The Jaguar and Land Rover deal has been sealed, and the two companies go to Tata Motors, which will pay US$2.3 billion for them. As part of the deal, Ford will inject US$600 million of the US$2.3 billion into the two companies’ pension funds, leaving about US$1.7 billion remaining for Ford’s coffers. Ford will have no stake in the companies after the sale is completed.
Most of the management team will be retained, and Ford will continue to supply Jaguar and Land Rover with powertrains and technology for the time being, depending on existing supply agreements. Ford Motor Credit Co will also provide financing for Jaguar and Land Rover dealers and customers for the period of up to 12 months. The deal includes the Rover, Daimler and Lanchester brand names.
Tata Motors says it was confident this investment would have a positive effect on its balance sheet in the long run. Shareholders do not seem to share these sentiments as Tata Motors shares dropped as much as 7.3% yesterday, finally settling on a 3.6% drop at the end of the day as analysts says the deal will be a strain on the balance sheet. As for Ford, the money will help it focus on turning around its North American operations, which are currently operating at a loss.
The other bids for Jaguar and Land Rover are former Ford CEO Jacques Nasser’s One Equity Partners, Ripplewood, and Texas Pacific Group, which was advised by Bob Dover, CEO of Jaguar and Land Rover between 2002 and 2003.
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well, finally the deal is made. All the best to TATA becoming one of the world leaders in Auto manufacturer.
Tata introduces the Nano and later bought Jaguar and Land Rover as publicity stunt disguise as business strategies. Both doomed to fail. ohh.. from my crystal ball.
well, we just see what hapen in the future. i’m sure mr ratan tata will try his best to manage these two big names in the automotive industry..
TATA + Land Rover= tata rover
Tata shud promise cheaper jags and landie
Good job Tata!! Hope that Jaguar can be as popular as Mercedes-Benz…
Every car manufacturer that have bought Jaguar and
land rover got burnt.
let’s see how long tata last!
Maybe Tata got the ‘cost advantage’ that can help revive the ailing Brit carmakers. Ford failed to squeeze profit out of Land Rover & Jaguar because of its failure to control costs, despite there have been some platform sharing & technology transfer. Similiar to Rover acquisition by SAC, I don’t expect that Tata can increase the brand’s popularity worldwide. Other than fresh capital injection & access to cheap labour, there’s little else that Tata can offer.
Not all premium carmakers enjoy good profit margin despite the strong brand & quality. There have been speculations that Ford may sell Volvo too. Read this: http://www.reuters.com/article/businessNews/idUSL2836370120070528?feedType=RSS
make the price of Jaguar and Land Rover more affordable, please…..
but of course must maintain quality….
Proton should have bought them
lalala
Tata Nano will have its varient
Nano XKR which hav 420hp
and
Nano Range Rover which can go off road
under the same Tata Nano shell~~
I quite like the prospects of Land Rover and Jaguar. I believe that Land Rover has been profitable for the last three years and their 4X4’s are still the best around. And check out their new designs coming out, very cool. As for Jaguar, the perennial loss maker? I think their fortunes are going to turnaround quite soon. Look at the XF, an undoubtable success so far. And if you look at their upcoming cars, they look really nice too. If Tata leaves the guys at LR and Jaguar to do their stuff and provide them with the financial backing to do so, I would say the future is quite bright for these two brands.
Wow 2 buah sekaligus eh? Hehe hope Tata will have a big improvements with landrover and jaguar’s technology
Only efficiency, cut cost, more working hours etc
Another story of former british colonial state buying British icons. I just waiting when TATA decide to sell those two companies for 1 pound maybe. :-) Think about it. Ford is the company who benefit in this transaction more.
What the … TATA buough ~ Jaguar & Land Rover … almost the world 2 expensive brand … worldwide Jaguar & Land Rover ?? or Malaysia only ??? really shock for other … even the P1 also can’t affort to chery …
hahaha…no need P1 buying anything.
Many times before, proton got bailed by the GOVT after rugi here and there. Sooooo shameful- “Big boy” and still ask money from “papa” (GOVT)…and then bought a stupid ailing bike company.
TATA will come up with lousy JAGs and LAND ROVER TOY CAR, look at their history, bought over ROVER and came up with low quality hatch back, man….. i can’t imagine, unless they still remain those brilliant European Engineers….or else it like hiring roti canai and naan maker to assemble a car….just don’t ruin JAGs and Land Rover, ok…. stewpid american (ford)…..
I don’t think TATA can turn Land Rover and Jaguar to profit. If Ford can’t do it no one can….. so Bye Bye TATA.
Buy an XKR you will get a Tata Nano for free… Or maybe two, or three…
Buy an XKR.. Get a Tata Nano for free.. Or maybe two, or three…
Roti Naan said,
March 29, 2008 @ 10:35 am
hahaha…no need P1 buying anything.
Many times before, proton got bailed by the GOVT after rugi here and there. Sooooo shameful- “Big boy†and still ask money from “papa†(GOVT)…and then bought a stupid ailing bike company.
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the post is about TATA buying JAG and LAND ROVER..
and suddenly here comes some basher with no points at all..
pity you..
haha..the irony it that now india owns the once proud british badge
more and more british brand sold to oversea company…
MG, Rover, Lotus, Jaguar, Land Rover…the list goes on…
who next? aston martin? hahahaaa….
i think aston martin can survive…it is not a mass production company…so…it is not a problem 4 them…they hv their own target etc…jz wait and c wat tata can do with both big boy…another news is fiat will joint venture wit tata to gt d jaguar xpert on rwd and develop for their upcoming alfa 169 model…
roti naan, you should use your brains before bashing if you have any. even when proton were losing hundreds of millions in 2005 up till mid 2007, there was no govt bailout. instead, the company was restructured, and better more ‘humble’ models were introduced, and are selling well. looks like proton are pulling themselves out of the hole already.
and seriously, to those asking for “cheap jaguars”.. that would be the single most dumb thing to do. supposing tata bought mercedes tommorow, should consumers also expect “cheap mercedes cars???”
those cars are priced high, because they are considered premium cars. their customers expect to pay higher for something they perceive as having higher values than other ‘regular’ cars.
likewise, in the VW stable, you have Seat and skoda, priced in the lowerend of the market, and then you have golf, in the mid to low end.. then you have audi, priced at bmw levels ..etc.
you dont buy jaguar and then price is like a tata. there is such a thing as market segmentation.
likewise, you dont sell lotus cars at proton prices just because proton bought lotus.