Jaguar-LandRover Deal Lands At Last In Tata’s Couch!!!!

Today Indian Automobile major, Tata Motors has bought Jaguar and Land Rover for USD 2.3 billion.  Ford said it would pay about USD 600 million towards the pension plan.  Ford will also supply power trains, stamping, and other components. Along with that, it will provide engineering support, including research and development.  Ford Motor Credit will provide financing to JLR dealers for 12 months. There will be no change in the terms of employment for JLR employees.  Ford added that the deal comprises of brands, manufacturing plants, and IPR. The deal will be closed by the end of the next quarter.The Ford Union said Tatas expect to employ more people and they are happy with the pension plan.

Ratan Tata, Chairman, Tata Group said he is very pleased with JLR being a significant part of the auto business. Tata Motors would keep the identities of Jaguar and Land Rover intact, he added. “We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business,” said Tata.

Meanwhile Tony Woodley, Joint General Secretary of Unite – the union of JLR, said if JLR had to be sold then the Tatas was the best option. “We would have preferred that Ford keep these companies in the family, especially with Land Rover being so profitable,” he said. “But with the commitments that the Tatas have given to the future of Jaguar-Land Rover and the long-term supply agreements for components, especially engines from Bridgend and Dagenham, we are obviously pleased they are in the game.”

Animated Timeline of Tata-JLR Deal:

After months of endless speculation and several postponements, Tata Motors is all set to bring the Land Rover and Jaguar brands into its fold.

On June 11, 2006, Ford announced its decision to sell off Jaguar and Land Rover. About a month later, Tatas’ interest in JLR became open. On August 24, Ratan Tata confirmed his interest for the first time. Then, in November, the workers union approved Tata as its choice for a new owner. After that there was no news of Tata’s buy with Christmas around the corner.

But on January 3, Ford said Tata Motor was the preferred bidder for Ford.

This entry was posted on Wednesday, March 26th, 2008 at 4:28 pm and is filed under Board meetings, daily musings. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Jaguar-LandRover Deal Lands At Last In Tata’s Couch!!!!”

  1. Global Voices Online » India: Tata, Jaguar and Rover. Says:
    March 26, 2008 at 8:33 pm | Reply

    [...] while the slightly larger Land Rover will take the role of “right Tata”.” Krishna Raj of My Capital Market Weblog sums up the key points of the deal in his blog post. Ford will also supply power trains, stamping, [...]

  2. Kamla Bhatt Blog » Global Voices: India’s Tata Acquires Jaguar and Land Rover Says:
    March 26, 2008 at 10:07 pm | Reply

    [...] while the slightly larger Land Rover will take the role of “right Tata”. Krishna Raj of My Capital Market Weblog sums up the key points of the deal in his blog post. Ford will also supply power trains, stamping, [...]

  3. Ratan Tata Have No Plans To Tinker The‘Image’ Of Jaguar, Land Rover « My Capital Market Weblog Says:
    April 4, 2008 at 7:26 am | Reply

    [...] Tata Have No Plans To Tinker The‘Image’ Of Jaguar, Land Rover Ford Motor Co.’s recent sale of the Jaguar and Land Rover brands to ne of world’s emerging economy India’s Tata Group [...]

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