Zee Media Bureau
New Delhi: Even as the boardroom battle between Tatas and Mistry rages on, a director of Tata Motors board has reportedly stated that Tata Nano was a failure from day one and hence, the ouster chairman Cyrus Mistry cannot be held responsible for it.
As per report in Business Standard, a director of Tata Motors board defended Mistry stating that he can't be held responsible for the losses occur by Ratan Tata's pet-project Nano.
According to the director, Tata Nano was a failure from day one and never made any money but has lost between Rs 6,000 crore and Rs 7,000 crore since its launch.
“The board was concerned over the Nano and we had discussed several options as it was losing money on every car and the inventory was only piling up,” Business Standard quoted the director as saying, who refused to be named. “After sinking in Rs 6,000-7,000 crore in the Nano till date, what is the result?”
“The entire board is the owner of the decisions and not Mistry alone. If Cyrus is removed for this reason then the entire board should be sacked,” the director was further quoted.
In one his various revelations and allegations against the Tata Sons after he was sacked as the chairman of the company, Mistry asserted that Nano car project consistently lost money but could not be shut down for "emotional reasons" and because it would have stopped the supply of Nano gliders to an electric car making entity where Tata had stake.
“...the Nano product development concept called for a car below Rs 1 lakh, but the costs were always above this. This product has consistently lost money, peaking at Rs 1,000 crores,” Mistry stated in the five-page letter that he wrote.
Mistry further revealed in the letter that “motional reasons alone have kept us away from this crucial decision (shutting down Nano).”
“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,” he added.
Tata Nano was launched in 2009 as the 'cheapest car in the world'. However, it failed to generate sales mainly due to competitions from better models by Maruti, Hyundai.