Twin British prestige marques shaping up for sale this week at £1 billion
17 December 2007

There are gathering signs that Ford will announce the identity of the new owner of Jaguar and Land Rover, the “twinned” British prestige marques it is selling for $1.5- to $2.0 billion, within the next two or three days. Ford CEO Alan Mulally has already said the news “could come” before the end of the year.Other Ford sources close to the deal say the announcement would have to happen before Thursday to give Ford bosses time to inform employees and Wall Street before the Christmas break. Failing that, word would have to wait for the New Year – but Mulally is known already to have scheduled “heads up” meetings with selected media at the Detroit motor show in the middle of January.

The bidders

Most experts believe the Indian conglomerate Tata, which already owns British Steel and Tetley tea, leads a field of three preferred bidders that also includes the Indian group Mahindra & Mahindra, and the US buyout firm, One Equity Partners.Tata has been making its own cars and trucks for years, specialising until now in low-cost vehicles. Its 69-year-old chairman, Ratan Tata, has already announced plans to launch a 100,000 rupee (£1200) people’s 'lakh car' next year, designed to attract poorer lower-income Indians who presently use small motorcycles, often to transport whole families.Jaguar and Land Rover's UK union bosses have so far backed a Tata takeover of JLR as “the lesser of two evils”, believing it to be the stronger of the Indian bidders, and more likely to preserve JLR jobs for the long term than One Equity, the US-based buyout group.They have reservations, though, believing Tata will have much to learn about preserving the mystique and positioning of two prestige car brands, and are also concerned that Tata may source more parts from overseas, or even move some manufacturing to India.

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Comments
4

19 December 2007

It won't work. Who wants a Tandori Jag?? It'll pale by comparison to the German marques with their credible heritage still in tact. They're European marques. Bently and Rolls remained European but there was a question whether German ownership would be accepted. It has been, but an Asian Jag? What a stupid decision - the most recent of many by an inept Ford management. Had they asked we Jag owners rather than the accountants and unions, they would have learnt that we'd rather Jag died a dignified death with the possiblity of rising in the future than to have the mystique destroyed altogether. I've lived in Asia so I can't be accused of being anti-Asian, but the Taj Mahal wouldn't inspire the same awe if it were transported to Blackpool. And nor will the Jag and Land Rover duo prosper under an Asian owner. It's a shame the British government didn't see fit to buy back the last potentially British owned major motoring icons. I wish I'd stuck to the Audi and never got hooked on the Jag...

kam

19 December 2007

Had they asked we Jag owners rather than the accountants and unions, they would have learnt that we'd rather Jag died a dignified death

What a load of cr@p if `YOU¬ Jag owners had bought a few more the company wouldn`t be in such a state.

The indians are the way to go, the future is east, we and the yanks are a spent force. Tata is huge they have the money to do justice to jag and LR their purchase is not funded by rights issues venture cr@p or worthless bits of paper but real cash.

19 December 2007

[quote Expat26]

It won't work. Who wants a Tandori Jag?? It'll pale by comparison to the German marques with their credible heritage still in tact. They're European marques. Bently and Rolls remained European but there was a question whether German ownership would be accepted. It has been, but an Asian Jag? What a stupid decision - the most recent of many by an inept Ford management. Had they asked we Jag owners rather than the accountants and unions, they would have learnt that we'd rather Jag died a dignified death with the possiblity of rising in the future than to have the mystique destroyed altogether. I've lived in Asia so I can't be accused of being anti-Asian, but the Taj Mahal wouldn't inspire the same awe if it were transported to Blackpool. And nor will the Jag and Land Rover duo prosper under an Asian owner. It's a shame the British government didn't see fit to buy back the last potentially British owned major motoring icons. I wish I'd stuck to the Audi and never got hooked on the Jag...

[/quote]

How do you feel then when you use Mondeo bit's and bob's on your Jag then?

21 December 2007

[quote kam]

What a load of cr@p if `YOU¬ Jag owners had bought a few more the company wouldn`t be in such a state.

The Indians are the way to go, the future is east, we and the yanks are a spent force. TATA is huge they have the money to do justice to jag and LR their purchase is not funded by rights issues venture cr@p or worthless bits of paper but real cash.

[/quote]

Agreed, had the management tried to appeal to a younger audience they may have proved to Ford they can be successful. However they went ahead and gave us the granddad chasing 'S' type. I'm all for heritage, but you have to keep an eye on the future and the demographic you want to be appealing to.

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