Tata Purchase of Jaguar and Land Rover In Doubt. Again. Still.
Tata's prospective purchase of Jaguar and Land Rover from Ford is reportedly foundering on Tata's insistence on price guarantees for Ford engines. The Detroit News quotes sources "close to negotiations" (as opposed to?) as saying Ford is unlikely to agree to any such guarantees in light of price increases in key commodities. Garel Rhys, director of the Centre for Automotive Industry at Cardiff University, calls Tata's request "absurd, and they know it." BUT Rhys reckons it's in Tata's interest to drag-out the purchase process while it secures financing. And, perhaps, a better price. With no other offers tabled for the two FoMoCo "premier" brands, the Blue Oval Boyz have little choice but to duke-it-out with Tata. Ford's "Wish We'd Gone from Sir Anthony Bamford" deal has already been pushed past two informal deadlines. Ford now says an agreement with Tata Motors is expected "mid year."
I think Tata wants these brands to give them credibility. Many people in the world have never heard of Tata. But those people all know who Jaguar and Land Rover are. If they treat them as specialty lower volume vehicles and have the money to nurture them, it will open up many markets for other products.
I have to wonder if Ratan Tata (the head honcho) is having second thoughts, as well. After all, as soon as this deal was announced, Tata stock dropped fairly significantly. Interestingly, Tata is worth more on the stock market than General Motors, which speaks volumes about GM as well as the prospects of India. Mr. Tata? You'd be honestly better off to take the slow lane and grow your company brand worldwide organically instead of through purchasing losers like Land Rover and Jaguar. Literally, (money) losers. I'd "love" to see how much money shareholders, British Leyland's (British taxpayer) money, and Ford money have been p!ssed away through Jaguar and Land Rover over the past 1/2 century. I think people would be shocked. Kill 'em off, already. GM should do the same for Saab (only in that case, it was "murder").
Land Rover has been profitable for quite some time... how do car people not know this, but still feel the need to opine?
Land Rover has been profitable? Since when, 2007? How about posting a few yr to yr sales figures. What I've read in AutoNews and other publications is sales have been just awful till recently. The warranty costs to fix the piles have been enormous, another reason for Tata to pass on the purchase. Why is Tata the only serious bidder for Jag and Land Rover? No one else on the planet wants them. There has to be more than one reason for this scenario. Poor sales, huge warranty costs & zero profits would be my guess.