Tata to Jaguar and Land Rover
January 31, 2008 by George Skentzos
Just as the brands were starting to turn a profit, Ford has decided to cut all ties with Jaguar and Land Rover when they are eventually bought by India’s Tata Motors.
Initially it was expected Ford would keep a stake in Jaguar and Land Rover to protect its supply contracts for certain components such as engines, however it seems this is not the case.
“There is no need for it. Ford really wants to concentrate on its North American operations, that is the whole reason why it is selling Jaguar and Land Rover.”
The Indian media are reporting that Tata Motors is preparing for an outright purchase of the brands, tipped to be worth between $1.5 billion and $2.0 billion.
“Ford has decided not to retain a minority stake, as it is convinced about the future development of these two brands in the hands of the Tatas,”
Ford has maintained a minority stake in Aston Martin when it sold the luxury carmaker last March, although Tata will continue to use Ford engines and other parts in the future, this is as far as Ford’s involvement will go following the sale.
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I wish tata the best of luck, I really like the look of the new Jaguar XF, hope they continue to come up with beautiful cars under their new owners.
I to wish them the best and all the employees in the UK busting a gut to make this work. Can’t somehow see TaTa going anywhere alone and being sucessful though. It requires major investment to continue to keep products alive and competative. Have they got the cash. Both LR and Jaguar are niche products with reletively small sales and currently not profitable, that why Ford sold them
As I’ve said before, Ford doesn’t know how to handle profits, other than to get rid of them as soon as they threaten to materialise.
As for what Tata will do with the brands, who knows. First off they should wave the Tata brush over LR and make them reliable for the first time :)
The Jags have recently revived their styling, I agree (would have died for an XJ6 series one at the time).
Maybe Tata will restyle them into their version of beauty, and sell millions of them in India and none to the rest of the world. Then again, it’s hard to be uglier than a Disco 3. Arguably the Sumo (strong resemblance to early Pajero/Jackaroo) looks tougher.
Of course, as with all other global mergers/takeovers, the objective is to have the “common platform” on which numerous models are based. So will LR receive the Tata Safari underpinnings or the other way around ???
Reckless1,
” First off they should wave the Tata brush over LR and make them reliable for the first time”.
Since when have Tata products been reliable?
I know Landrovers have had their problems… anyone who’s had a freelander will tell you that. But Tata’s expertise lies in making inexpensive vehicles, and we all know the lower the price, the lower the expectations of the buyer in quality and reliability.
What Tata does bring is cash, and lots of it. This and only this can fix the quality. Better engineering, quality control and design cost millions. Something Ford couldnt afford.
Anyway i wish them luck… they’ll probably need it.