Tata Financing Jaguar-Land Rover With Capital One Card?
Indian investors aren't thrilled with Tata's acquisition of Jag and Land Rover (JLR). Not only have JLR lost billions of dollars for Ford, but apparently Tata wasn't just pulling a fist full of coins out of the sofa to pay for the brands. Reuters reports this morning that "Tata has announced plans to raise $4 billion, expected to help finance the Ford deal and the manufacture of the Nano." And considering the added "earnings volatility" the JLR deal brings (translation: nobody knows what the hell could happen to Tata's bottom line), the purchase is sending ripples through the Indian stock market. It seems people are realizing Tata just bought companies that don't make money. You would have thought Tata already had the cash for the deal; this is not the best time to be looking for $4b on the credit market. And what happens if Tata can't raise the cash? Just sayin'…
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I've got a better idea, why don't the car companies just move to some place that sucks a lot less than Michigan, save everyone a lot of trouble and disappointment.
Oops, flipped over to wrong post :)
Oh this look really promising for Jaguar and Landrover. Give me a break, they're doomed.
LRJ is actually profitable because Land Rover does well enough to offset Jaguar's losses.