The commercial venture of Tata Motors, by collaborating with the largest vehicle manufacturer of heavy and commercial vehicles of South Korea, as official it is known as Tata Daewoo Commercial Vehicle Company. It is considered to be a part of subsidiary of Tata Motors. Its headquarter is established in Gunsan, South Korea, which is considered to be the second largest vehicle manufacturing organization having its operations worldwide. The Daewoo Commercial Vehicle Co. Ltd was established in year 2002, but later it was acquired by Tata Motors, India which is the largest passenger automobile and commercial vehicles manufacturing company of India.
In the year 2004, the Korean employees of the company Daewoo Commercial Vehicle, were confused and worried about their company’s future. There was a talk of uncertainty sparked over the issue of bankruptcy of its parent company Daewoo Motor Co. There was news which excited everybody about another vehicle company deciding to buy Daewoo Commercial Vehicle Company. But soon the excitement turns into disappointment as they come to know about the new owner, who will be based in India. And they thought India as a lesser developed country as nobody had heard about Tata Motors.
It took several days for the management of South Korean company to decide and sell their company to the Tata. Thus the Daewoo Commercial Vehicle Company became part of Tata group of companies. There was an argument and it took long before the managements finally sold the rights of company to the new owner. The management explained the workers about the success of Tata Motors Company in India and its way of working with employees and the way of understanding the problems and benefits.
Thus Tata Daewoo Commercial Vehicle or as it is referred as Tata Daewoo, the new company was established. The working of the company started smoothly after the initial jitters from the Korean employees. The company started growing, by increasing earnings every year and jumped the export sales higher than before giving a net profit, which is five times bigger than before.
The Company was showing steady but a stable growth over the years. The Korean workers who started working for the successful Tata Daewoo Company were become loyal and started believing in the company which made the working better.
The vice-president of the Tata Daewoo’s trade union, Mr.Kim Geun-gyu, was happy with the management. He appreciated the concern shown by the Indian owner toward the employees and their well-being. He said,” Tata is a foreign company but it has shown tremendous respect to the people of Korea and their culture, which is very amazing”. This marks the success story of Tata, which has set an ideal for all of us.