Nano should be shut says TATA ex chief

Tata Sons' ousted Chairman Cyrus Mistry has alleged that Tata Motors has been unable to shut down the loss making small car Nano due to "emotional reasons" and doing so would also stop the supply of "gliders" to an entity that makes electric cars in which Ratan Tata has a stake. "As there was no line of sight to profitability for the Nano, any turnaround strategy for the company requires to shut it down," said Mistry.  The Nano product development required concept called for a car below Rs 1 lakh but the cost were always above this. This product has consistently lost money, peaking at Rs 1,000 crore," Mistry said in his letter written a day after he was ousted as the Chairman of India's largest conglomerate. "Prior to my appointment, I was assured that I would be given a free hand. The previous chairman was to step back and be available for advice and guidance as and when needed. After my appointment, the Articles of Association were modified, changing the rules of engagement between the Trusts, the Board of Tata Sons, the Chairman, and the operating companies. Inappropriate interpretation indeed followed, and as elaborated below, it severely constrained the ability of the group to engineer the necessary turnaround," he has said in the letter.