Tata Motors Acquires Remaining Share in Hispano (Update: Now Production Ceased)


Thread Starter #1
Joined
Sep 18, 2009
Messages
4,019
Likes
90
Location
Bokaro/Bangalore
Tata Motors, which had a 21% stake in Hispano Carrocera S. A., Spain, since 2005, has acquired the remaining 79% shares in Hispano by way of exercise of the existing call option, through mutual agreement with the other share-holder, Investalia S. A, Spain. This acquisition demonstrates Tata Motors’ ongoing commitment to Hispano Carrocera.




After the acquisition, the company will further strengthen the ongoing initiatives to improve operational efficiencies such as productivity improvement, cost reduction, and new product development, to improve market share of the company and enhance brand value. Tata Motors is confident that Hispano will now emerge as an even stronger force in the Spanish as well as Global bus and coach markets.

Source - Tata Motors
 

350Z

Core Team
Joined
Aug 10, 2009
Messages
18,428
Likes
6,205
Location
New Delhi
Kudos to Tata Motors.

That’s another great news from Tata Motors. The bus looks cool and headlamp design resembles so much to Lamborghini Murcielago. By the way, Is that image animated or only appearing to me like that? :biggrin: Watch it closely for a minute or two.

Drive Safe!
350Z
 

350Z

Core Team
Joined
Aug 10, 2009
Messages
18,428
Likes
6,205
Location
New Delhi
Re: Tata Motors acquires remaining 79% in Hispano Carrocera

Tata Hispano Production Ceased at Zaragoza Plant

> The company accumulated losses of 60 million euros in the last five years

> The situation is untenable in Zaragoza factory because of the dramatic drop in its production and sales.

> To impact entire workforce of 287 employees; the company discussing a social plan with the Workers’ Committee for solutions to minimize the possible effects of the measure.

Tata Hispano Motors Carrocera in Zaragoza today announced to the Workers’ Committee of Tata Hispano Motors Carrocera that it planned to cease production activities in Zaragoza´s factory. The Company has invited the workers' representatives to the discussions to formally initiate the consultation period in order to agree on a social plan for the 287 employees working in the factory today.

The decision to cease the activity at Tata Hispano Motors Carrocera has been compelled due to economic and business factors, as despite strong investments, there has not been a positive result to reverse the challenging business situation and losses for the plant.

In the past five years, Tata Hispano Motors Carrocera operating losses accumulated to over 60 million euros, and there has been a constant decline in its production. These have been a result of consistently falling sales in recent years, primarily due to the worst-ever decline in the bus market, showing a decline of -38% in the number of registrations. Further, all market evaluations do not predict any positive change in the near future, with the growing accumulation of operating losses making the plant production unviable.

Tata Hispano Motors Carrocera has informed the Workers Committee about the company’s decision to definitely cease the production of the factory. The production activity is expected to stop in October 2013 after fulfilling the commitments to deliver current orders.

The company has expressed its willingness to reach an agreement. The Company continues to have a tremendous respect for the workers of Tata Hispano Motors Carrocera, and remains committed to an ongoing dialogue that may help achieve a more satisfactory agreement for both parties, with the best possible accompanying social plan to help minimize the effects of the measure.

Tata Hispano Motors Carrocera wants to thank all the employees of the factory in Zaragoza for the effort and work they have put in over the years, and hopes to reach an agreement satisfactory to all. The Company also announced that it had received an offer from the Benseny Group. This proposal, which is not a purchase offer, is being pursued to explore the possibility of achieving continuity of Zaragoza factory.
Drive Safe,
350Z
 
Top Bottom