http://news.yahoo.com/s/ap/20080326/...kPsHvhbbCs0NUE

 

how badly Ford ran the integration.
how badly Ford needs cash.
yet another example of the increasing power of the emerging markets.

Both a sad and happy day.

Matt

 

Tata buys Jaguar in £1.15bn deal

Ford put Jaguar and Land Rover up for sale last June
Car giant Ford has sold its luxury UK-based car brands Jaguar and Land Rover to Indian company Tata.

Tata, India's biggest vehicle maker, is paying $2.3bn (£1.15bn) for the British brands after months of negotiations over price and supply relationships.

The negotiations started last June when Ford announced its intention to sell the companies as a package.

Jaguar and Land Rover employ about 16,000 staff at UK plants in the West Midlands and Merseyside.

Although Land Rover remains profitable, Ford has never managed to make money from its investment in Jaguar.


Ford has been forced to sell the two companies, based at Solihull and Castle Bromwich in the West Midlands and Halewood on Merseyside, in order to concentrate on its loss-making core US car business, which it hopes to turn around in the next two years.

The $2.3bn price tag is about half the amount Ford originally paid for the marques, leading some analysts to argue that the purchase was a mistake.

"How can you call it anything else?" said Erich Merkle, an auto expert for US consulting company IRN.

"You have to cut your losses at some point. It's been draining them of cash and resources."

Ford sold its iconic Aston Martin marque to a UK-led investment consortium in a deal worth $955.2m last year.

No significant changes

The companies said there would not be any "significant changes" to Jaguar or Land Rover employees' terms of employment on completion of the sale.

They said that staff, trade unions and the UK government had been kept informed of developments and supported the move.

Tata said the deal should be completed by the end of the summer, subject to applicable regulatory approvals.

The purchase will give Tata the opportunity to expand its presence in the passenger car market beyond India and gives it the clout necessary to compete with international players.


In January, Tata launched the world's cheapest car, the Nano, priced at $2,500 (£1,250).

By contrast, the starting price for Jaguar's latest sports car, the XF is more than £32,000 ($64,000).

"We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," Tata said.

"We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact.

"We aim to support 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."

Alan Mulally, the president and chief executive of Ford, said he was "confident" that the brands would continue to thrive under Tata's stewardship.

"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," he added.

Terms

Under the terms of the deal, Ford will contribute about $600m to the Jaguar and Land Rover pension plans.

Ford will continue to supply Jaguar and Land Rover for differing periods with engines, stampings and other car components, in addition to a variety of technologies.

In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers during a transitional period of up to 12 months.

"It seems as though they have resolved some tricky supply issues," said Ernst & Young's automotive expert Eric Wallbank.

"The deal will give Ford the cash to revive its fortunes in the US and focus on its core brand, while it adds an important plank to Tata's automotive ambitions," he added.

 

 

Looks like I sold my land rover at the right time to buy my mini... that and the 9 mpg and premium gas and the $100+ fill ups

 

when you think about the anual income of lots of the world, a $2500 car (the chinese equivalent will be about $3k) really opens up huge markets. And if your alternative is a bicycle or a yak, having that much carrying space and a 30 HP motor or whatever really is an improvement.

The purchase of the high end brands is more about the developed world than the developing world (at least for the short term....)

Matt

 

MG to the Chinese (The marque will cease to exist)
Jaguar to the Indians....

I'm getting depressed.

 

Maybe sold at Walmart !

 

what should we expect when all we do is live off credit? Sometime the bill is due, and for many (people and companies) the only way to pay is to sell off assets. To those that loaned us the money in the first place... It's not like anyone was forced to bend over. It's more like more than enough rope was offered, and accepted gladly. Now everyone is getting hung...

This shouldn't be a surprise to anyone....

Matt

 

But you can eat a yak. Or sleep with one. Or even marry it.

 

I hear yak tastes like chicken !

 

The fear related to the cheap Tata (that just sounds weird) is that pollution will explode now that it possible to drive a fuel burning car rather than ride a bike or yak (altough they have "emissions" of a different kind).

You know that deep down the owner of Tata is loving that he just bought two of England's jewels- if they would bring over a turbo diesel powered Defender- even better!

 

Well, looking at that car is enough to make me yak.

Now, with a couple famed marques to it's name, they can now be marketed as Bodacious Tatas.

 

Or a nice pair of Tatas.