Tata Motors couldn't shutdown Nano due to emotional reasons: Takeaways from Mistry's letter

Emotional reasons alone have kept us away from this crucial decision, said Mistry

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, Tata Sons' ousted Chairman Cyrus Mistry has alleged.

ALSO READ: Full text of Cyrus Mistry's letter to Tata Sons Board

In clear indications that not all was well between him and Tata, Mistry in his letter to Tata Sons board members said for the group's automotive venture Tata Motors to make a turn around the company needed to shut down the Nano -- a pet project of his predecessor.

Here are the takeaways from the letter:

1. Not shutting down Nano was an emotional reason
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.

He further said: "As there is no line of profitability for the Nano, any turnaround strategy for the company (Tata Motors) requires to shut it down. Emotional reasons alone have kept us away from this crucial decision." Moreover, raising issues of conflict of interest, Mistry said: "Another challenge in shutting down Nano is that it would stop the supply of the Nano gliders to an entity that makes electric cars and in which Mr Tata has a stake.

ALSO READ: Ratan Tata to meet PM Narendra Modi this week, Cyrus Mistry in queue too

2. Mistry says was pushed to a position of 'lame duck' 

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