Previous rumors that Indian automaker Tata was chosen by Ford from among a group of bidders to buy Jaguar and Land Rover have proven to be true, as both Tata and Ford announced earlier today that they have moved into advanced negotiations on the sale of the two British marques.
Although both companies were quick to point out that there are still a number of steps before the deal is finalized, informed insiders have confirmed that the two competing bidders, Mahindra & Mahindra Ltd and One Equity Partners LLC, have effectively been rejected in favor of Tata.
Factory workers at Jaguar and Land Rover in England were reportedly informed shortly before the announcement went public. Ford, the biggest seller of automobiles in the UK, reportedly wants the new owner of Jaguar and Land Rover to retain the bulk of their existing 15,300-strong British work force, and Jaguar's principal union has expressed its preference for Tata.
Although Ford needs the cash injection from selling off its subsidiaries, the automaker is anticipated to pursue a similar relationship with Jaguar and Land Rover that it maintains with Aston Martin: continuing to supply components, including engines, even after the divisions are sold off.
Follow the jump to read the official statement from Ford of Europe and PAG chairman Lewis Booth.
[Source: Detroit Free Press]
PRESS RELEASE:
STATEMENT: POTENTIAL SALE OF JAGUAR LAND ROVER
DEARBORN, Mich., Jan. 3, 2008 – The following statement is attributable to Lewis Booth, executive vice president – Ford of Europe and Premier Automotive Group (Chairman – Jaguar, Land Rover, Volvo and Ford of Europe):
"Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar Land Rover business."
"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."
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Reader Comments (Page 1 of 1)
WolfgangNC @ Jan 3rd 2008 11:37AM
Someone explain to me how Ford is keeping there technology information from being spread all over the place when this buyout happens?
I know BMW made a big stink about how Ford took alot of BMW's technology when Ford bought Land Rover from BMW way back when. Some say that is where Ford's modular engines came from.
British_Rover @ Jan 3rd 2008 11:46AM
Please don't speak when you don't know what you are talking about.
The Ford Modular Engine family was developed well before Ford bought Land Rover in 2000.
http://en.wikipedia.org/wiki/Ford_Modular_engine
If you could point out some articles where BMW made a big deal about Ford stealing technology I would appreciate that. I don't remember reading anything about it at the time and no one I know at Land Rover has ever mentioned it to me.
Pete @ Jan 3rd 2008 11:48AM
Yeah, the modular engines began development back in 1989.
Mondo @ Jan 3rd 2008 11:40AM
Woder if Tata will stall until it gets early returns on how well the XF and new XJ will do in the market, potentially negotiating purchase price down or more perks if they are going to do poorly. XF may be one of the keys to the whole deal in terms of future cash flows for the buyer. Is Range Rover still relevant?
jimbo @ Jan 3rd 2008 11:56AM
XF has and will continue to get rave reviews but the car buying public will continue to reject Jaguar because of their reputation for poor quality. It takes a generation or two for this to be fixed so no one should expect XF or even XJ to be the saviour of the company. At best, Jaguar is a manufacturer of niche produts with excellent dealerships (BTW excellent because they don't sell many cars so have lots of time to focus on the customer).
JD @ Jan 3rd 2008 12:59PM
Tata is a consortium, not just one company. They run a LOT of outsourced/tech stuff, and the car company is just one of many. So as an overall organization, they probably won't feel a thing. But it will probably take a while to turn this into a profitable venture for sure.
3cubed minus 3squared plus1 @ Jan 3rd 2008 11:56AM
Now that Rover is gone, the next Navigator better look stunning.
GENERALMOTORSMAN4LIFE @ Jan 3rd 2008 12:13PM
Ok, it is official now-you can kiss Jag and Rover good bye! Anyone with these vehicles will have to call India to get consumer relation issues resolved-good luck! It is such ashame that 2 once prestigious automaking companies could meet an untimely death this way-hell, I would have rather they return to a british equity firm than this-oh well.
VP @ Jan 3rd 2008 12:21PM
Are you really that much of an idiot or are you pretending to be one? What exactly do you know about Tata? Anything about their business ventures? There are a bigger international firm than they are are Indian one. Do you want to take any guesses on who own the largest producer of steel, Corus: Yes it is Tata. Get your head our of the gutter, Indians will be owning a lot more. Get used to it.
Paul @ Jan 3rd 2008 1:00PM
I really do not think this will be the case. Having experienced one of the Tata companies in action, I know that their investment in Jaguar and Land Rover can only be good news.
At the moment, Range Rover is still relevant as it is the only one of the two companies that actually makes a profit thanks to footballers, celebrities and idiots like Jordan driving one.
As for the XF, Jaguar already has 3000 pre-orders for the car. How many of these become firm orders (i.e. through to delivery) is anyone's guess. IMHO, I can see the XF doing well, at least for the first couple of years.
In an ideal world, Tata would use Fiat's example (with the 500) and share the platform so they can make money on it. The Fiat 500 is one of the first cars in the world to be profitable even before it has been released.
Speddy @ Jan 3rd 2008 12:24PM
Ford picks a Tit?
doug @ Jan 3rd 2008 12:39PM
Here's a question: How will Tata handle Jaguar's use of cowhides going forward? Don't the Hindus revere the cow a special animal?
Avinash machado @ Jan 4th 2008 4:07AM
Tata is owned by Non-Hindus. The CEO Ratan Tata belongs to the Parsi\Zoroastrian religion. Also many cars in India have leather interiors.
sw @ Jan 3rd 2008 12:50PM
I hope that the new owners do something about the atrocious reliability of Land Rover
Xcountryflyer @ Jan 3rd 2008 1:27PM
Hey you're sportin' some niceTatas.
Pete @ Jan 3rd 2008 1:40PM
Don't say goodbye, but TATA...
lol
sebastian mejia @ Jan 3rd 2008 3:54PM
I just love your tata's!
adrian @ Jan 8th 2008 5:09PM
I remember when BMW took a lot of technology such as the Hill Decent Control system from Land Rover for use in their X5 before they dumped Rover for good.
ConnecticutYankee @ Jan 12th 2008 11:21PM
I was actually in the process of considering an LR3. I love the history and elegence of this brand. It was bad enough when Ford bought it. Its an absolute sin that an Indian frim will own it. I guarantee sales plummet. I will be the first in the phenomena. No way am I goning end up with a faux luxury brand run by a bunch of hacks in India.
What a shame.