Ford Sells Jaguar, Land Rover to India's Tata Autos

witchofthedogs · #1 03-26-2008, 01:23 PM

From msnbc.com (http://www.msnbc.msn.com/id/23797447/):

Ford sells Jaguar, Land Rover to India’s Tata
Automakers ink $1.7 billion deal for storied British luxury-car makers

DETROIT - Ford Motor Co. is selling its storied Jaguar and Land Rover businesses 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 sale 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.

...

From later on in the article:

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. Jaguars in the U.S. have sticker prices starting around $50,000 and can cost nearly twice that amount.

Interesting.

Chase · #2 03-26-2008, 01:24 PM

Wow, thats....um.....pretty big

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Naomi · #3 03-26-2008, 01:37 PM

This might surprise you all coming from me. The mistake was "Bill Ford" He was or should I say still is such an idiot that he killed both Jag and Land Rover and Ford itself with his bright idea (pun) of how to run a company. He ran it right into the ground. Spoiled rich kid thinking I can run this company because cars are a "hobby" to me. Poor Henry is still rolling over in his grave.

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Chase · #4 03-26-2008, 01:38 PM

I bet Na, seems to be lots of domestic car manuf CEO's that are NOT making any good decisions....it's depressing.

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Roogle · #5 03-26-2008, 01:45 PM

Blech!!

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JoeyCat · #6 03-26-2008, 02:04 PM

So, how many women do you think will want "Tata" on their cars????

Chase · #7 03-26-2008, 02:05 PM

China's "Chery" auto maker (owned by the gov't of Wuhu) is almost approved for shipment to the US as well....OOooOoOOoo

We will have Chery's and Tata's on the road sooner then you think....and im not talking about RT.13

you cant make this stuff up Wikimedia Error

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Last edited by Chase; 03-26-2008 at 02:08 PM..

Ford Sells Jaguar, Land Rover to India's Tata Autos

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