No way Tata’s dream project Nano will make money, shut it: Mistry
New Delhi, Oct 26 (IANS) Cyrus Pallonji Mistry, who was removed as chairman of Tata Sons by the company board on Monday, has suggested that Ratan Tata’s pet project — the Nano car — should be shut down as there was no way it would become profitable.
In an angry letter to the board members who ruled against him, and the Tata Trustees, Mistry said the cost of Nano was always above the price of the concept car of Rs 1 Lakh. “This project has consistently lost money, peaking at Rs 1,000 crore,” Mistry said in his five-page letter, a copy of which is with IANS.
Suggesting that the Nano turnaround strategy should include closing shop, Mistry said: “As there is no line of sight to profitability for the Nano, any turnaround strategy for the company requires to shut it down.”
“Emotional reasons alone have kept us away from this crucial decision,” he added.
But he also implied that there was more to it than mere emotion reasons. “Another challenge in shutting down Nano is that it would stop the supply of the Nano gliders to an entity that makes electric cars and in which Mr Tata has a stake,” Mistry said, taking the allegations to a whole new level.
The board brought back Tata to the position of Chairman of Tata Sons after showng the door to Mistry. Tata was Chairman of the company till four years ago when Mistry was appointed to the post.