Indian giant buys Jaguar and Land Rover

Infinite Chaos · 03-26-08, 11:46 AM

Quote:

Tata buys Jaguar in £1.15bn deal
Car giant Ford has sold its luxury UK-based car brands Jaguar and Land Rover to Indian company Tata. Tata, India's biggest vehicle maker, is paying $2.3bn (£1.15bn) for the British brands after months of negotiations over price and supply relationships.

The negotiations started last June when Ford announced its intention to sell the companies as a package. Jaguar and Land Rover employ about 16,000 staff at UK plants in the West Midlands and Merseyside.

Although Land Rover remains profitable, Ford has never managed to make money from its investment in Jaguar. Ford has been forced to sell the two companies, based at Solihull and Castle Bromwich in the West Midlands and Halewood on Merseyside, in order to concentrate on its loss-making core US car business, which it hopes to turn around in the next two years.

The $2.3bn price tag is about half the amount Ford originally paid for the marques, leading some analysts to argue that the purchase was a mistake.

"How can you call it anything else?" said Erich Merkle, an auto expert for US consulting company IRN. "You have to cut your losses at some point. It's been draining them of cash and resources."

Ford sold its iconic Aston Martin marque to a UK-led investment consortium in a deal worth $955.2m last year.

No significant changes

The companies said there would not be any "significant changes" to Jaguar or Land Rover employees' terms of employment on completion of the sale. They said that staff, trade unions and the UK government had been kept informed of developments and supported the move.

Tata said the deal should be completed by the end of the summer, subject to applicable regulatory approvals. The purchase will give Tata the opportunity to expand its presence in the passenger car market beyond India and gives it the clout necessary to compete with international players.

More here at the BBC.

Ford continues on its loss making spiral and is having to jettison brands to concentrate on it's core structure. Meanwhile, Indian and Chinese giants buy up footholds into the EU marketplace. I can see more jaguars and rovers being sold around the world but I also see less and less American cars being available or even able to compete on the world stage soon.

jfuh · 03-26-08, 04:58 PM

Quote:

Originally Posted by Infinite Chaos

More here at the BBC.

Ford continues on its loss making spiral and is having to jettison brands to concentrate on it's core structure. Meanwhile, Indian and Chinese giants buy up footholds into the EU marketplace. I can see more jaguars and rovers being sold around the world but I also see less and less American cars being available or even able to compete on the world stage soon.

So Ford first looses Austin Martin and now Jag and LR are Indian? Sheesh. Why can't they sell their European cars over here in the States?

Infinite Chaos · 03-27-08, 04:52 AM

Not sure if you have the same exec/sales rep type car-driver as we have had here. Ford and General Motors (Vauxhaul) both have mid-range car models that are designed for motor fleet business. They are bland, safe and economic cars that have little character or appeal to the general domestic buyer.

Some jobs also come with a car as part of the package and the big two heavily discounted their cars for this market. I would imagine (guessing) that the average fleet car driver in the U.S. would want something with greater appeal and individuality than what we call "econobox" type cars.

Jaguars appealed to the middle management and execs while Aston Martins were for the super-rich who didn't need something as racy as a Ferrari or Porsche.

I'm interested in the Land Rover though - this is the UK army standard vehicle and while owned by Ford we knew an ally would supply/sell us spares in times of war. Wonder what the situation will be under Indian management.