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Tata expected to sign Memorandum on sale of Jaguar this month
Ford and Tata are expected to sign a Memorandum of Understanding on the sale of Jaguar and Land Rover in late February or early March. Ford has reportedly agreed to continue supplying engines and components, and Tata to accept the pension arrangements. The final issue is Ford's discussions with British auto workers unions. The unions don't have any problems with the deal between Ford and Tata, nor anything that they have agreed to with Ford so far. The sticking point appears to be that Ford has only given verbal guarantees, and the unions want those guarantees locked in for "the next few years", presumably in writing. Until then, the unions won't recommend accepting the deal. Aside from all of that, the best news is that Tata has signed off on both Land Rover and Jaguar's business plans through 2012, which means the F-Type we've been waiting eight years for could finally be on the way. And if that happens, then Tata is tops in our book.[Source: Automotive News , sub. req'd]
Reader Comments (Page 1 of 2)
Trideep Gogoi 3:04PM (2/14/2008)
This is awesome news for Tata that has now made its mark on the world stage, This is good news for Jaguar that will finally get the cash infusion it needs to go ahead with their stellar designs and this is good news for Ford and this is one more step in the automaker's trot towards profitability. I only hope that Tata is able to revive the Jaguar brand.
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USCGTO 10:16AM (2/14/2008)
way to go.
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acheampong 10:31AM (2/14/2008)
Ah the British Empire! How come there is no one in the UK that wants to own their own iconic marques. Rolls, Bentley, Jaguar, Rover? anyone? I guess Aston is in Prodrive hands, or is that German? Now just some 60-70 years later, your bosses are in India.
About Tata, when I used to live in Zambia, all I nkew about them was they made busses and lorrys that looked remarkably like benz but were poorly under-powered and broke down very quickly. But that was 15 years ago so maybe, for my beloved land rover's sake, they have improved. Please let it be so!
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psarhjinian 12:19PM (2/14/2008)
Well, there's two things:
1. The British never seemed to "get" mass production. Their few attempts (Rover being the big one) made the Italians look like masters of quality control.
2. There's nothing left of the British automotive industry that could buy any one of these groups. I don't think that, outside of finance or media, Britain has any industrial infrastructure that could take on Lotus, let alone Rover.
However bad Tata might be, I can't image them being worse than Rover/LR is now.
Mr. Oak 10:37AM (2/14/2008)
Don't care who buys them, just get rid of them already.
....and there goes my boyhood dream of one day owning a Jaguar.
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sledge 11:00AM (2/14/2008)
Actually Tata had a licensing agreement with MB to make use of their old designs, so that's why the striking resemblance.
I really don't know if their reliability has improved since then, but my own anecdotal evidence is that the school buses (full size coaches) where I grew up were all Tata and they never broke down (this is about 10 years back and they were operating in 50C heat in the summers).
I think if Tata takes over it will be more of a symbiotic relationship between them and Jaguar+LR. Jag/LR will provide technical expertise on chassis, suspension, engines etc. which helps Tata improve its own brand product lines. Tata provides capital and hires the required expertise to ensure Jag+LR improve and thrive.
If anything the former will ensure that Tata can play with the big boys (Honda, Toyota, Skoda, Mitsu) in the mid level (Civic, Accord, Corolla, Camry) segments and off roader (Mitsu Pajero) segments in the Indian market.
On a side note, Tata has been one of the predominant players in the cheap off-roader segment in India for a long time. They have the Sumo and the Safari which are both considered to be quite reasonably capable in the rough stuff given their price ($20000 when sold in India, compared to $60000 for a Mitsu Pajero/Montero). So LR should help them improve on that.
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DesiAuto 2:06PM (2/14/2008)
IMO, Tata Estate, Sumo and now Safari are as good as Escape, Vue etc. if not better.
sledge 11:01AM (2/14/2008)
That last comment was @acheampong
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Sandy 12:16PM (2/14/2008)
I love Jaguars, especially the XJ & XR series, however, a buyer debating between an Audi A8, a BMW 7-Series, a Mercedes Benz S-Class, a Porsche Cayanne Crossover has storied and honored makers. But the Jag's owned is Tata ? What kinda image does that project?
Don't think image does not matter! It does! Many of my family perished in 1938 in Nazi Germany, the the offspring today will not buy M-B nor BMW nor Audi. IF they are spending THAT kinda money, it's Jaguar, Lincoln or Cadillac.
Tata, while having no negitives, also has no positives and is unknown here in America.
Shame! What they ae doing (Ford) to Jaguar. Who they going to sell Volvo to?
Maybe that company in Holland that make buses.
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acheampong 12:06PM (2/14/2008)
My comment about the tatas reliability was in comparison to the Neoplans and scanias, Dafs etc. I would guess maintenance was equally poor but boy the tatas brocken down in no time.
Anyway the Defender 110 (only ever owned a 90 though) has always been my fav offroader and the new Range rover sport now occupies the softest spot in my heart so hope you are right and they don't regress as they did prior to the BMW aquisition.
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VPN 12:19PM (2/14/2008)
racist POS!!!
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VPN 12:19PM (2/14/2008)
racist POS!!!
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Robert 12:36PM (2/14/2008)
Tata is just the owner. Jaguar is the marque with the history. Ultimately, very few people will know who owns Jaguar and Land Rover. No one knows that Ford owns them now outside of the enthusiast community. When someone goes to buy a Land Rover, they aren't buying a Ford - they're buying a Land Rover.
It will be generally known and then generally forgotten.
What is most sad is that all the work that Ford has now done to make, especially Jaguar, a viable luxury brand again - vastly better quality, more efficient corporate structure, XK, XF and upcoming XJ - the ground work for a lot of what we're going to see out of Jaguar in the next three to four years will undoubtedly be attributed to Tata.
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sledge 12:40PM (2/14/2008)
@acheampong: You are right, Tata's have a long way to go before they come close to DAF, Volvo, MAN levels of reliability.
Btw, I envy you - I've always wanted a Defender 90. Nothing like it for mud-plugging.
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ronnie schreiber 12:44PM (2/14/2008)
It's not racist to acknowledge that India and China both have quality issues in the minds of western consumers. South Africa is Tata's most important export market at this point and the cars they sell there rank pretty low in terms of initial quality according to J.D. Power.
Putting aside the very real question of quality, I've been taught that it's usually better to assume ignorance than malice. Many Indian companies, particularly the conglomerates like Tata and Mahindra, are huge companies and people like the US Jaguar dealers who are concerned about the image of a luxury marque being owned by a company in the third world are simply ignorant about what major players some Indian companies are.
The luxury market is finicky. The Jaguar X-Type was derided as "a Ford" because of its Mondeo platform, while much more upscale Bentleys have tremendous cachet even though mechanically they are pretty much Audi A8s. None of it really makes sense, but I suspect that racism is a very small part of the negative reaction to Tata's acquisition of Jaguar/Land Rover.
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Sandy 1:39PM (2/14/2008)
Now some are playing the Race Card. It's not about Race nor religion. It *IS* about heritage, and the spin a manufacturer instills in a prospective buyer. A buyer knows the corporation called Mercedes-Benz. A buyer also knows the corporation called Bavarian Motor Werks. A buyer also knows and respects Audi, even though they may know nothing of their history. (BTW, I DO).
A buyer knows General Motors, Ford Motor Company and Chrysler Corporation.
A buyer knows Toyota, Nissan and Honda, and what they stand for.
A person able to afford an XF, XK, or XJ or S-Type "R" will know that it's a Jaguar, by marque, but what will take place mentally when they find it it's made bny TaTa ? The buyer knew Ford Motor Company and priot they know Jagaur as well as Aston Martin. But.... TaTa ?
It can't possibly help and there's a good chance that it's going to hurt.
People worry about warantee coverage, ability of getting parts, resale, and and and PRESTIEGE.
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DesiAuto 2:44PM (2/14/2008)
Only people who visit websites like autoblog will remember that Tata actually owns Jag.
Your regular "buyer" won't notice a thing.
They used to go to Jag delare when Ford was owner and they wills till go to jag delare when Tata is owner.
Sandy 5:18PM (2/14/2008)
DesiAuto, I truly hope you are correct, and that I am wrong. I love Jaguar cars. Never had one, as I can't afford to spend THAT kinda money on a car. (I drive a 2003 Lincoln Town Car - Bought New in 4/'03). Jag (to me) has always had a panache of class that rivals lacked. Here in New Jersey in "newly wealthy" communities you'll see the BMWs, Cadillacs, Mercedes, Audis, Lincolns, and the like, but when you drive thru the "Old Money" 3rd generation of hand-me-down wealth ~ THAT'S where you see the Porsches, Jags, Astons, a here & there Rolls or Bentley and the Sunday cruiser flawless 57 T-Birds. Tata or not, if I win the lottery, I am getting a white XF with every possible option ! That's a promise !
induscreed 3:00PM (2/14/2008)
Way to go TATA, beat the white man...one POS overrated "luxury" car at a time!!
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Vik 1:26PM (2/14/2008)
Sandy- yes, no reason to play the race card when we see comments like this from Nick: "Instead of Dealers, TATA will use 7-11s. A fully loaded Jag will now come with a Moonroof, Cherry Slurpee and an old hot dog."
Racism has no part in this conversation, you're right. Pulling out "the race card" is ridiculous.
I want to live in your fairy-tale land.
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