Tata Confirmed as Jaguar - Land Rover Buyer
Filed Under: Corporate/Financial Industry Ford Jaguar Land Rover
Is the Indian company Tata now the new owner of Jaguar and Land Rover? That is the question we have been asking since Ford announced both company’s for sale in June, 2007. Now there is a ray of light as Tata has emerged in front of compatriot Mahindra, and American financial group One Equity. According to Automotive News, quoting Ford of Europe’s Chairman Lewis Booth, the American group has entered “focused and detailed negotiations” that aim to see Tata finally as the new boss in Coventry and Gaydon, England. Taking into account this statement, it is obvious the two companies are now just clarifying the details of the deal. As a matter of fact Booth’s statement is the first time Ford names with certainty a candidate for Jaguar and Land Rover.
Of course it is too early to consider Tata deal as a bargain, or any long-term negative effects on the British companies. However, Ford needs immediate cash to overcome losses, and Tata seeks to play the global game with Jaguar/Land Rover under its wings. For sure, Ford is losing two of the biggest brand names in auto history that ironically are now growing with fresh products such as the all new Jaguar XF, the XK, and the Land Rover Freelander II.
TATA??? Isn't that what you say, when you wave goodbye to someone or something? Oh well, may be quite fitting in the end...
hope TATA won't mess up both brands like GM did to SAAB.
hope TATA won't mess up Jaguar and Land Rover like GM did to SAAB
TATA? please don't....what is Ford thinking of....
How does TaTa utilize the two brands after they buy them out? If TaTa apeal that they are the owner of the two brands, thier brand value will sure be diluted, which is not beneficial for TaTa themselves. What TaTa must do is to express clearly how to handle the two brands after buy-out, i.e. TaTa will be simply a financial supporter but not a controller of product development nor market planner.
It's going to be hard for them to keep up with the way Ford managed these great british brands. Shame on the Empire buying in Prince Charles and his radical environmentalist accolytes' totalitarian bullshit (global warming and so forth). Tata should have acquired MG-Rover instead. Oh well, everything's said and done. Let us sit and wait for the BIG final collapse!
I bet TATA would do a much better job than what Ford did with them. Agreed TATA might not have a good reputation with its cars, but it also started with the car business about 10 years ago. Most prob TATA will just be a financial supporter and with TATA's financial backing, you can't go under.
I agree with Scuderia - Tata has much deeper pockets than Ford so is a better financial backer than Ford. I am sure JLR will be left to get on with things. And who says Tata has a bad reputation with cars?
"And who says Tata has a bad reputation with cars?" bristol411s3- ARE YOU KIDDING? It has worse than bad reputation; meaning that Tata has NO freaking reputation as a car maker. No one acknowledges their presence due to its incompetancy in car-making. Just read this review of one of their SUVs; http://www.whatcar.co.uk/car-review-summary.aspx?NEW_USED=1&MA_TYPE=1&MA=53&RT=249&Submit1=GO To quote its safety: Nothing beyond the bare minimum.
@autoque
dude.. just wait for a few more days, before Tata unviels an array of cars that r aimed for the European market.. then, lets speak!! :D n Tata does make some nice cars.. yes, i agree they have some flaws.. but they are being ironed out!!
n come on.. Tata is the best bet for JLR.. coz, Tata atleast is not making a 1.5b$ loss!! :D n yea, they r also working with Fiat n also have their It company, TCS working with Ferrari in F1.. now.. i'm sure that speaks for itself!! :O so, please dont under estimate Tata, just coz its an Indian company.. :O thats so lame! :D n if u think Indians cant head a company.. then, think again, Citi Bank, the world's largest bank.. Pepsi, n Mittal are all run by Indians!! so.. all u have to do is wait n watch rather than being this sceptical!! :D
I agree that Tata will be a much better financier than Ford, but my point was that Tata shouldn't be involved in R&D of Land Rover and Jaguar as Tata's technology in automobile is no where near that of European luxury standard; they are only just starting out as an international auto company. Plus I don't under-estimte Tata BECAUSE it's an Indian company. I've never made such claim. And again, I have never said or even thought Indians can't head a company. You keep putting words in my mouth dude.
hmm....tata DOES make good buses........... THE LAND ROVER BUS!!! :| with hill start assist and downhill assist... ohhh and 3 modes for 3 differant lands :P!! sounds good **eyes roll** jkjk... yea financial supporter is what they should be, nothing else please
Fiat too acquired prestigious brands like Ferrari, Maserati, Alfa Romeo, Lancia, etc. These brands have gained a lot from their acquisition and are on the top today. Fiat has kept out of the R&D and has just given moolah too support it. Obviously TATA would folllow the same model. It would only benefit them if they keeep these brands as authentic as possible. Its a win-win situation .
TATA PROBABLY CANT EVEN PAY FOR THIS WITH THIER CHEAP FUGLY CARS
Their cars may seem "cheap and fugly" but they sell by the Truckload in India, one of the world's most important up and coming car markets.
Besides, TATA is also the world's Fifth largest steel producer after buying the UK's Corus Steel (formerly British Steel) for a whopping £6.7 billion, three times the maximum expected price for Jaguar and Land Rover. I think they will fund the deal just fine!
no way better they fail so jags reputation isn't ruined
@autoque
oh.. the second para was general!! :D n i'm sure Tata would actually gain from JLR's technologies.. n not the other way round!! :D
marsman its not about the cars TATA makes. Its about the financial support. Plus Ford doesn't make great cars either. Atleast nowhere near to these marques.
yes I know ford is not good either but Tate with their cheap cars probably they wouldn't get a profit from thier big pieces of metal
Ford doesn't make great cars? Maybe in the US, but check out the euro Focus (funniest car to drive in its category) or the new Mondeo (most refined and better built among mainstream makers), and their great experience in motorsports. Who's gonna do the R&D now?
To autoque
There is no point saying that Tata know nothing about cars - this isn't true. The safety levels of its cars are "bare minimum", but India, which is primarily where the cars are developed for, neither has the same safety requirements as the rest of the world, nor does the market demand such things. They develop cars for that market and they are competitive at all levels. Who is stupid enough to think they'll start stripping stuff out of luxury cars developed for a completely different market?
They lack expertise in the luxury car market, but that is surely what they are buying? All this suggests they'll leave JLR to get on with things, helping out with finances and perhaps economies of scale in raw materials.
EXACTLY mate!!!! n i'm also sure that JLR would infact help Tata improve the quality of their cars!! :O n then evn the safety aspect of it could be brought in... unlike the European market, the Indian market is still growing n new!! n so the rules n laws would come up pretty soon!!
No company will want to go into a business venture without a purpose. if you look at TATA history, they have been producing trucks. Not very sexy but doing well overall in domestic and international market. This makes them cash rich. Their attempt on SUV and car may not be that successfull but they have cash. So buying JLR may be a strategic move for win-win situation. JLR can continue and TATA can leverage their expertise to buying their other range of cars. Beside that TATA has good internation reach that JLR can leverage. How successfull is the future... depend on how well everyone accepting the current and the future JLR cars...
Hmmmm..... sooner or later you will find Range Rovers that carry 50 passegers...on the roof and the sides
I?m a big fan of British car manufacturers and I must say that this makes me sad. I was about to get a Rang Rover until I read that TATA is confirmed to be Jaguar & Land Rover buyer. I cannot imagine my self paying $78,000 for a TATA sub-brand car. TATA is well-known with labor buses and economical cars while Land Rover & Jaguar are expensive luxury brands, it doesn?t seem so right. Anyways let?s hope that TATA doesn?t destroy Land Rover & Jaguar.
I cannot believe that Tata have the money to buy Jag and fund future development
I can't brleive you guys.. TATA WILL NOT HAVE ANYTHING TO DO WITH THE R&D. IT WILL JUST PROVIDE THE MONEY. NO MIX UP B/W TATA MOTORS AND JAG OR LAND ROVER. I BET NOBODY THOUGHT OF A JAGUAR/LR AS A FORD. SO PLEASE PEOPLE YOU'VE GOTTTA REALISE ITS ONLY FOR FINANCIAL SUPPORT. AND TATA IS PRETTY WELL-OFF. phew
NOBODY THOUGHT OF A JAGUAR/LR AS A FORD? Well, their modern engines were based on Ford technology to start with.
TATA! Please don?t mess the Range Rover reputation!:)