PDA

View Full Version : Ford to seal $2bn Jaguar-Land Rover sale to Tata



The Cosworth
03-25-2008, 07:39 AM
Ford's sale of Land Rover and Jaguar to Tata, the Indian conglomerate, could be finalised as soon as tomorrow and fetch upwards of $2 billion (£1 billion).

TV reports in India suggest the price for the British-based luxury marques will be $2.65 billion, while senior tax advisors working on the deal would confirm only that the deal will fetch "at least $2bn".

The final sums involved are likely to be significantly more, however, after factoring in Ford's contribution to pension scheme deficits and its commitment to supply expensive engine and transmission systems to Tata for years to come.

It is understood that Tata has raised about $3 billion to fund the deal, including cash to cover working capital requirements.

It is also understood that Land Rover and Jaguar employees will be briefed on their futures soon after returning to work following the Easter break.

Tata has agreed to keep intact the three manufacturing facilities at Solihull, Castle Bromwich and Halewood, where Ford employs 13,500 people.

Unions have been informed that there will be no redundancies.

Ford will hope that a sale of the profitable Land Rover and the loss-making Jaguar will draw a line under a painful period.

It put the two divisions up for sale last year after posting a $12.6 billion loss, the largest in its 103-year history.

Last year, Tata, whose interests run from tea plantations to IT outsourcing, confirmed its global status by buying the Anglo Dutch steelmaker Corus for £6.2 billion.

Its international buying spree has also included Tetley, the tea maker, Daewoo's commercial vehicle arm and the Ritz-Carlton hotel in Boston.

Winning the Jaguar and Land Rover brands, however, would open a radical new chapter in the company's history.

Although Tata's trucks dominate the highways of India and the company has made passenger cars since 1991, acquiring the marques would represent a foray into uncharted luxury territory.

Ratan Tata, the chairman, has acknowledged the image disparity that Tata would face in owning two of the industry's most esteemed brands while producing what it claims will be the world's cheapest automobile, the one-lakh Nano — a lakh is 100,000 rupees (£1,200) — which was unveiled this year.

But he has brushed aside concerns suggesting that Tata is merely emulating proven strategies.

"Toyota created Lexus, Nissan has Infiniti," he recently told The Times

"No one is saying, 'How can BMW handle the Mini?' but they've made a huge success of it. So why is it impossible?"

Ford, which has also been in talks with the Government over the future of Jaguar and Land Rover, said in November that it expected to wrap up a sale early this year.

It is under pressure to pay down its debt mountain, which Fitch, the ratings agency, estimates has grown by more than $21 billion since 2001.

Tata and Ford refused to elaborate on the state of their talks.

Both sides have said that they have been pleased with the progress of the negotiations since Tata was named preferred bidder for Jaguar and Land Rover in January.

/////AMG
03-25-2008, 07:49 AM
Hmm quite interesting. If Tata do buy out Jaguar & Land Rover I wonder what they would do, since they don't actually make luxury cars. But Tata + Land Rover doesn't seem too bad.

PS. your title is shit

Kloubek
03-25-2008, 08:08 AM
Something about Tata running a luxury division that gets me a little concerned. Hopefully quality control will not suffer, or Jaguar will regain their revolting reliability moniker.

DNSRadio
03-25-2008, 08:26 AM
i think TATA just going to have control stakes in the two companies.
i think that Jag and Rovers quality will still be the same just under different ownership.

Tata trucks have been running in India for years on end now, and they dont seem to be slowing production either.

I think that once Jag and Rover come into the hands of TATA, there will be a giant uproar at first in the industry due to all the smoke in the air and once it all settles down i think we can expect some pretty extrodinary vehicles from both Jag and Rover.

rage2
03-25-2008, 08:33 AM
India's taking over. Tata is looking at buying out Ferrari from Fiat too.

The Cosworth
03-25-2008, 10:13 AM
Originally posted by /////AMG
Hmm quite interesting. If Tata do buy out Jaguar & Land Rover I wonder what they would do, since they don't actually make luxury cars. But Tata + Land Rover doesn't seem too bad.

PS. your title is shit

ps I copied it from the news article

01RedDX
03-25-2008, 11:54 PM
.

boxer23
03-26-2008, 12:57 AM
Originally posted by 01RedDX


I love the fact that some of the top British brands are now Indian owned, I'd say it was well-deserved.

What comes around goes around....hahah I keed I keed;)

on another note: Tata can and will probably make record sales with both companies. And be prepared to see another Indian Auto Manufacturer get its glory, Mahindra & Mahindra will start selling bargain-basement suv's in US.

NRGie
03-26-2008, 01:12 AM
Originally posted by Kloubek
Something about Tata running a luxury division that gets me a little concerned. Hopefully quality control will not suffer, or Jaguar will regain their revolting reliability moniker.

Jag and Rovers have been shit in the past few years anyways so Tata taking over doesnt make much of a difference in quality.

Car and Drivers least Reliable cars of 07: LAND ROVER, JAQUAR, and MERCEDES BENZ

Inzane
03-27-2008, 03:21 PM
Originally posted by rage2
India's taking over. Tata is looking at buying out Ferrari from Fiat too.

Oh God... No! :eek:

forkdork
03-27-2008, 03:22 PM
Originally posted by Inzane


Oh God... No! :eek:

They have already been working as consultants for the Ferrari F1 team.........

EK 2.0
03-27-2008, 05:18 PM
INDIA ZINDABADH!!

R!zz0
03-27-2008, 06:45 PM
I don't get it. Why didn't the British buy back their own vehicles? :confused:

/////AMG
03-28-2008, 04:24 AM
No £££?

Mr_ET
03-28-2008, 08:23 AM
Originally posted by DNSRadio

i think that Jag and Rovers quality will still be the same just under different ownership.


So you're saying it will still be dismal?

EK 2.0
03-28-2008, 11:44 AM
I find it very interesting that India is playing a slight psychological game.

I mean here they are inking deals to buy in very by nature itself British cottage industries. It wont be long now till they own Buckingham palace and charge Queen Elizabeth some rent haha...

dino_martini
03-28-2008, 07:58 PM
Originally posted by R!zz0
I don't get it. Why didn't the British buy back their own vehicles? :confused:

There is no one to buy them.

Anyone thinking this is good:

http://www.youtube.com/watch?v=m5402sXq21Q

Watch that clip until they talk about the Tata Nano.

Proboscis
03-29-2008, 01:25 AM
49cc is the key. I would drive a Tata Nano.

jdmakkord
03-29-2008, 10:29 AM
Haha I roll a Tata Sumo back there, maybe they'll come up with a better option comfort wise like a rover, without the reliability problems:rofl:

nismodrifter
03-29-2008, 12:08 PM
I'd so rock a Mahindra Scorpio haha. I've seen some GANGSTER looking ones in India that I would drive without question. Black w/tinted windows on wide 20" wheels.

INDIA FTW YO

Revhard
03-29-2008, 05:55 PM
Competition is a good thing. Maybe they won't try to charge so much for the smart car over here if Tata brings a micro-car.:thumbsup: