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Saturday, March 22, 2008

Tata World Takeover : Indian automaker may buy stake in Ferrari

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It's becoming increasingly apparent that India's largest automaker Tata cannot be stopped. On the verge of finalizing a deal to acquire Jaguar and Land Rover from Ford, Tata is now rumored to be interested in buying a stake in one of the most beloved performance marques of all time: Ferrari. We stress that this is a rumor, because it stems from a quote given by Tata's chief Ratan Tata to Italy's L'Espresso in which he reportedly said that he's always dreamt of being a fighter pilot (takeover of Bob Lutz?) and participating in the shareholding of Ferrari.

The reason this rumor has some legs is that Tata already has an established relationship with Ferrari's parent company Fiat. It's on the board of Fiat and has some engine supply deals with the Italian automaker. Fiat owns an 85% stake in Ferrari with an option to purchase an additional 5%. Could Tata, the maker of the world's least expensive auto, one day have a stake in the company that builds some of the world's most expensive and exotic autos? We wouldn't bet against Tata at this point.

Suzuki A-Star Concept

Suzuki A-Star Concept

It’s well known Suzuki is striving to build an imminent world car in India (built by Maruti Suzuki). It was also well known that Suzuki wanted a utilitarian little hatch with a 1.0 liter aluminum petrol engine and manual transmission with super low CO2 emissions – lower than 109g/km. What was unknown, and even took many by surprise, was just how beautiful the Suzuki A-Star concept would be.

When the car hits production later this year it’ll face stiff competition in Europe, but that doesn’t matter really, the real appeal of Suzuki’s ‘world car’ is in Asia where consumers are comfortable picking a Suzuki over any number of competing small hatches. In fact, Suzuki has often singled out India alone for helping the car manufacturer stay afloat. Take a trip to India and you’ll see just how popular Suzuki Altos and Wagons are.

As a competitive and affordable product, the Suzuki A-Star not only has a quality design but broad appeal. If anything, it’ll do spectacular in Asia.

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