In an unexpected development, Tata Motors has announced that its Group Chief Executive Officer and Managing Director, Mr Carl-Peter Forster, has stepped down from the position with immediate effect. Mr Forster has cited “unavoidable personal circumstances” for the move.

Mr Forster, for whom the Group Chief position was created in February 2010, will still remain a part of the company's board as a non-executive member. Other senior management positions for the automaker remain unchanged.

Mr Prakash Telang as the Managing Director of India Operations, and Dr Ralf Speth as the CEO of Jaguar Land Rover, will represent their respective operations on the board, a company statement said.

The ADR of Tata Motors on the NYSE plunged 7.33 per cent to $15.67 at 9-15 p.m. IST.

“The board respects Mr Carl-Peter's personal circumstances that led to this move. We would like to thank him for his contributions to the successful development of our company in his role as Group CEO and MD. We are looking forward to continue to working with him as a non-executive member of the board,” Mr Ratan N. Tata, Chairman of the Board of Tata Motors, said.

A company spokesperson refused to comment when asked for further details. There was also no indication if a replacement will be sought for the position of Group CEO and MD.

Several top officials in the domestic industry said that the development comes out of the blue. “This was a total surprise. There was no intimation of such a move in the industry,” a top official from a carmaker said.

Industry sources said that Dr Speth could now play a bigger role in Tata Motors, with JLR's contribution in Tata Motors' Group revenues rising over the last few quarters. .

>roudra.b@thehindu.co.in

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