Land Rover Soon to be under Tata
Friday, February 29th, 2008In the year 1989, Ford obtained Jaguar for $2.5 billion. When year 2000 arrived, Ford then purchased Land Rover for $2.75 billion. This year will see some changes as Tata Motors Ltd. takes over both Jaguar and Land Rover. Tata Ltd. is part of the Tata Group, one of India’s oldest and largest business companies. Tata Group is made up of 98 companies, operates in six continents and has seven business sectors under their wing. Tata Motors was one of the three bidders left until Ford announced that they wanted Tata Motors to handle their British units.
During the SEC filing last Wednesday, Ford had made a comment regarding the sale: “Any transaction that we enter into would be expected to close during the second quarter of 2008.” What Ford plans to do is to sell all of their stakes in the brands. Land Rover, together with Jaguar, is now seen as interference to the strategy of Alan Mulally, Chief Executive. His strategy is to focus on Ford’s core brand.
Roger Maddison, a national officer for the British Union Unite, had said, “Nobody foresees any major problems now; everything is pretty much done.” By March 5 this year, Tata and Ford could already be signing a memorandum of understanding. With this deal, both companies will become industrial partners for a couple more years. After all, it would take some time before Tata would be able to find a supplier who would provide them with what they need when it comes to the manufacturing of the vehicles. Specifically, those supplies are the engines and other key auto parts for the car brands.
source: The Wall Street Journal





