It?s not quite a desi-run at the helm of global automobile majors in India with many of them opting for a foreign hand to run operations than go in for an India boss.
Even as they expand operations in the country driven by the booming market, crucial positions are being taken by foreign nationals. The latest to join the foreign brigade gang is General Motors that on Monday announced the appointment of Karl Slym as the company’s president and managing director in place of Rajeev Chaba who moves to Egypt. Chaba?s sudden exit comes as a surprise as it is at a time when the company embarks on a massive expansion drive in India, including setting up a new plant.
?India is one of GM?s most significant growth markets and Rajeev has led the GM team at an important time in our history. We are delighted to have Karl bring his extensive experience to maintain that growth,? GM Asia-Pacific group vice-president and president Nick Reilly said in a statement. This is not the first time when international auto majors have decided to go in for foreign personnel to head crucial areas of operations.
In 2006, Ford India had appointed Scott McCormack to head its marketing operations in India in place of V Sivaramakrishnan.
Even Japan’s Honda Motors had appointed Hiroshi Shimizu to head its Indian sales operations in April 2006 following the resignation of Rajeev Saharia. The issue of who heads the operations has proved to be a thorny one also.
Notable spats was the power struggle in Korean car major Hyundai’s Indian subsidiary. It is understood that Korean MDs appointed to India were not very happy with then president BVR Subbu as the latter was the one in control of operations and who talked about the company’s policies with the media.
Ending his decade long association with the company, Subbu suddenly quit Hyundai India in March last year, days before his contract was to come up for renewal.
The issue is currently also dogging the country’s biggest carmaker Maruti Suzuki India, controlled by Japan’s Suzuki Motors.