Tata Motors has a new CEO and managing director, after a two-year gap. Guenter Butschek (55), ex-COO and an ex-Daimler professional, has now taken the top post at the Indian OEM.
Tata Motors, which has embarked on a turnaround strategy for its passenger vehicle business unit, will look to benefit from Butschek's long stint in the automotive sector as well as his experience of running a big corporation.
Butschek will lead all operations of Tata Motors in India and international markets including South Korea, Thailand, Indonesia and South Africa. Jaguar Land Rover would continue to be managed by its CEO and director, Dr Ralf Speth, who is also on the Board of Tata Motors. Butschek is expected to join the company by February 15, 2016.
The appointment of Guenter Butschek reflects Tata Motors' efforts in reviving its passenger vehicle business and further consolidating its leadership position in commercial vehicles in the domestic market, while taking the brand global under both the businesses. The company had appointed former COO of Maruti Suzuki, Mayank Pareek, in September 2014. Pareek is heading Tata Motors' passenger vehicle business unit.
Guenter Butschek, who is a graduate in Business Administration and Economics with a diploma from the University of Cooperative Education Stuttgart, Germany, was the Chief Operating Officer of the Airbus Group from 2012 to December 31, 2014. Butschek, who joined Airbus as head of operations in 2011, spent most of his career at Daimler AG, where he gained more than 25 years of experience in international automotive production, industrialisation and procurement.
He began his professional career in 1984 at Mercedes-Benz AG in Stuttgart, Germany, as Project Engineer Central Material Management. After several positions in logistics, human resources and procurement functions at the Mercedes-Benz Passenger Cars division, Butschek became a member of the management board of DaimlerChrysler South Africa (DCSA) with full operational responsibility in 2000.
In 2002 Butschek moved to the Netherlands as president and CEO of Netherlands Car BV, a contract manufacturer within the global manufacturing network of DaimlerChrysler and Mitsubishi Motors Corporation. He successfully managed the restructuring of processes and turnaround programmes with significant improvement in performance, quality and productivity.
In 2005 Butschek took over as president and CEO of Bejing Benz Automotive Co, in China. Leading the joint venture, he relocated the operations to an all new state-of-the-art facility and increased productivity and flexibility of the plant. He launched several new production lines for Mercedes, Chrysler and Mitsubishi products and set the footprint for future profitable growth.
Commenting on the new appointment, Cyrus P Mistry, chairman, Tata Motors, said: “Tata Motors is going through an exciting yet challenging phase and Mr Butschek’s appointment comes at an opportune moment. He brings with him rich global experience of growing organisations and developing new markets. I am confident that Mr Butschek’s ability to lead high-performing teams will enable our company to achieve sustainable, profitable growth.”