Posted on Wednesday 26 March 2008
After months of speculation, leaked information and hearsay, Ford has finally confirmed it will sell its Jaguar and Land Rover operations to India’s Tata. The sale is expected to close by the end of the next quarter and still requires approval from several European regulatory bodies, but otherwise the deal is as good as done.
The total amount to be paid in cash by Tata for Jaguar and Land Rover upon closing will be approximately $2.3 billion. At closing, Ford will then contribute up to $600 million to the Jaguar Land Rover pension plans, which will leave the Blue Oval with about $1.7 billion once the dust settles.
As part of the deal, Ford will continue to supply Jaguar and Land Rover with powertrains, stampings and other vehicle components, in addition to several environmental and platform technologies. Ford has also committed to provide engineering support, including research and development, plus information technology, accounting and other services.
Speaking about today’s agreement, Tata boss Ratan Tata expressed his excitement surrounding the acquisition, while also confirming his company’s long-term commitment to both brands and a hands-off managerial approach. “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,” Tata commented.
Unions are also happy about the announcement as the deal guarantees full employment for all staff.
For consumers it means support for Jaguar and Land Rover’s current product plans, while providing both firms greater freedom to develop their own stand-alone capabilities in the future. The newly found financial backing of Tata also ensures Jaguar’s new model onslaught is almost guaranteed, meaning we can expect to see the new F-Type roadster, next-gen XJ and rumored XF variants all make it to production over the next couple of years.
Landrover and Jaguar may well be financially better off with a successful company like TATA running it, but I’m afraid with the general public perception of TATA, Landrover & Jaguar’s image is gonna hurt in a big way. I sure as hell won’t take the chance of buying either brand for a good while.
Jaguar and LR might just get a new perspective, energy, horisons, and an increased English personality, as well as the new XF.
Elclair: A spanish company now owns British Airports and Midde Eastern investors own a majority of Aston Martin. Like you I was once skeptical about Tata buying JLR but they have said that they will continue building in the UK and develop even more products. So what’s not to like?
Actually, elclair, the general public perception of Tata is that it’s a successful, wealthy, well-managed, innovative business; that, and Tata’s commitment to let J-LR’s current management team continue doing the good job they are doing, and its willingness to fund new models in both brands, can only help J-LR’s image and sales.
What is everyone saying? That J-LR management is doing a good job? RUBBISH!!! Jagauar is a ship without captain. There is no central guide to direct the affaires of the company. Committee ridden at every level of the company is sinking the company. Tata is the biggest fool in the automotive world! What did he do to help Rover-MG when he was on the board? Nothing! He is a bigger treasure hunter than Ford when they bought Jaguar in 1989. He has no ideas himself just his desire to buy up other companies hoping to make a profit. Rover-MG survived with him? NO! The solution to this mess of the British automobile problem is to launch a new British Leyland Auto Group with funding provided by the state and management in private hands, all of whom would be classic British automobile enthusiasts with a good taste in design. This way the company can be restructured around a small group of designers and engineers, all carefully chosen as not to repeat the IAN CALLUM DISASTER that was Jaguar with the sad departing of Geoff Lawson. God Save Jaguar! God Save Britain´s Automobile Industry! God Rest Sir William Lyons!.
Jaguar should have been bought out by Daimler or BMW, but neither one would risk losing sales for Mercedes or BMW.
jaguar is sold is ok but land rover!