Recently, I wrote about how Tata is reaping huge profits thanks to the acquisition of the “toxic” JLR brands. It was a huge gamble to buy them, but it paid off. Literally. Well, it appears that Tata’s growing profits are going to benefit not only Tata, but ironically, Ford, as well.
Rediff reports Tata is asking Ford to build more engines, because JLR is flying high. Tata is building plants in China and India and those plants will need supplies of engines to keep product flowing.
C. Ramakrishnan, CFO for Tata Motors, said: “Currently, Ford is delivering more than what it had contracted for, but our need is even higher than that. We believe Ford has ramp-up plans to tackle the additional volumes.”
Currently, Tata has contracts with Ford to supply Tata with engines, but as Mr Ramakrishnan also said, that doesn’t stop them from looking elsewhere. “Our agreement with Ford doesn’t prevent us from doing that. We can look at the Tata Motors range, too” he said. Erm, calm down! It probably might be better to let JLR develop a range of their own! I can’t see a Jaguar XJ being powered by the powertrain of a Tata Nano. But, best of all, this could spell good news for the UK.
Ford’s Dagenham plant is a global hub of engine manufacture for Ford. Any increase in volume, will almost certainly result in bigger volumes (and, therefore, more exports) for the Essex based plant. Go globalization!