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Ford finally sells Jaguar Land Rover

March 27th, 2008 18 Comments

Ford Motor Co has finally announced today that it has signed a final agreement to sell Jaguar and Land Rover brands to India’s Tata Motors.

The sale of the two luxury marquees has been dragging on for almost a year with Tata outbidding all the rivals for a multi-billion dollar deal.

Ford now plans to focus on stabilising its global operations and making the most out of its platforms. The automaker calls it the “One Ford” global transformation.

Once the minor details are worked out, Jaguar and Land Rover will be in Tata’s hands by the end of the next quarter. Ford has disclosed the final sale price at around US $2.3billion. However Ford will still contribute around US $600 million to the Jaguar Land Rover pension plans.

“Jaguar and Land Rover are terrific brands, we are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata’s stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all.” said Alan Mulally, president and CEO, Ford Motor Company. “

Nevertheless, the link between Ford and its former subsidiaries will not be easily broken, Ford has agreed to supply Jaguar and Land Rover with powertrains, stampings and other vehicle components for a set period of time.

Ford will also supply environmental and platform technologies plus R&D, information technology, accounting and more.

“This is a good agreement. It provides the Jaguar Land Rover management team and employees with the assurances needed to maintain their focus on delivering the best results for the business, I am confident that, under its new owner, Jaguar Land Rover will continue to build upon the significant improvements and product successes it has achieved in recent years.” said Lewis Booth, executive vice president, Ford Motor Company, who has responsibility for Ford of Europe, Volvo and Jaguar Land Rover.

It will be interesting to see how these two brands will work when Ford no longer supplies the parts. The company’s credit division, Ford Motor Credit, has also agreed to continue financing for Jaguar and Land Rover dealers and customers for up to 12 months.

Not all at Jaguar & Land Rover see this as a bad thing, many insiders believe that under Tata control, they will feel a sense of freedom to develop their own stand-alone capabilities.

Both Tata and Ford were quick to point out that there are currently no plans for significant changes to Jaguar Land Rover employees’ terms of employment on completion.

As for Tata? Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said:

“We are very pleased at the prospect of Jaguar Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.”

No matter how you look at it, the future of Jaguar and Land Rover is exciting. There is the prospect for enormous success, or massive failure, only time will tell.

Here is a brief historical overview of Tata’s milestones:

1945 - Tata Engineering and Locomotive Co Ltd (TELCO) is set up as a locomotive maker at the end of World War Two
1954 - Begins making trucks after forming a partnership with Germany’s Daimler-Benz
1977 - Tata builds its first Commercial vehicles.
1994 - Begins making Mercedes Benz cars in India
1998 - Launches the Indica, the home made Indian car
2001 - No more work done with Daimle
2002 - Changes name from TELCO to Tata Motors Ltd
2003 - Announces plan to build world’s cheapest car, the Tata Nano for 100,000 rupees ($2,500 USD)
2004 - Buys up South Korea’s Daewoo Commercial Vehicle Co, and lists on the New York Stock Exchange.
2005 - Attains a 21 percent share holding in Spanish bus maker Hispano Carrocera SA
2006 - Begins work with fiat having signed a distribution agreement. Also enters into a venture with Brazilian bus maker Marcopolo
2008 - Acquires Jaguar and Land Rover from Ford

What do you think the future holds for the British brands?

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Land Rover aim to keep LRX interior

March 18th, 2008 10 Comments

Since the LRX concept made its official debut, the immediate consensus had been that Land Rover needed to put this car into production.

Now not only has a production model been approved, but early reports indicate it will resemble the concept as much as possible - including the interior.

Jaguar & Land Rover remain British at heart

March 7th, 2008 14 Comments

Indian manufacturer Tata Motors yesterday announced that it will respect the British heritage of Britain’s leading brands, Jaguar and Land Rover, when the it takes over as owner.

Tata also assured worried workers that no part of production or component sourcing will be transferred to India or any other country.

Land Rover LRX 2008 Geneva Motor Show

March 5th, 2008 No Comments

Land Rover LRX 2008 Geneva Motor Show

The LRX is described as a cross-coupe - smaller than a Freelander 2, it combines the benefits of a 4×4 with the luxury and presence of a much larger vehicle.

Land Rover LRX Black edition

March 2nd, 2008 9 Comments

Whilst Land Rover is still adamant that its stunning LRX Concept is just that - a concept, it has unveiled a second rendition of the minimalistic compact SUV.

This second LRX will accompany the original at the Geneva motor show, sporting a handsome gloss-black finish which perfectly compliments the wraparound canopy design and silver highlights.

Melbourne Motor Show: Land Rover LRX Concept

February 29th, 2008 4 Comments

When the LRX cross-coupe concept made its global debut at the Detroit Motor Show this year it was met with almost celebrity applause signaling a new path for Land Rover and their image as a ‘big’ car company.

Smaller and lighter than current models the LRX still shows signs of its’ heritage with such signature external design features such as the clamshell bonnet, floating roof and wheels-at-each-corner stance being retained.

Not only is the LRX a reduction in scale from traditional Landys, it’s also a big step down in terms of environmental impact with many fuel and emission reduction targets met paving the way forward for a company determined to stake its place in the environmental savvy future.

The concept vehicle includes 20-inch alloys, a luxuriously (and futuristic) interior and utilises recycled materials is many interior components including the roof lining and door inserts which are made from recycled plastic bottles and fibres.

The carpet too comes from sustainable sources and the leather used on the upholstery is vegetable-tanned for easier recycling. Side and roof windows are made from ultra light weight polycarbonate in a bid to keep weight, and thus fuel consumption, down as far as possible.

Younger buyers and women are the primary target demographic of the LRX which is a move away from Land Rover’s traditional audience in what’s seen as a broadening of their horizon.

Land Rover advanced designs director Julian Thomson hints the LRX , or a vehicle closely based on it is destined for production in three to five years.

He said the vehicle would retain traditional Land Rover strengths while reaching for new customers.

“The underlying message is wherever the car competes, it should have the best off-road performance in its segment,” he said.

It’s a great move and the vibrant, dynamic looks of the new comer are sure to be a hit with trendy, tech savvy SUV buyers wanting something a little sexier than your average tissue box on wheels look of a traditional SUV.

The cabin of the LRX uses exposed seat, instrument panel and roof structures to convey a feeling of space and freedom. Functionally though it loses none of the features expected from Land Rover and even includes such nifty extras such as a power-operated, horizontally split tailgate, removable speakers, multiple iPod docking facilities, and floating / folding rear seats that lay flat for greater luggage flexibility.

As for the all important power plant, the three door, four-seater coupe drives via a (hybrid) combination of a 2.0 litre turbo diesel engine and battery power (stored in a lithium-ion battery charged by a regenerative braking system). Emissions are claimed at 120 grams of CO2 per kilometre. Not bad! This figure actually undercuts the EU’s corporate average of 130 g/km proposed for introduction in 2012.

Capable of running on bio-diesel, and combined with the experimental Electric Rear Axle Drive, the LRX could reduce fuel consumption by almost one-third that of similar sized SUVs.

The afore mentioned axle system allows the LRX to run purely on electric power at low speeds which potentially improves off-road ability (through Land Rover’s Terrain Response System) because maximum torque is available from standstill.

While it’s all very exciting, a production version of LRX is still three years away, and according to Land Rover the fundamental specification - let alone a production green light - is still far from being confirmed.

If production gets the go ahead it will be priced as a premium vehicle with a $40,000 plus price tag likely on the entry level model.

CarAdvice will be bringing you an exclusive interview with Land Rover’s Julian Thomson soon.

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Land Rover LRX flies into Melbourne

February 5th, 2008 12 Comments

Land Rover has today announced it will air freight the stunning LRX concept into Australia this month for the upcoming 2008 Melbourne Motor Show.

Only the second concept car in Land Rover’s history, the LRX will arrive just weeks after impressing crowds at the Detroit Motor Show.

Tata to Jaguar and Land Rover

January 31st, 2008 4 Comments

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.

Jaguar and Land Rover profitable?

January 15th, 2008 5 Comments

It had almost reached the point where Ford couldn’t even give away Jaguar and Land Rover with the brands in dire straits financially, however a recent report has revealed the British manufacturers have significantly improved their bottom line.

Land Rover recorded a healthy profit of $1.2 billion in 2007, with Jaguar gaining significant ground, only $100 million in the red compared to a $500 million combined deficit in 2006.

Land Rover LRX Concept - 2008 Detroit Auto Show

January 14th, 2008 1 Comment

Land Rover LRX Concept - 2008 Detroit Auto Show

The Land Rover LRX Concept makes its official debut at the Detroit Motor Show.

Tata confirmed as Jaguar and Land Rover owner

December 21st, 2007 55 Comments

According to a report in Britain’s Birmingham Post newspaper, India’s largest vehicle manufacturer, Tata Motors, is the winning bidder in the auction for Jaguar and Land Rover.

The reports states that Tata will pay $1.67 billion AUD for the two Ford luxury brands. The blue oval has no plans to make an official announcement until early next year.