Tata Sons Board replaces Cyrus Mistry as chairman. Selection Committee set up to choose a new chairman within 4 months.
24 Oct 2016 | 3825 Views | By Sergius Barretto, Autocar India
In a sudden move, Cyrus Mistry has been replaced as the chairman of Tata Sons, the position he was appointed to in December 2012.
Ratan Tata, the previous chairman and currently chairman emeritus, has been appointed as interim chairman for the next four months. A panel comprising Ratan Tata; ...
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In a sudden move, Cyrus Mistry has been replaced as the chairman of Tata Sons, the position he was appointed to in December 2012.
Ratan Tata, the previous chairman and currently chairman emeritus, has been appointed as interim chairman for the next four months. A panel comprising Ratan Tata; Venu Srinivasan, CMD, TVS Motor Company; Amit Chandra, MD, Bain Capital; former diplomat Ronen Sen, and Lord Kumar Bhattacharya, chairman of the Warwick Manufacturing Group, has been formed to select a new chairman.
Cyrus Mistry was the sixth chairman of Tata Sons, and had been a director of the company since 2006. In addition, he was also the chairman of some leading Tata Group companies such as Tata Steel, Tata Motors, Jaguar Land Rover Automotive and Tata Consultancy Services. His exit as chairman from Tata Sons, the holding company of the group, will see him relinquish his chairmanship of Tata Group companies, including Tata Motors as well.
Mistry is best known for his role in Tata Motors, which he steered through turbulent waters in the past four years. During his tenure, he oversaw the introduction of several models and put the company on a product offensive not seen before in its history. The Zest and Bolt, the first two launches under his leadership, were met with a lukewarm response but the Tiago, which has clicked with budget car buyers in India, is seen as a turning point in the company’s fortunes. The Hexa, Mistry’s big bet in the premium segment, has received positive reviews and seems poised to ride on the Tiago’s success when it is launched in January 2017.
Mistry also set the ball rolling for an all-new and versatile Advanced Modular Platform (AMP) designed to underpin a future range of Tata cars, while an all-new SUV (Q501/502) based on the Land Rover Discovery Sport (L550) is in the advanced stage of development for a 2018 launch.
However, the investment for several programmes still hasn’t been signed off by the Tata Motors board and the worry is that with Cyrus Mistry gone, there could be delays in funding new projects. With Ratan Tata taking over Mistry’s role in the interim, his first job will be to use his vast experience in the car business to maintain stability and reassure the senior leadership at Tata Motors.