Sunday, March 2, 2008

Some Clarification

In my earlier post under "if chinese can why not indians?", i was talking of building everything which has an indian touch and not something that is in parts. I had a comment on the post

"PSUmba said... The Indians are ... Global Vehicles (www.GV-USA.com) of Alpharetta, GA has been named the USA importer for trucks from Mahindra & Mahindra. Look for a 2009 launch"

If one looks at the post, it mentions this point "The vehicles are expected to have a base price in the mid-$20,000 range and use diesel engines built by a major German auto supplier." Now when you go for JV or strategic alliances, the price of the product is the worrying factor and engine is the most important parts in an automobile. I can understand if it were small parts like bolts, nuts etc. But in this case, I cannot accept this one as an engineering marvel akin to TATAs. Its more or less like procuring private brands and putting on a label. From a business perspective it seems OK, but has nothing to do with long term planning so as to capture a market share. So if one looks at the automobile industry in the US, just to keep tab on the costs, some of small parts may be from other suppliers or may be from other country.

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