Tatas acquire Jaguar, Land Rover for USD 2.3 billion, My view.

Society Pakistan & World Affairs
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Creating history, India’s top corporate Tatas today acquired prestigeous luxury auto brands – Jaguar and Land Rover – from Ford Motor for 2.3 billion dollars, bringing to an end a stiff nine-month battle including with compatriot Mahindra and Mahindra.

Just a year after acquiring steel giant Corus for USD 12.1 billion, Tatas today announced the deal they signed with Ford, which on its part would chip in 600 million dollar towards JLR’s pension plan.

The deal was announced after protracted negotiations that Tatas had with JLR union workers.

“We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business,” Group Chairman Ratan Tata said after making the deal public.

“We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact,” he said.

The transaction is the culmination of Ford’s decision last August to explore strategic options for the JLR business as the company accelerates its focus on its Ford brand and “One Ford” global transformation.

“The sale is expected to close by the end of the next quarter and is subject to customary closing conditions, including receipt of applicable regulatory approvals,” the statement said adding the total amount to be paid in cash by Tata Motors for JLR will be approximately USD 2.30 billion.

At closing, Ford will then contribute up to approximately USD 600 million to JLR’s pension plans. PTI

  • I feel in this deal the amount (2.3 B$) is not important what is important is the total pension due that TATA needs to absorb.
  • TATA’s are not bringing any of these cars to India as of in near future
  • TATA will benefit from the transfer of technology
  • Two luxury brands with Indian co is remarkable ( West still think India as land of Snake Charmers )
  • I wonder how the western customer will response to cars (Jaguar, Land Rover ) made by TATA.
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Re: Tatas acquire Jaguar, Land Rover for USD 2.3 billion, My view.

Congrats to Indian business class to achieve this milestone.

No one can deny that auto market is one of the worst places to be in, if you don't have "reliability" or "pizzaz" associated with your name.

So far only two auto manufacturers have succeeded while selling luxury brands only. And they are BMW and to a lesser degree Daimler.

Tata can succeed. However Jaguar and Land Rover both suffer from reliability perspective. Especially Jaguar has become a dinosaur of the auto world. They talk about new models etc. And may be they are being tested right now.

BTW Jaguar tech is nothing to boast about. Not sure if Tata will gain anything "technological" from these brands.

But again, Tatas are shrewd business clan. I am sure they have something up their sleeves. And if they don't then they may have to sell this like Daimler had to pay to get rid of Chrysler.

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Re: Tatas acquire Jaguar, Land Rover for USD 2.3 billion, My view.

I think it is a remarkable decision made by TATA..,…but apart from that the main thing is will TATA be able to bring Jaguar to a place where Ford could not take it:hmmmm:

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Re: Tatas acquire Jaguar, Land Rover for USD 2.3 billion, My view.

Frankly Tata's are a better group than Ford, so if anything, people are going to feel better about the cars than before.

But i do think Jaguar is not a good investment

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