Tata Motors, the country's largest automobile manufacturer, is dead set to curtail its excess spending, in order to circumvent the prevalent slack demands for its products in passenger and commercial vehicle markets. To maintain an equilibrium between dwindling sales and loss of revenues, Karl Slym, Managing Director (MD) of Tata Motors, has issued a directive to all divisions of the company for curtailing excess expenditures in avoidable money disposal and unnecessary travel expenses.
As per reports, Slym's advisory has even suggested Tata Motors' internal departments to ensue an intelligent cut back on manufacturing operations and haphazard money laundering on product development initiatives. The new MD has called the company's workforce for an urgent curtailment in expenses on air travel, international visits and other similar sorts of money splurge. Further, Slym supported the idea of using more modern technology for cross nation communication, such as video conferencing with multiple parties at the same time as against travelling overseas to participate in face to face meetings. Coming back to air travel, Slym suggested that Tata Motors' employees should turn to them only when it becomes unavoidable or is a matter of extreme urgency.
At present, Tata Motors is heavily burdened with a sharp decline in sales of its passenger and commercial vehicle segments like many of its contemporaries in the Indian auto market. The company has sought asylum in cut back initiatives like plant closures, reduction in manufacturing operations along with plant closures, so as to maintain decent and regular profit margins. Evidently, Tata Motors' recent exercise to lure more customers by doling out big discounts and attractive schemes in its year ending December sale has posed a heavy onus on its profit latitude. Apparently, it is not just the local employees of Tata Motors employees that have been directed to curtail their expenses; the company has issued similar advisory to its employees in Thailand as well.
