My thinking is that this is the death knell of Jaguar and Rover. Much of
the appeal of both brands was alway that " Jolly good " stuff that
Americans embraced. Being part of Ford reduced the snob appeal to a lot
of
potential buyers. Being owned by an Indian company will make them the
butt
of endless jokes.
Hang on to your old Jags now- they will be more collectable than ever.
<Bongo Fury> wrote in message
news:nhnku31methqmp4id8qe7jq9c4pbppsa00@[EMAIL PROTECTED]
> As posted just a little bit ago,over the AP
>
> I knew it was inevitable,And I hope that Tata will,as their first
> decision,put an end to this horrible looking new XF-Type.I don't
> know,but being an long time lover of all things Jaguar,this new XF is
> well,let me just say....It looks more like the new Chrysler than a
> Jagaur.
> But anyway,Land-Rover and Jaguar are now in the hands of Tata from
> India,and I find it kinda funny that yet another company from yet
> another former colony has taken over owner****p of a legendary British
> Icon.So who knows,maybe in another 19 or so years,Tata will decide
> it's time to sell Jagaur,and will end up being so to a company from
> Hong Kong,or with a little luck,to one from Quebec or Sydney.
>
> So enouth of my thoughts,here's the AP re****t:
>
>
>
>
> By TOM KRISHER, AP Auto Writer
>
> DETROIT - Ford Motor Co. is selling its storied Jaguar and Land Rover
> brands to India's Tata Motors Ltd. in a deal that will net the U.S.
> automaker $1.7 billion - roughly a third of the price it paid for the
> two luxury brands.
>
> The deal announced Wednesday will expand the Indian carmaker's reach
> around the globe and give Jaguar and Land Rover badly needed capital
> to update and expand their product lines.
>
> The agreement had been in the works for months as cash-strapped Ford
> sought money to fund its turnaround plan.
>
> Tata will pay $2.3 billion for the British brands, but Ford will pay
> about $600 million into the Jaguar-Land Rover pension fund when the
> deal closes, Tata's statement said.
>
> Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7
> billion in 2000. But the Dearborn-based automaker has been struggling
> and wants to focus on its main brands.
>
> Selling the companies at such a loss clearly shows buying them was a
> mistake for Ford, said Erich Merkle, vice president of auto industry
> forecasting for the consulting company IRN Inc. in Grand Rapids.
>
> "How can you call it anything else?" he asked. "You have to cut your
> losses at some point. It's been draining them of cash and resources."
>
> The net proceeds aren't enough to rescue Ford's finances, but the sale
> will allow the company to focus on its core Ford brands, Merkle said.
>
> Tata should have the cash to rescue the brands and develop new
> products to better compete with luxury automakers such as BMW AG,
> Merkle said.
>
> Tata said it expects no significant changes in the terms of employment
> for Jaguar and Land Rover's 16,000 workers. It said the transfer of
> the brands would take place at the end of the second quarter.
>
> The sale raises the Tata conglomerate's profile on the world stage,
> said V.G. Ramakrishnan, the lead auto analyst with the consulting firm
> Frost and Sullivan India.
>
> "It gives them a much better branding image in the global market,"
> Ramakrishnan said. "This is another im****tant landmark step of
> showcasing that Indian companies are arriving on the global landscape.
> Many people will see this deal as the future of things to come - you
> will see more companies out of India acquiring global companies. They
> want to be seen as major global players."
>
> Tata Motors built the first fully Indian-designed car. In contrast to
> the high prices that Jaguars and Land Rovers sell for, Tata recently
> announced plans to build a $2,500 car later this year.
>
> Ford CEO Alan Mulally said in a statement that the British brands are
> leaving Ford in good shape.
>
> "Now, it is time for Ford to concentrate on integrating the Ford brand
> globally, as we implement our plan to create a strong Ford Motor
> Company that delivers profitable growth for all."
>
> Tata said in its statement Ford will continue to supply engines,
> transmissions and other components "for differing periods." Ford also
> will continue to provide environmental and other technologies as well
> as engineering sup****t.
>
> Tata Chairman Ratan N. Tata said his company will try to build on the
> brands' heritage, keeping their identities intact.
>
> "We aim to sup****t their growth, while holding true to our principles
> of allowing the management and employees to bring their experience and
> expertise to bear on the growth of the business," he said in a
> statement.
>
> Roger Maddison, an official with Unite, Jaguar and Land Rover's main
> labor union, said the deal is good news for the automakers' employees
> as well as those who work for parts suppliers.
>
> "Unite has secured written guarantees for all five UK plants on
> staffing levels, employee terms and conditions, including pensions,
> and sourcing agreements. The sale ensures our members futures and we
> look forward to working with Tata," Maddison said in a statement.
>
> Mulally has said the company would invest the proceeds from the sale
> in quality and product development at Ford.
>
> Ford named Tata as the preferred bidder for the British automakers in
> January, essentially dismissing two other bids.
>
> Cash-hungry Ford, which lost $12.6 billion in 2006 and $2.7 billion
> last year, has been looking to sell Jaguar and Land Rover for months.
>
> It has mortgaged assets to continue operations and expects to burn up
> $12 billion to $14 billion until 2009, when it plans to return to
> sustained profitability.
>
> Jaguar and Land Rover are strained by unfavorable exchange rates and
> high production costs in Britain.
>
> Tata Motors is part of Tata Group, India's oldest and largest
> conglomerate. The family business is owned mostly by Tata-funded
> charitable trusts. A substantial ****tion of the group's income is
> channeled into various philanthropies that have helped build some of
> the country's finest institutions, including India's first cancer
> hospital.
>
> Tata companies are known for offering worker benefits that are rare in
> India, including pension and child care allowances.
>
> Some experts believe the group still is too bloated. Ratan Tata
> concedes he has "not been very successful" at pruning the number of
> companies and downsizing staff, which currently totals about 290,000.
>
> Among Tata's holdings are steel makers and a consulting service that
> does software engineering and other work for western firms.
>
> Ford shares edged up a penny to $6.01 in morning trading Wednesday.
> They have traded in a 52-week range of $4.95 to $9.70.
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