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Tata leading the Jaguar/Land Rover bid
By Yoann Besnard on 13 November 2007 | 
(1) Comments | Permalink
The Indian carmaker Tata looks set to be the winning bidder in the Jaguar/Land Rover bid if the current situation does not change. The Tata buyout does not really please either Jaguar or Land Rover. If such a buyout happened there is a chance that Tata will take the two companies' expertise to expand its own company, to the detriment of the two beleaguered American carmakers. Jaguar appears to be the most fragile if we consider that its management admitted profit level will remain negative for several years to come.
Tata might also move their production to India in order to cut costs but such a move might be fatal for both brands. Jaguar just topped the quality benchmarks in the US while Land Rover still languishes behind the competition. Moving the production would irremediably decrease the quality during the first months.
The good news is that Tata is more than just a carmaker. It is a huge conglomerate that produces everything that Indian consumers need in daily life and in many respects has the financial power to rejuvenate a clumsy Jaguar and Land Rover whose future is far from safe due to stricter CO2 regulations.
That said, Jaguar and Land Rover are still hoping that a private equity firm will make an offer that Tata cannot match.
Comments
Posted by: Steven Upton | Nov 21, 2007 7:09:02 PM
"Jaguar and Land Rover are still hoping that a private equity firm will make an offer that Tata cannot match."
I doubt it.
Tata is cash rich. Well, that means they are plain better business men.
