While predicting yet another gloomy fiscal - irrespective of new launches - auto analysts say that these global giants have failed to gauge the potential of Indian markets correctly by launching wrong models at the wrong time. Mercedes Benz saw its sales falling drastically to 1,116 units from 3,042 units. ``While these companies are successful all over the world, here companies like Maruti and Honda have fared far better than Ford and General Motors,'' says an analyst with HSBC. ``Ford or GM can increase their market share by taking over some other Indian companies as both companies have deep pockets,'' analysts add.General Motors of US is already in talks with Daewoo of Korea to take over the latter car's business which will witness higher market share for GM India in the country. Daewoo sold more than 10,000 cars in the fiscal 1999 though fuel efficiency of its Cielo remains a big drawback.

Similarly, even PAL-Peugeot is ready for a takeover but no auto manufacturer has come forward till now to buy the plant. Though the entire industry sold 1 per cent less in fiscal 1999, the fall in Ford, GM and Mercedes was more evident. While Ford Motors sales fell by around 100 per cent, GM's saw its sales sagging by 114 per cent. Mercedes Benz was another laggard as its sales fell by 172 per cent.

``It was not surprising that Indian partners of all the three companies decided to part ways. While Mahindra salvaged itself from the Ford fiasco, Hindustan Motors and Telco brought down their exposures in GM India and Mercedes Benz India,'' analyst add.

The expensive models targeted at the higher segments of the market turned outto be the cause of worries of these companies. Ford's Escort, GM's Opel Astra and Mercedes Benz's E2200 and E230 cost over Rs eight lakh while the market was ripe only for Rs 3-lakh models. ``Therefore, it was not surprising when Telco and Fiat managed to get over a lakh bookings for their models,'' say sources.

GM lies to capture No 1 position
WASHINGTON: United States auto major General Motors has admitted to having overstated the number of Cadillacs sold in December in order to beat Ford's Lincoln for the number one slot in the luxury car division."The number of Cadillac retail deliveries was inflated for December," Cadillac division general manager John Smith admitted in a contrite letter to Lincoln Mercury president Mark Hutchins.

"I sincerely apologise for the actions that led to the December report, and that it led to a lost opportunity for you and your dealers to celebrate a hard-won victory," Smith said in the letter released to the media yesterday.

Cadillac went into Decembertrailing Lincoln but overstated its December sales by 4,773 vehicles to give Cadillac a 222-vehicle lead over Lincoln. Smith's admission follows an internal audit. A GM spokesman told the media that ``appropriate disciplinary action'' was taken, but declined to disclose what action, who was disciplined and how. Hardball tactics to win sales contests are an almost annual ritual in the US Auto industry, the Wall Street Journal said adding it is an article of faith among many industry executives that being no.1 in any given category gives a company a marketing edge in a competitive market.

In Cadillac's case, the division's leaders rarely missed an opportunity, despite a decade-long decline in sales, to prove that Cadillac was still the top luxury brand in America.