TATRA Co'

1
TATRA Co.
University of Economics, Prague
Prof. Milan Maly
2
TATRA Czech Truck and Car Maker

• 1897 President put on the road
• Climbed the high TATRA mountains (adopted the
  name)
• Original, brilliant shape, high performance, low
  costs of maintenance
• Air cooled engine, in rear part

3

• CPE one of the most successful companies
• 1989 16,000 employees
• Off-Road Trucks
• Market
• domestic construction industry (energy,
  manufacturing, agriculture)
• foreign CMEA countries,
• developing countries
• Military Warsaw Treaty

4

• 1990 1992 TATRA lost almost all market
• Joint-venture ?
• 1992 Privatisation through voucher method
• less than 11,000 employees
• less than 7,000 employees
• 50 capacity used

5
MANAGERIAL EXPERIMENT

• Hired 3 foreign top managers
• Gerald Greenewald (Rescue of Chrysler)
• Jack Rutheford Production
• David Shelby Finance
• Original solution, no consulting firm

6
ANALYSIS

• Product
• Employees
• Technology
• Economy
• Conclusion

7
CONCLUSIONS

• Situation not hopeless
• Comparison with Chrysler
• TATRA
• Good product
• Smaller, progress faster
• Marketing and sale main weakness of Tatra
• CHRYSLER
• No good product
• Strong leader (LEE IACOCCA)

8
EXPECTATIONS

• Authority to realize changes quickly and
  rigorously
• Trough their contacts to find new market
  possibilities
• Increase image of the firm

9
ORGANIZATIONAL CHANGES

• Foreigners became members of managing board
  (two-tier system)
• Were promised 15 of equity after successful
  turnaround

10
POSITIVE ASPECTS

• Winner of Paris-Dakar races
• Reconstruction of distribution network
• Restructuring of bank loans
• Increase quality of subcontracting parts
• DONTZ engines

11
NEGATIVE ASPECTS

• Continuous decline
• Inconsistencies of contract
• Managerial mistakes (spare parts, partners)
• Underestimated different environment

12
ENVIRONMENT

• Top and mid level managers from the past, passive
• Absence of local competent top executives
• Ineffective communication

13

• Results after two years foreigners were released
• Today slow recovery
• new owner TEREX TATRA
• latest contract Iraq