Tata Motors has initiated an organisation restructuring which includes hiving off ‘quality’ as a separate vertical. The company will also set up a strategy for acquisitions, reports CNBC-TV18's Ronojoy Banerjee.
The images of the Nano going up in flames are still etched in the minds of many and therefore it comes as no surprise that barely 3.5-4 months into his new role the Managing Director Karl Slym has tried to identify how to fix issues arising out of quality. Tata Motors has decided to hive off quality as a separate vertical all together.
Earlier quality, supply chain and vendor development all three were part of one vertical which was headed by the executive director SB Borwankar. But now Borwankar has been directed to be solely responsible for quality. The company announced a week ago that they have roped in M Venkatraman, an old General Motors hand who was earlier responsible for the Korean market sourcing to head their supply chain.
Also, the company has setup a separate team for making acquisitions. This would be called as strategy team. The company has not yet identified as to who will head the team. They are still looking for someone and whoever the head will be, may also get a position on the board.
Now, the question is whether all these changes will help the company bridge the perception issue that the company has been fighting for sometime? That is something we will have to wait and watch.
Tata Motors spokesperson has confirmed on all the three developments and said that quality deserves a completely special attention and that is what has necessitated Tata Motors to make this board rejig.