Monday, 31 December 2007

Tata motors set to acquire Jaguar and Land Rover marques from Ford

Tata has emerged as the clear front runner to acquire the classic english marques from ailing Ford which is looking to curb losses by releasing the loss making brands. Ford however decided to retain Volvo for the present.

Two other companies have also showed keen interest, one of them Mahindra & Mahindra also of Indian origin, although Tata is the clear favourite after receiving approval from the unions in the UK.

So, what does Tata stand to gain from the deal?
In the long run, acquiring the two marques will improve Tata’s own offerings due to knowledge gained and share of expertise. In the meantime if they feel they can restore profitability of Jaguar it will be a bonus.
Jaguar and Land Rover also stand to gain cause they will be in the hands of a really large firm which has a lot of financial resources and so they have their best shot of success (i.e. retaining the objectives of their branding and remaining in existence!)

Its a risk for Tata, but we’ll never know what could have been if they don’t try, so Tata deserves credit for their bold moves; and 10 years from now it’ll be interesting to see what came of this deal, if the marques are still under Tata, and the progress that Tata has made in the other vehicle classes with it’s own offerings.

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