After Tetley and the Corus, its the Jaguar and Landrover from the very Ford family itself that ushers the TATAs into the international space .But this time though the acquisition is even more special because of the very brands Jaguar and Landrover, exceptionally dear to the parent company that will now grow under the stewardship of the TATAs . The US $2.3 billion that TATA will shell out for the brands, the manufacturing facilties, the engineering, technology could surely be a good buy for TATA.
High praise from Tony Woodley, joint general secretary of Unite the union. He says that if Jaguar Land Rover had to be sold then Tata was the best option. "We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable," he said. "But with the commitments Tata have given to the future of Jaguar Land Rover and the long term supply agreements for components, especially engines from Bridgend and Dagenham, we're obviously pleased they are in the game." (read the full article in The Economic Times).
Many experts are silently surprised at this buy though. Although Landrover was quite a profitable baby for the Ford, the Jaguar with the rise in fuel prices was more of a loss making bad boy for the American company. Ford badly needed the US $ 2.3 Billion in its banks in the wake of the credit crisis, and there might have been no other reason they would have chosen to part with the premium brands.
For TATA though this acquisition might mean more of a tough challenge ahead. The language of the TATAs seem very confident though.The TATA's are out to do with the Jaguar what even the Americans couldn't. Make profit with the luxury brand-Jaguar. This may not have been possible if not for TATA's huge and diversified conglomerate, ranging from steel to several automobile components. Having shocked the world with the US$ 2,500 Nano, the TATA is now set to surpirse the world in the luxury segment.
While it its yet to see whether Ratan Tata can turn around the loss making Jaguar, one thing is for sure, that the TATAs have proved it yet again , that they are in no mood to rest. Its Vini Vidi Vici for the TATAs.