Tata to Win Jaguar & Land Rover Battle
By Clinton Deacon
December 17, 2007 11:33 AM
Filed Under: Corporate/Financial, European, Ford, Jaguar, Land Rover
After 6 months of negotiations the battle for Land Rover and Jaguar has been whittled down to three serious bidders: Tata, fellow Indian car group Mahindra, and American buyout group One Equity, and Ford is likely to name Tata as its preferred bidder in the next couple of weeks.
Tata will pay in the region of £1 billion for the British marques although they will still have to negotiate a seperate deal with Ford for the continued supply of their engines. A settlement will also need to negotiated with the pension trustees.
The three UK factories will remain safeguarding 15000 UK jobs, although we won't be surprised if production is slowly shifted to India.
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Comments
Keeping JLR within Ford would have been the best option, but of the three shortlisted Tata is the safest pair of hands. Their purchases of Corus and Tetley Tea in the UK haven't been so bad.
I would have loved to have kept any of our former motor companies British, but there is no one who can afford to keep them.
Frankly, JLR in the wondership of deep pocketed Indians sounds a better option than near bankrupt Americans. And don't forget Tata has been producing cars for years and also has BIG steel interests, so it is not as if they aren't well positioned.
lets see - Jag and LR were not exactly "cash cows" for ford so the issue of their sales going down because they are now to be owned by an Indian company should not have much of an affect. Cerbus bought Aston Martin, and last I heard their sales are growing. As far as I know Cerbus (I think thats what its called) does not have any motoring history.
Atleast we can be certain that we wont be getting re-badged daewoos as would be the case if an american company bought the two brands...
If people refuse to buy the car because its now owned by an indian company, well thats fine, the asian market is strong and it might actually sell more cars - seeing that we dont have too many environmental legislations just yet and jaguars and LRs' are not particularly famous for their green credentials.
n the company that owns Aston Martin is Prodrive!
well i really thought u were just doing some biased talk, like how many here r!!!
Although I liked LR3 very much, the change has already begun when BMW bought LR. With the current running costs of luxury 4x4s and expectations of the customers, LR was not satisfactory for the new owners. customers demand cheaper fuel costs with the highest gadgets, luxury, and design that attracts the others on the road when buying a high end SUV.
that was not once the aim of LR when they first produced Series. Remember Range Rover was manufactured just to get the market back from Toyota in luxury SUV in mid 70s.
So in short, who ever want to buy LR or another brand, they are free to do. That car will not have the spirit of his grand parents anyway. that's not the LR we loved.
It was once meant to be simple, working under any condition either dry or wet. It should take you anywhere and could be maintained easily. Instead of that computers with flashing lights every 15 seconds.
I'll keep my disco as long as possible; not sure future LRs will make me enjoy the life that much.
One life, live it.
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I fear this is really the begining of the end for Jaguar, and what a shame, they are such a great car company, one of my favorites.