Tata Buys Jaguar, Land Rover for $2.3b

http://automotive.speedtv.com/article/tata-buys-jaguar-land-rover-for-23b/

The sale of Jaguar and Land Rover has been completed following the finalization of a complicated deal between Ford and India’s Tata Motors.

The Indian conglomerate has borrowed $2.3 billion to buy the two brands, but maintains that it will not move production of Jaguars or Land Rovers to India, and will respect the brands’ British heritage.

Tata chairman Ratan Tata confirmed his company will stick to the five-year investment plan for the UK factories in Halewood, Solihull and Castle Bromwich. Announcing the deal, he said:

“We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavor 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.”

Union worries about job losses have been partially allayed by the five-year promise and assurances that Tata will continue to use Ford-supplied engines. Many of Jaguar and Land Rover’s engines are made in Ford’s Dagenham and Bridgend factories in the UK. Ford will also transfer $600 million to the Jaguar and Land Rover pension fund.



Ford’s Executive Vice President, Lewis Booth, told Autocar that Ford will help Tata to integrate green technology into the Jaguar and Land Rover ranges, and also that the engine supply arrangement is a long-term deal, saying that “Tata is really committed to the business and really committed to Britain.”

Booth also confirmed that Ford is not maintaining any stake in Jaguar / Land Rover, in contrast to the 15 percent holding it maintained in Aston Martin when it sold the company last year.

Jaguar Land Rover CEO, Geoff Polites, welcomed the formal announcement of the deal by saying:

“Jaguar Land Rover’s management team is very pleased that Ford and Tata Motors have come to an agreement today. Our team has been consulted extensively on the deal content and feels confident that it provides for the business needs of both our brands going forward.”

Well, there goes the neighborhood!

And that was pretty much what everyone said when Ford first took Jaguar over.

The reality is that Ford massively improved Jaguar's quality control, upgraded its design and engineering, and made it into a very reliable brand. As a current 2006 Jaguar owner I am a little bit concerned, but given Ford's financial health these days, Tata is probably a stronger owner than Ford.

Where would Jaguar be if Ford goes bankrupt?

bite your tongue!!!!!

Ford may have improved the quality but, IMHO not the looks.

Jags just are not what they used to be in the looks catagory.

I don't notice them like I used to....they blend in.

Ford may have improved quality, but boy...are they a bitch to do anything on...even checking the air filter is a big deal.

I have to agree with you on the new XF, at least. It looks like a Lexus and has none of the traditional Jaguar styling cues - not even a leaper!

I do like the looks of my X-Type station wagon and enjoy having such a rare model. Hardly a week goes by that someone doesn't do a double-take and ask me "Is that a custom model? I never knew Jaguar made a wagon".

don4975 Wrote:

The 2.3 $Billion dollar sale sure did wonders for their stock - NOT! Even with the stock in single digits (down from 30 something like 5 years ago), I'll bet the big cheeses at Ford are still getting their huge salaries and huge bonuses - nothing like receiving pay for performance. I have little sympathy for them, and what's sad is that I own a LOT of Ford stock....sucks for me.

http://www.nyse.com/about/listed/lcddata.html?ticker=F