Tata Takeover of Jag and Landie Delayed. Again. Still.
The Economic Times of India reports that Tata's any-day-now-they-swear $2b acquisition of Land Rover and Jaguar has been delayed by the Unite union's insistence that Jag continue to source powertrains from Ford's UK plants. (The two brands will be kept as a single package because Jag and Landie share UK-sourced powertrain components.) Ford PR flacks aren't concerned that these unresolved issues may prevent the deal from going through by the projected March fifth deadline. "There will be a strong relationship between Ford and Jaguar-Land Rover post the sale, so it's important any agreements are fully understood by all the parties and work to the mutual benefit of all concerned. However, this shouldn't be seen as a delay or issue or roadblocks in the process." This should probably be taken with a grain of salt, considering Ford previously claimed the announcement had been held back "so as not to overshadow the launch of the new Fiesta at the upcoming Geneva Auto Show." Insert mirthless laugh here.
BKW on Mar 03, 2008
Would someone please explain why Tata would want these two losers in the first place? Jag hasn't made a cent for Ford since Ford bought it (for 4 billion dollars) years ago. Some ppl say Ford has invested, to date, over 20 billion dollars in the car. Sales are miniscule, circa 1500 units a month. Land Rover profits for Ford have been slim and none. The warranty costs have been outrageous.
Jthorner on Mar 03, 2008
I suspect that Tata's purchase is at least partly about nostalgia and pride. Back in the days when England ruled India the Land Rover was a nearly mythical go anywhere, do anything vehicle. It was a better Jeep than a Jeep. Jaguar is a symbol of wealth, comfort, power and style (or at least it was). For the former subjects of England to get the chance to purchase what they remember as the automotive Crown Jewels of their former overlord for what now is pocket change to the surging Tata empire must be heady emotional stuff indeed.