Tata Motors finds task cut out for Iveco turnaround after twin losses
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Tata Motors faces a tough task fixing Iveco after twin losses and a deal worth over €3.91 billion.
- ✓The firm must manage heavy debt while keeping plants intact.
- ✓Iveco chief Olof Persson said, “We have run global businesses for a long time.” Investors now wait for a clear turnaround plan.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
The to-do list is long. Tata has to repair Iveco’s earnings while servicing the debt it took on to fund a deal worth more than €3.91 billion. The terms of the offer also stop it from restructuring Iveco right away and require it to keep the truckmaker’s industrial footprint, including several plants, intact.
Investors will be watching for a turnaround plan, which is expected to cover a review of sourcing, lower product development costs and higher combined sales. Iveco chief executive Olof Persson says he expects profit to recover in the December quarter, even though demand for light commercial vehicles is weaker, the economy is uncertain, and the mix of vehicles sold is working against the company.
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