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Rover, Jaguar Expected To Be Bought By Indian Automaker Tata Motors

Jaguar_XK.jpg It looks like Ford's premium brands, Jaguar and Land Rover, will end up in the hands of a company rabidly trying to both seal a deal to boost national pride as well as to develop and promote a $2,500 car. Ford Motor Co. is expected to announce this week that Tata Motors is the preferred bidder for the two companies. A final deal is anticipated in early 2008, with Tata expected to pay around $2 billion to acquire both companies. Now there's just one final question: should the $2,500 car be a Rover or a Jag? [Reuters]

10:00 AM on Mon Dec 17 2007
By Eric Tingwall
1,422 views
40 comments

Comments

  • Image of Al Navarro Al Navarro at 10:08 AM on 12/17/07 *

    If a Jaguar replaces Chiranjeevi's horse, this is a sign of the end of days.

  • ...and with one final move, Ford delivers the death blow for both companies. Mission accomplished.

  • Jaguar needs to make one of these, a nice replacement for the X-type.

    [k43.pbase.com]

  • That's old news.
    But good news for both brands, instead of going (further) under with Ford, they will become part of one of the biggest growing car brands in the world.

  • Lotus is thriving under Proton's leadership, yet no one here would want to drive a Malaysian-spec econobox. I see no reason why things couldn't be the same for Jag and Land Rover.

    On a completely unrelated note I was passed by a black Audi S5 this morning, and I'm a believer.

  • @sos10:
    Say what you will about Ford's product planning for Jaguar, but at least they made them reliable and somewhat worth owning.

    I'd much rather own a current Jag than one made from the hideous Tata parts bin that shares a showroom with the World's Cheapest Car.

  • Image of danio3834 danio3834 at 10:39 AM on 12/17/07 *

    well, thatll just be the end of Jaguar.

  • @danms6: That raises an interesting point: Tata has neither the R&D commitment nor the deep parts bin that at least kept Jag/Rover afloat at Ford. Tata's premier Indigo sedan has tubes in the tires.

  • Image of UDMan UDMan at 10:45 AM on 12/17/07 *

    Well, at least Jaguar and Land Rover will both become audacious Tatas!

  • "...with Tata expected to pay around $2 billion to acquire both companies."

    How much did Ford pay for Jag and LR?

  • Image of UDMan UDMan at 10:54 AM on 12/17/07 *

    Looks like Ford Purchased Land Rover for 1.8 Billion Sterling in 2000 (around 3.6 Billion Dollars), and Purchased Jaguar for 2.5 Billion Dollars. So Ford lost over 4 Billion Dollars without the cost of running the companies.

  • $2 billion is pocket change these days. Heck Google has something like $12 billion in CASH just laying around and Microsoft has like $26 billion and change laying around. I'd love to see one of those companies buy Jaguar/LR.

  • Image of Rust-MyEnemy is stll out there! Rust-MyEnemy is stll... at 11:51 AM on 12/17/07 *

    When I read the headline I thought "surely China Brilliance haven't had enough of Rover already..." Then I realised you weren't talking about Rover at all, but Land Rover.

    But hey. Does this mean we can soon expect every Jag and LR to have a gold-plated tissue box and beaded seat-covers?

  • So if I got a Jag or LR and called up road side assistance, is my call going to be routed to Bombay?

  • @hockyis1: Insert hackneyed bit about cars crashing and needint to be rebooted three times a day here...

  • @M0L0TOV: yes, it will continue to be routed to Bombay. This is one thing that will remain the same after the deal...

  • $2500 car and $50K+ Jags and Land Rovers.

    I'm glad Tata is keeping a narrow business focus.

  • @UDMAN: I believe you mean a pair of bodacious Tatas...

  • Jaguar has been coasting on it's reputation and heritage for the past 40 years. English and American mismanagement have left Jaguar in a sorry state. I really think that Indian ownership will save this company.

  • Image of NovaloadMissesPolar NovaloadMissesPolar at 12:53 PM on 12/17/07 *

    Well, there goes customer service!

  • They are going to kill the company, no one is going to want a Jag/Land Rover made by an Indian company that makes shitty cars. This is a sad, sad day.

  • Tingwall. Tata is not buying Rover/Jag to boost national pride. It's a business decision, not a patriotic one.

    Danms6, Badcofascism, Clashtastic: Brandegee is right. Proton owns Lotus and that doesn't diminish its allure. Any car nut should lust after the diminutive racer (more-so recently).

    And obviously, Jags and Land Rovers wouldn't share parts with Tata econo-cars, what an asinine thought. If anything, manufacturing processes and QA from Jag/LR would filter down to Tata. Tata doesn't need a parts-bin to keep LR/Jag going. As a luxury marque, LR/Jag should be using bespoke parts anyway (not Ford buttons, d'oh).

    India has a fledgling automotive industry, not a stupid one. Besides, the Ambassador is probably the greatest car ever.

    Think, then post.

  • Image of NovaloadMissesPolar NovaloadMissesPolar at 01:50 PM on 12/17/07 *

    @5cents: OK, I thought and now I post: It is hard to see how a "fledgling automobile industry" is going to make a quantum leap to the head of the class.

  • TTFN!

  • @5cents:
    The Ambassador? Really?

    The Hindustan Ambassador?

    Maybe you should stick to calling people idiots.

  • BY CHARLZR AT 12:21 PM @UDMAN: I believe you mean a pair of bodacious Tatas...

    CHARLZR FTW!!!! :)

    -Somewhere right now, Winston Churchill and Queen Victoria are spinning in their graves at 8000rpm.

    I think there are also some wacky competition laws in India. Somender Singh was describing them while he was trying to innovate cylinder heads. -Crazy shit along the lines of, "You cannot legally dismantle an engine to attempt improvements." -or something like that.

    Guess I'd better get the XKR tomorrow, then...

  • This could go either way. I had hoped Jag and LR would return to British hands, or at least European ownership, but Tata are a major player, so it might pan out alright. One thing though; if they move production abroad, it's all over.

  • Actually, I can't wait till Tata comes to the states. All the dealers will have Tatathons.

  • @Novaload: Jag/LR will be independent of the Indian automobile industry. It's ludicrous to assume production will move to India. Or that Tata parts will make their way into Jags. Or that Tata quality will bring down Jag/LR quality. A most reasonable assumption would be Tata acquired Jag/LR for reasons of technology transfer, etc.

    Ford were tired of losing money on their premium marque which is why they are selling. Their own sales obviously aren't significant enough to justify the loss making Jag/LR brands. If Tata have the money and think they can manage better, then why not. They're certainly not stupid enough to turn Jag/LR into econo-cars.

    It's all so similar to when Japanese cars came to the states decades ago. They were all considered shit then.

  • @danms6: Obviously you don't like classic cars or have a sense of humor. Because clearly, a car based on a 6 decade old design trumps everything else.

    Next you'll be telling people who think the original Beetle was the best car ever to shut it.

  • Image of Armand Bengle Armand Bengle at 05:13 PM on 12/17/07 *

    I wonder what Sir William Lyons would say if he heard about this. Probably something similar to what Churchill and Victoria would be saying.

  • @5cents:
    Not at all, but the "Think, then post" is pretty original. I sure am glad I picked up a new internet cliche which has never been used before.

    When the Japanese cars first came to the states, they weren't just considered shit. They actually were pieces of shit in every possible way. Of course they eventually caught on and now excel at making economical cars.

    Your comparison of the evolution of the Japanese auto industry and domestic manufacturing to Tata purchasing luxury brands is flawed and irrelevant. The only way it can work is if you assume production moves to India, which is always a possibility given the current state of affairs. Proton is similar, however this purchase would cost around 20 times more and not just be a small niche in an even smaller market. Then again, Proton's sales have been falling like a rock as of late.

  • @danms6:

    As far as cliches go, I try, I try.

    As far as Tata's acquisition. Guess it's a wait and see game.

    I suppose I'll be hoping I can use another cliche on you, "I told you so," right?

  • Wasn't one of the things that made Jags great was that they weren't just awesome cars, they were relatively cheap too? If Tata can even consider planning a $2500 car, think of the $25,000 Jag they could build.

  • So much pinching and hair pulling on this one. Tata is buying themselves technology and I'm sure they aren't going to cheapen down either company, any marketing consultant will tell them it's suicide. As have been mentioned, the technology from the higher end cars will trickle down to their economy ones. I India the average wage is such that a $2500 new car is the price point where you can sell a ton of them. They might move the production to India, who knows, labor is so much cheaper than Detroit for example. All going to be if they can maintain quality. Time will tell.

  • *SNORE*

  • Well I heard that Fiat will be helping Tata in this deal. Also Fiat could supply technology from Maserati to Jaguar.

  • Tatas have good business acumen and India is also becoming a global player. I am strong believer that TATAs will turn around the company. Even when they started producing Indica they kept their plants separate. ALl new machinery was purchased for Indica plants at Pune, India. New people with fresh mindset were hired to do the production. They are making $2500 car does not mean that it will be produced in the same company. The philosophy is totally different. They can hire e best brains in the world to run these luxury brands and also to carry out the R &D to make more improvements. I am sure Ford is making a right decision to sell these brands to TATAs.

  • Rob: hey Steve, Dude some DA indian company called Tata is taking over Jaguar..Man this is the edn of the world.

    Steve: why is that? last I heard Tata was one of the leading Indian concerns taking over companies in varied inddustries all over the world and turning out winners, they'r even going to distribute Ferrari & Maserati in India

    Rob: oh I dunno man.. they'r just lame.. they make cheap cars.. and they'er now going to make the cheapest car ever.. how dumb is that?

    S: but dude.. aint that the new cool?making cars that are efficient,cheap,light, easy to drive and meet safety stds all over the world? no?

    R: oh no man.. i mean look at Jag now..Ford made a huge success out of the brand..ok not huge but they even managed to sell the X-Type..I mean it was crap but still

    S: is'nt that a re-skinned..leather clad..Mondeo that you are talking about?

    R: oh yeah.. watever.. I think Tata just sucks..

    S Err.. i still dont get it .. why?

    R: I dunno.. (I usually dont..) its going to be BAD for Jaguar.. and LandRover

    S: Ok but who do you think shud've taken over Jag? I mean there's No Brit Auto industry to talk about anymore and most of the American companies are down the drain.. loosing more and more millions each quarter

    R: I know man.. but I think its just lame.. the 'cheapest car..dude the Hummer's the Coolest car in the world.. big huge engine..big tyres. drinks fuel like there's no tomorow..never goes off-road but is capable enough to go there..u know what i mean..

    S: but dude..there's not enoguh fuel in this world to go around and there are millions in India who cant afford a Hummer.. or a big V8

    R: Oh who cares man.. i mean do they even Drive in india? THIS(put any US state here) is the World, this is it.. who cares what they do in india?

    S:when was the last time you ventured out of here? or read anything related to Global business or for that matter went near anything remotely related to Education?

    R: Thats the boring stuff man.. this is life.. Big V8..20" Rims..gallons and gallons of Fuel everyday..listen to gangsta rap and forget the world dude.. you are soo boring

  • Guys, Before making comments about Tata and companies in India, remember that there are more than enough cars in India which many of the Americans cant afford and most of them are owned by Indians. The market in India is booming enough that Indian companies are taking over companies in the international market easily.

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