Ford sells Land Rover to TATA!?!?!?!

[wolf]

Oh for Gods sake
Its like selling Armani to Walmart

Tata buys into trouble
Ratan Tata, who runs the Tata Group, one of India’s two biggest conglomerates, is buying into a history of trouble with his expected $2-3 billion deal to acquire the Jaguar and Land-Rover companies from Ford (F). The question is whether he can break a cycle of decline.

It’s been 40 years since the British government, in a bid to rebuild the country’s automobile industry, cobbled together ailing car brands such as Jaguar, Rover, Austin, Morris and Riley into a giant called British Leyland. BL, as it became known, was a failure, mainly because of endemic labor problems, uninspired products, and poor quality. Since 1968, there have been many rescue attempts, but only rare short bursts of success. Several of the once proud names are long forgotten and none is British-owned; the iconic MG brand was bought three years ago by China’s Nanjing Automobile to make sports cars in China and the U.K., and the Morris Mini cult car is with BMW.

So could Tata succeed where others have failed? There’s reason for optimism. Ratan Tata isn’t expected to treat Jaguar and Land Rover like a traditional takeover: He says he’s not planning to overhaul senior management, close factories in Britain, or cut workers. And he doesn’t seem all that interested in instant profits – just as he doesn’t expect instant returns from the tiny Nano car he hopes to launch by year’s end. Instead, he is expected to use the brands and their U.K. plants, executives and labor to help build Tata Motors, which had $7.2 billion sales in fiscal 2007, into a global car company. His been on this mission for several years, buying Britain’s Tetley Tea in 2000, a Korea-based Daewoo truck plant in 2004, and steel giant Corus (previously British Steel) last year.

Ratan Tata’s hands-off ownership could win him crucial support as he tries to fold the Jaguar and Land Rover brands into Tata. Mark Norbom, the head of General Electric in Japan, wrote recently in the Financial Times about the importance of the “soft side” of a takeover deal. The “look in the eyes that (the buying) company is worthy” has special value, said Norbom, and is something that “does not come naturally to the typical western-trained dealmaker.” Well, it seems to come naturally to Tata and his people. It was evident in the Corus deal, and it seems to be at work again in their Jaguar and Land-Rover plans.

This could, of course, mean that Tata is seen - especially by British trade union leaders - as a soft option who will let workforces carry on as usual. Land Rover has had three years of record sales for Tata to build on. But there’s no telling how long the status quo can last, especially if demand slackens in the United States and elsewhere and Ratan Tata has to institute cutbacks at the luxury car makers.

Tata has said that Land Rover and Jaguar will benefit from India’s low-cost design and IT ability - and boost sales in Asia. His company will “add value in co-operating on engineering and development which are considerably cheaper (in India) than in the west,” he said. Tata Technologies, the group’s advanced industrial design house, is based in Pune and operates in twelve countries, with international headquarters in Singapore. It has been involved in the design of Tata Motors’ cars and vans, but does about 75% of its work for foreign clients, including Chrysler, General Motors (GM), Boeing (BA) and Airbus.

There’s another question hanging over the deal: Tata’s future once its 70-year old patriarch retires. He is not due to step down until he’s 75 - in December 2012 - but has said he would like to go earlier, and there are rumors it could be at the end of this year. That seems unlikely, if only because there is no clear successor. From inside the Tata family there is a reclusive cousin, Noel Tata, who runs some of Tata’s retail businesses, but there is no sign of him being groomed for the corporate and public life that goes with the job. One or two top executives from outside the family, and even outside the Tata Group, have also been rumored, but none has been publicly held out as a successor.

It is Tata who has provided the personal drive and leadership to turn Tata Motors into a business that can produce the Nano and buy two world famous brands - in the same year. There’s a big job waiting for someone – and Tata is not yet saying who. Until it does, the era uncertainty at Land Rover and Jaguar won’t be over.

[wolf]

Wow, no comments?
so this doesnt bug anyone?

[XtremeMarine]

Doesn't bug me at all. I was pissed when it got sold to FOMOCO. Damn americans running european companies. That's annoying. At least they're not selling to Koreans, or Chinese. I remember how bad kia, daewoo, and hyundai cars were. The indians have a hell of a business empire in tata. Will probably be as good as when BMW owned them, as long as they leave production in the UK.

[stolenheron]

from what i've been hearing on some of the automotive industry shows and online papers is that it will be an improvement for quality control. i don't think it can hurt any.

[salty]

just remember to waggle your head side to side when you are talking in the dealership from now on.

[ArmyRover]

no comment really from me since we all knew it was coming and I have no plans on buying a new Rover.

[DevynsDad]

At the risk of being labeled a xenophobe or worse, I would like to say that it bother the hell out of me that a company based in India is buying up Land Rover, Jaguar, British Steel and other Western companies. In another decade Ford will be owned by a second-world nation. So will Chrysler and Dodge. I can't see how this could possibly be a good thing.

At some point in Norhtern Europe and North America we are going to entirely lose the capacity to build anything. When that day comes, we will become the second world nations and the Indias and Chinas of the world will have replaced us.

[Expedition Nutter]

Man I think you're really blowing this out of proportion. The Brits have been in India for eons, and British culture has rubbed off on a LOT of people in India. Don't confuse the lower level, poverty stricken bunch with the guys who are buying the company. These Indians know what a REAL Land Rover is supposed to be. Heck probably most of their country is full of old Series Rovers all around the place.

I don't think anything could be worse than FORD owning Land Rover. What a black eye in my opinion. I had ONE Ford when I was younger. I learned quickly not to buy another. It fell apart, piece by piece. What a piece of junk. My two Rovers sitting in my driveway are practically as good as the day we bought them. Sure they show a little wear, we drive them and use them. However they don't have pieces breaking off or falling off. As a matter of fact, I have had no problems, not even ONE with our Disco since we got it. We regularly maintain them, I check fluids, change what needs changing, check tightness of bolts etc and everything is good to go.

[YellowFever]

Originally Posted by DevynsDad

At the risk of being labeled a xenophobe or worse, I would like to say that it bother the hell out of me that a company based in India is buying up Land Rover, Jaguar, British Steel and other Western companies. In another decade Ford will be owned by a second-world nation. So will Chrysler and Dodge. I can't see how this could possibly be a good thing.

At some point in Norhtern Europe and North America we are going to entirely lose the capacity to build anything. When that day comes, we will become the second world nations and the Indias and Chinas of the world will have replaced us.

Well by the looks of the American car industry's financial statements, we aren't very good at running these companies either. There is one cure for part of their problems, BUST the unions and bring the price of manufacturing down.

[Series 3 guy]

Well...who fucking wants a brand new Landy anyway? I know guys on the forum have em' but not my ticket man. They are realy nice dont get me wrong but for what i use my trucks for I would have one nearly ruined in the first year of ownership anyway.
Land Rover is a proud company with proud tradition but Land Rover wasn't land Rover when it was sold from English ownership.

Expedition Nuter-You think Land Rover was better uner BMW? The people that took a perfectly good Diesel Platform and over engineered it into an Electronic nightmare? Try spending £400 for a single fuel injector! Thats right mate...£400 for each! The Td5 is a joke. Thats why 10-12 year old Defenders with 200 and 300 Tdi's are fetching more money than a newer Td5.

Ford took Jag to new heights and saved it from the abyss. They also put the Transit Diesel in the Defender making it totaly unbreakable!

If it wasn't for Ford the Defender would have scrapped from the line up altogether.

Sorry I just feel the opposite,Ford saved Land Rover.

As far as Tata....time will tell. But I dont realy see anything to look forward to to be honest.

Maybe they can do the one thing no else has been able to do...get the Defender Stateside?

[Alak]

Problem with indian motor companies is everything must be profit. Cut costs here, slash quality and product there.

Off the top of my head, I cant name one good indian motorcar.

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However; Tata is an extremely large and powerful empire that has the potential to fund land rover extremely well for many years to come. They have much to offer and launch LR into an even more accessable worldwide brand could potentially bring Defenders here, and small city jaguar cars as well.

[nickyill]

It's a WORLD ECONOMY guys...There are no "American," "British," whatever vehicles anymore - parts and assembling are spread everywhere...All companies have profit as the bottom line, not sure why TaTa would be any different.

Quality can't be any worse and we have another shot at a Defender. Hold tight.

[tcpfl]

If not a Defender, maybe a diesel LR3?