Say Tata to Jaguar

[slngsht]

Way to go FoMoCo... Bought Land Rover and Jag for 5.2 Billion. Selling for 1.5 - 2 Billion.

 

I had never heard of Tata before - I imagine the typical luxo buyer hasn't either, at least in the US market.

 

DETROIT (AP) -- Ford Motor Co. picked India's Tata Motors Ltd. as the top bidder for its Jaguar and Land Rover units, the Detroit automaker said Thursday.

 

Ford has entered into "focused negotiations at a more detailed level" with Tata, meaning it has become the preferred bidder for the storied British automakers, the company said in a statement.

 

"There is still a considerable amount of work to do, and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks with a view to securing an agreement that is in the best interests of all parties concerned," Lewis Booth, executive vice president of Ford's European units, said in a statement.

 

Jaguar and Land Rover employees in the United Kingdom were told about the negotiations Thursday morning shortly before the company made the announcement.

 

Ford spokesman Jay Ward in London would not say how much Tata had bid for the automakers, nor would he say if the other two bidders, Indian automaker Mahindra & Mahindra Ltd. (MAHM.F) and U.S. private equity firm One Equity Partners LLC, were still in the running.

 

Last month people close to the negotiations told The Associated Press the potential suitors had submitted bids that ranged from $1.5 billion to $2 billion.

 

Tata (TTM) confirmed the advanced state of negotiations Thursday.

 

"We are now entering a period of more focused and detailed negotiations," the Mumbai-based Tata Motors said in a statement e-mailed to the AP. "We hope both parties can reach an agreement in the forthcoming weeks, though these are complex discussions and there is still much work that needs to be done before that position is reached."

 

Cash-hungry Ford, which lost $12.6 billion last year but earned $88 million in the first nine months of 2007, has been shopping Jaguar and Land Rover.

 

Ford (F, Fortune 500) has mortgaged assets to continue operations and expects to burn up $12 billion to $14 billion until 2009, when it plans to return to sustained profitability.

 

Jaguar and Land Rover have been hit by unfavorable exchange rates and high production costs in Britain.

 

Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000, which with Aston Martin and Volvo, made up its Premier Automotive Group.

 

Earlier this year Ford completed the sale of its controlling stake in Aston Martin for $931 million in cash and preferred stock.

 

Ford has said it plans to keep Volvo for now, fixing its cost structure and making it a more premium brand

 

 

[Sean]

I haven't heard of Tata before, but somehow I imagine they have large headlights.

[xflow7]

Tata's actually a pretty big company. Don't know alot about them, but I believe they do quite a bit of heavy industry stuff in addition to automotive.

 

They also sponsor the Williams F1 team. :hurray:

[Mondo]

I read the title and thought Tata meant good bye. It might be if they try to sell Jaguars & Rovers from India.... another blow for middle class workers.

 

But hey, we're building British like cars here on this site

[slngsht]

I read the title and thought Tata meant good bye. It might be if they try to sell Jaguars & Rovers from India.... another blow for middle class workers.

 

But hey, we're building British like cars here on this site

 

The subject was intended to be understood that way, although Sean's interpretation is better.

 

I've always had a soft spot for Jag and Range Rover, but who would buy a luxo car from India? They have a huge image problem to overcome in the US. And I'm not saying this because of racism or something. 20 years ago, would anybody buy a luxury car from Hyundai? Now they have proven themselves, and if they release an upscale car, people will consider it.

 

BTW, Jag dealers are super pissed about this deal.

[xflow7]

You may be right, Mazda. On the other hand I'm not sure that

 

a) Joe and Jane Prospective Jaguar Buyer will even be aware of the sale unless they work on Wall St., or

b) Jaguar being bought by an Indian company will be significantly more traumatic to it's image than having been bought by Ford several years ago.

[DBs seven]

I can tell you that the Jag dealers are looking forward to the change , sometimes a fresh start and new money can work wonders. I worked for Jaguar when ford took over and all the same hype was around then with people all upset that an English car was going to be built by Americans and the cars may be called "Fag's". As a Jaguar technician I can tell you that alot of Fords influence was very possitive although now the model range is a little stale. The UK get turbo diesels and are selling very well .

 

I don't mind as long as the interior color names stay the same and don't switch to "curry seats" with a "Korma console" and "vindaloo carpet"

[ayseven]

Tata obviously means "Toodleoo" in Hindi, if you get my drift.