Jaguar and Land Rover will no longer have the support of Ford in several years time - meaning Tata will have to develop its own components or purchase them from a third-party. With the release of the new XF plus the development of several crucial models for both Jaguar and Land Rover coming up, Tata could be able to benefit from highly-regarded Daimler components and keep any issues of poor build-quality at bay.
While Tata has not approached Daimler in regards to buying components, Daimler has been keen to show its eagerness in the matter as it owns a 7% stake in the Indian company. Thus Daimler stands to benefit in two aspects, through both the sale of components and the increase of the value of its stake in Tata as time goes on. Daimler has also stated it currently has no plans to increase its stake in Tata, reports Auto Motor und Sport.
Sales of components have become a major revenue stream for major manufacturers as the global downturn in car sales continues, and Daimler is not the first to offer its German technology to lesser regarded companies. BMW has also been contemplating selling its much lauded engines and there has also been talks between Daimler and BMW to share technology and components in a bid to reduce costs.