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While many confusing car-related things have happened in the upper strata of the Autoverse over the last few years (Aston Martin and Ferrari both being impart owned by Middle Eastern concerns, Aston Martin not being bankrupt) perhaps the most shocking and disconcerting was Ford's sale of Jaguar and Land Rover to India's Tata. To many, the scheme seemed doomed from the get go and after a couple cash-hemorrhaging quarters coupled to the recent recession, the naysayers appeared right.

Turns out, Tata can say nay to the naysayers as its two prestige/luxury brands just turned a profit. A combination of cost cuts and attractive new models (LR4, XF) have helped catapult the long time money losers into the black. And while the $4.7 million in consolidated net profits last quarter is certainly nothing to jump for joy over, that nearly five million bucks is a nice change of pace from the usual Jag/Landy blood red ink. JLR sales rose 23% over the previous quarter. Rule Britannia! Er, India.

[Source: Gasgoo | Photo: Christopher Furlong/Getty Images]


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  • 19 Comments
      • 5 Years Ago
      those cars were engineered and designed by Ford. The brands were sold, because Ford was strapped for cash and didn't want to take bail out money.
        • 5 Years Ago
        And your point is? Ford bought Jaguar about 20 years ago for something like 9 billion. It then bought Land Rover in the early 2000s for too much money. Tata bought these brands for pennies on the dollar, and they are now in the black. Ford had some moves but could not figure out how to make them work. Tata has done what Ford admitted it could not.
      • 5 Years Ago
      Occam's razor tells me that my sarcastic comment about the use of the word "impart" and the writer needing some grammar education imparted to them was rejected because the commenting software is crap, rather than it being super-intelligent.
      • 5 Years Ago
      Meanwhile Bill Ford and Alan Mulally are crying in their beer in the backseat of the company owned Lincoln Town Car limo.
      • 5 Years Ago
      "...the most shocking and disconcerting was Ford's sale of Jaguar and Land Rover to India's Tata. "

      You can't be serious?
      • 5 Years Ago
      I was skeptical of Tata taking over Land Rover but since they have it has just become fantastic.
      The interior and the engines of the Range Rover are now on par with their prices and I will probably get the new full size Range Rover the next time around.
      • 5 Years Ago
      hmmm...a lot of fanfare for what looks like an enlarged A4. guess we'll have to go look at it in person this weekend.
      • 5 Years Ago
      The mounting JLR losses under Tata were bound to be temporary.

      The money they're spending on new products, powertrains, platforms, and models was bound to show a lot of money going out the door, while the (then) current, aging product line continued to sell poorly and bring in less cash.

      Now that the full XF line is out, the new diesels and 5.0L V8s, the new XJ, and a notable refresh of the RR, RR Sport, and LR4, they've got fresh, competent product, a better image, and - what do you know - positive cashflow.

      Of course, more new models are coming, with the Defender replacement in development, updates to the LR2, upcoming LRX, XF estate, sub-XK sports car, XJ hybrid, new XK, and relaunce of the Daimler superlux brand.

      So that still means that plenty of money is going out the door. But the new engines, revised LRs, and all-new XJ, mean they're on a very promising roll, especially if they can manage a 23% sales increase in a terrible market.

      Let's hope they get to do everything they want to. I'm excited.
      • 5 Years Ago
      @ Ahtoxa

      "Ferrari and Mubadala Development Company - a principal investment company wholly owned by the Government of Abu Dhabi - have announced the purchase of a five percent stake in Ferrari by Mubadala from Mediobanca"

      FIAT is still solidly the majority shareholder
      • 5 Years Ago
      I don't think Ford made a mistake by selling those brands. New models help to increase demand, but keeping this up need a lot of investments.
      • 5 Years Ago
      Aston Martin and Ferrari both being impart owned by Middle Eastern concerns
      Is this a typo about Ferrari?
      • 5 Years Ago
      Cool.
      • 5 Years Ago
      I am happy for JaguarLandRover. This goes show if you started to made good & desirable cars again, you will be rewarded eventually. I am sure the new XJ & soon to be reveal mini Range Rover (LRX) will do well in the market as well, especially with the improve economy.
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