In a message dated 4/3/08 2:39:03 A.M. Central Daylight Time, News@JobDestruction.info writes:
<<<<< JOB DESTRUCTION NEWSLETTER No. 1848 -- 4/03/2008 >>>>>
A huge Indian owned mega-corporation called "The Tata Group" bought Ford's
Jaguar and Land Rover for a cool $1.7 billion. Just about at the same time,
Chrysler announced that they will outsource hundreds of computer jobs to
the bodyshop Tata Consultancy Services (TCS).
Not to worry about Chrysler employees though, because according to Jan
Bertsch, Chrysler vice president and chief information officer, some
employees may be re-hired by Tata, and some work will be moved entirely
off-site.
Corporations always say some of their people will be rehired when mass job
terminations are announced. It's standard PR to calm the doomed employees
who have their necks tied to the chopping block. You would think that
reporters and journalists would stop falling for this baloney but they
never do. In order for you to understand what Bertsch really meant, I
decided to provide a translation what Bertsch means in plain English
instead of CFO-talk:
1) All, not some, of Chrysler IT workers who are not Indian nationals will
be terminated. That's because Tata's TCS only employs Indians of the
Brahmin caste H-1B or L-1 visas.
2) All, not some, jobs that can be outsourced to India will be.
3) All, not some, of Chrysler executives will get paid a big fat bonus for
making Chrysler more profitable in the short term.
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Articles Included
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http://www.detnews.com/apps/pbcs.dll/article?AID=/20080403/AUTO01/80403034
1/1001/BIZ
400 Chrysler tech jobs go
http://www.freep.com/apps/pbcs.dll/article?AID=/20080402/BUSINESS01/804020
77
Chrysler to outsource hundreds of computer jobs
http://www.baltimoresun.com/business/bal-bz.jaguar27mar27,0,5711975.story
Indian firm buys Ford's Jaguar, Land Rover for $1.7 billion
http://www.tcs.com/news_events/press_releases/Pages/TCSwinsmulti-yeardeal.as
px
Press Release
TCS Wins Multi-Year Deal with Chrysler LLC
http://www.tata.com/tata_motors/releases/20080326.htm
Tata Motors enters into definitive agreement with Ford for purchase of
Jaguar Land Rover
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080403/AUTO01/80403034
1/1001/BIZ
Thursday, April 3, 2008
400 Chrysler tech jobs go
Metro positions will be lost when computer technology tasks are outsourced
to companies in India, Virginia.
Eric Morath / The Detroit News
At least 400 people will lose their jobs at Chrysler LLC as the automaker
outsources computer technology work -- part of an effort to streamline its
information technology department and a long-range plan to cut costs.
The transition will start immediately, though some workers may not depart
until the third quarter.
Chrysler has finalized contracts with India-based Tata Consultancy Services
and Virginia-based Computer Sciences Corp. to take over maintenance and
support operations from internal employees, Jan Bertsch, Chrysler vice
president and chief information officer, said in an interview on Wednesday.
Eliminating those jobs will allow Chrysler to invest more in advanced
technology and expand its overseas reach because costs for routine
operations will be greatly reduced, she said. The service contracts are
valued in the hundreds of millions of dollars, but Chrysler would not
divulge details.
Outsourcing the work will shrink Chrysler's 2,100-person information
technology department, mostly in Auburn Hills. About 200 of Chrysler's
1,000 salaried technology workers will lose their jobs. The balance of the
layoffs will come from the ranks of 1,100 contract workers in that
department. They will leave in greater numbers, but Bertsch didn't offer
specifics.
Some employees may be hired by Tata or Computer Sciences, she said, and
some work will be moved entirely off-site.
The outsourcing and job losses are part of Chrysler's three-year Recovery
and Transformation Plan first announced in February 2007. That plan, which
was updated in November, calls for the elimination of 3,000 salaried
positions and 25,000 jobs overall.
Bertsch said the plan also requires the more efficient operation of all
company departments, including information technology.
Previously, the majority of technology budgets have been committed to
routine tasks, leaving little money to invest in advanced technology,
Bertsch said
"We are an auto manufacturer, we don't have the same scale and expertise
that (technology firms) do," she said.
Tata Consultancy Services, a division of the Tata Group, which recently
acquired Ford's Jaguar and Land Rover, and Computer Sciences will service
hardware and manage applications for functions like product development and
sales and marketing. Chrysler continues to run business analysis,
customer-service operations and other key areas.
With clients worldwide, Tata and Computer Sciences are in a better position
to support Chrysler's growing overseas operations, Bertsch said. "The
companies have global delivery capacity and can easily invest more in new
technology," she said.
Top executives have said growing Chrysler sales, manufacturing and
engineering presence in developing countries is essential to returning the
company to profitability.
Sending "non-core" work to a lower-cost supplier makes a lot of sense for a
company fighting to return to profitability, said Van Conway, senior
managing director at Birmingham-based turnaround firm Conway MacKenzie &
Dunleavy.
"Profitable companies tend to take things in house, and as times get lean
you see more outsourcing," he said. "It's smart, if you don't lose quality
and can do it economically."
The loss of the jobs at Chrysler is an example of why, when the auto
industry contracts, so does Michigan's high-tech employment base, said
Scott Watkins, of the Anderson Economic Group.
"This is Chrysler catching up with the times -- most companies outsource
work that's not primary to their corporate mission," he said. "This means
fewer jobs for the Metro Detroit economy, but it does open up opportunities
for new or existing companies to compete in this technology services
space."
You can reach Eric Morath at (313) 222-2504 or emorath@detnews.com.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.freep.com/apps/pbcs.dll/article?AID=/20080402/BUSINESS01/804020
77
Chrysler to outsource hundreds of computer jobs
By TIM HIGGINS -- FREE PRESS BUSINESS WRITER -- April 2, 2008
Chrysler information technology workers were told today that the company
has signed agreements with Tata Consultancy Services and Computer Sciences
Corp. for the firms to maintain and support mainframe, servers and
corporate computer applications, Jan Bertsch, Chrysler vice president and
chief information officer, told the Free Press in an interview.
"This is not just putting work with another supplier to reduce cost, we
thought a year ago that rather than try to cost-cut continually over time,
we wanted to step back and look at our business and say, ‘Where do we
really need to move to service our customers better?'" Bertsch said. "What
we determined was that we were spending too much of our base budget on core
maintenance of our systems and not enough in reinvesting in our business."
Bertsch declined to say how much money the move will save the automaker
other than to say, "We would have never embarked on this scale of a project
had the savings not been substantial."
Chrysler is beginning immediately on the project and hopes to have it done
by the end of the third quarter.
The automaker has about 2,100 people handling the work presently -- of
which around 1,000 are full-time Chrysler employees and the rest are
supplemental workers on contract.
About 20% -- about 200 -- of the 1,000 full-time employees will lose their
jobs because of the change, she said.
The company is not saying how many of the supplemental contract workers
will lose their jobs in the switchover other than to indicate it will be
several hundred. "It won't be the entire group but it will be more
substantial than the salaried," she said.
"Some people will stay, some people will leave and some people will be
interviewing with the new provider and perhaps be offered a position with
them," she added.
Chrysler officials wouldn't say how much money the new providers will pay.
Chrysler has already had a relationship with Tata. Earlier this year,
Chrysler signed a new deal with Tata to do computer work in sales,
marketing and shared services as part of a multiyear contract reportedly
worth $120 million.
Contact TIM HIGGINS at 313-222-8784 or thiggins@freepress.com.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.baltimoresun.com/business/bal-bz.jaguar27mar27,0,5711975.story
Indian firm buys Ford's Jaguar, Land Rover for $1.7 billion
From wire reports
March 27, 2008
DETROIT
Ford Motor Co. is selling its storied Jaguar and Land Rover businesses to
India's Tata Motors Ltd. in a deal that will net the U.S. automaker $1.7
billion.
The purchase price is more than the market expected but about a third what
Ford paid for the brands several years ago.
The long-awaited deal, which was announced yesterday, also carries a
painful payout for Ford. Tata will pay $2.3 billion for the British brands,
but Ford will pay about $600 million into the Jaguar-Land Rover pension
fund when the deal closes.
Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion
in 2000. But the U.S. automaker has been struggling and wants to focus on
its main brands.
Selling the companies at such a loss clearly shows buying them was a
mistake for Ford, said Erich Merkle, vice president of auto industry
forecasting for the consulting company IRN Inc. in Grand Rapids. Mich.
Jaguar never has made a profit under Ford, Merkle said.
"How can you call it anything else?" he asked. "You have to cut your losses
at some point. It's been draining them of cash and resources."
Tata Group, one of India's largest conglomerates, has been on an overseas
acquisition spree, buying everything from tea and coffee companies to steel
manufacturers. Other Indian companies also are considering overseas
acquisitions, as a weak dollar coupled with strong domestic growth make
takeovers attractive, particularly in the United States.
Tata rarely changes the character of the companies that it buys over the
near term.
Ratan N. Tata, the chairman of Tata Sons and Tata Motors, reiterated that
strategy yesterday, saying the Tata Group "will endeavor to preserve and
build on their heritage and competitiveness" of the two brands, while
"keeping their identities intact."
No changes are expected to employment terms for the nearly 16,000 workers
at Jaguar and Land Rover.
Ford is in the midst of a painful overhaul, after losing $15 billion in two
years.
Ford will continue to provide some components, including powertrains, to
Jaguar and Land Rover, which are built in Britain, as well as some research
and development support. Ford's finance arm, Ford Motor Credit, will
continue to provide financing to Jaguar and Land Rover dealers and
customers for up to 12 months.
The sale raises the Tata conglomerate's profile on the world stage, said
V.G. Ramakrishnan, the lead auto analyst with the consulting firm Frost and
Sullivan India.
"This is another important landmark step of showcasing that Indian
companies are arriving on the global landscape," he said.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.tcs.com/news_events/press_releases/Pages/TCSwinsmulti-yeardeal.as
px
Press Release
TCS Wins Multi-Year Deal with Chrysler LLC
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Mumbai, India - February 20, 2008 - Tata Consultancy Services (TCS), (BSE:
TCS.BO, NSE: TCS.NS), a leading global IT services and business solutions
firm, today announced that it has signed a multi-year contract with
Chrysler LLC to provide a comprehensive portfolio of IT services.
Leveraging TCS’ Global Network Delivery Model, TCS will deliver
application maintenance and support services to Chrysler. The IT services
initiative will encompass a portion of the functional areas within
Chrysler, such as Sales and Marketing and Shared Services.
"This growing trusted partnership is a testament to TCS’ competencies and
capabilities which continue to help the customer in its business
transformation by providing innovative IT services scalable to their
needs," said N. Chandrasekaran, executive director and chief operating
officer of Tata Consultancy Services. "The expertise and in-depth knowledge
of the automotive industry and Chrysler’s business, coupled with our
ability to deliver certainty of results will provide sustained value to
Chrysler."
The automotive industry is one of the focus markets for the TCS
Manufacturing vertical which accounted for 15.1% of TCS’ FY 2007 $4.3
billion global revenues. TCS provides services to many of the automotive
OEMs and tier one companies in North America, Europe and Japan. These
services are provided across the entire automotive value stream including
product development, manufacturing, supply chain and customer experience
areas.
TCS’ Global Network Delivery Model is a collaborative, best-in-class
framework of people, processes and infrastructure. The model taps on TCS’
global intellectual assets of tools, methodologies and products to help
customers reduce implementation time, realize benefits quicker and achieve
business goals.
Note: This TCS release and other news announcements are available as part
of an RSS feed.
About Tata Consultancy Services (TCS)
Tata Consultancy Services is an IT services and business solutions
organization that delivers real results to global businesses, ensuring a
level of certainty no other firm can match. TCS offers a consulting-led,
integrated portfolio of IT and IT-enabled services delivered through its
unique Global Network Delivery Model, recognized as the benchmark of
excellence in software development. A part of the Tata Group, India’s
largest industrial conglomerate, TCS has over 108,000 of the world's best
trained IT consultants in 47 countries. The company generated consolidated
revenues of US $4.3 billion for fiscal year ended 31 March, 2007 and is
listed on the National Stock Exchange and Bombay Stock Exchange in India.
For more information, visit us at www.tcs.com.
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.tata.com/tata_motors/releases/20080326.htm
Tata Motors enters into definitive agreement with Ford for purchase of
Jaguar Land Rover
March 26, 2008
Tata Motors today announced that it has entered into a definitive agreement
with the Ford Motor Company for the purchase of Jaguar Land Rover,
comprising brands, plants and intellectual property rights.
The transfer of ownership to Tata Motors is expected to close by the end of
the next quarter, subject to applicable regulatory approvals. The total
amount to be paid in cash by Tata Motors for Jaguar Land Rover upon closing
will be approximately $2.3 billion. At closing, Ford will then contribute
up to approximately $600 million to the Jaguar Land Rover pension plans.
Commenting on the agreement, Chairman of Tata Sons and Tata Motors, Ratan N
Tata, said, "We are very pleased at the prospect of Jaguar and Land Rover
being a significant part of our automotive business. We have enormous
respect for the two brands and will endeavour to preserve and build on
their heritage and competitiveness, keeping their identities intact. We aim
to support their growth, while holding true to our principles of allowing
the management and employees to bring their experience and expertise to
bear on the growth of the business."
Alan Mulally, president and CEO of the Ford Motor Company, said, "Jaguar
and Land Rover are terrific brands. We are confident that they are leaving
our fold with the products, plan and team to continue to thrive under
Tata's stewardship. Now, it is time for Ford to concentrate on integrating
the Ford brand globally, as we implement our plan to create a strong Ford
Motor Company that delivers profitable growth for all."
As part of the transaction, Ford will continue to supply Jaguar Land Rover
for differing periods with powertrains, stampings and other vehicle
components, in addition to a variety of technologies, such as environmental
and platform technologies. Ford has also committed to provide engineering
support, including research and development, plus information technology,
accounting and other services.
In addition, Ford Motor Credit Company will provide financing for Jaguar
and Land Rover dealers and customers during a transitional period, which
can vary by market, of up to 12 months.
The parties believe these arrangements will support Jaguar Land Rover's
current product plans, while providing Jaguar Land Rover with the freedom
to develop its own stand-alone capabilities in the future that will best
serve its premium manufacturer requirements.
The parties do not anticipate any significant changes to Jaguar Land Rover
employees' terms of employment on completion.
Jaguar Land Rover's employees, trades unions and the UK government have
been kept informed of developments as the sale process progressed and have
indicated their support for the agreement.
Founded in 1922, Jaguar has been among the premium brands for luxury
saloons and sports cars. Since its very first design appeared in 1948, Land
Rover has always been universally identified as the ultimate in four-wheel
drive vehicles. Jaguar and Land Rover have been under Ford's ownership
since 1989 and 2000 respectively. The two together have about 16,000
employees.
Safe harbour
Statements included herein may constitute "forward-looking statements".
Forward-looking statements are based on expectations, forecasts and
assumptions by management and involve risks, uncertainties, and other
factors that may cause our actual results, performance or achievements to
materially differ from those stated. We cannot be certain that any
expectation, forecast or assumption made by management in preparing these
forward-looking statements will prove accurate, or that any projection will
be realised. More detailed information about these and other factors that
could affect future results is contained in our annual reports and filings
with the Securities and Exchange Commission. Our forward-looking statements
pertain to the date of their initial issuance, and we do not undertake to
publicly update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise.
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