Goodbye Ford

[Thrasher]

LR and Jag now owned by Tata.

[Baron-Red]

Is that signed now?

This is from Times Online March 25, 2008

Ford to seal $2bn Jaguar-Land Rover sale to Tata Rhys Blakely, Bombay
Ford's sale of Land Rover and Jaguar to Tata, the Indian conglomerate, could be finalised as soon as tomorrow and fetch upwards of $2 billion (£1 billion).

TV reports in India suggest the price for the British-based luxury marques will be $2.65 billion, while senior tax advisors working on the deal would confirm only that the deal will fetch "at least $2bn".

The final sums involved are likely to be significantly more, however, after factoring in Ford's contribution to pension scheme deficits and its commitment to supply expensive engine and transmission systems to Tata for years to come.

It is understood that Tata has raised about $3 billion to fund the deal, including cash to cover working capital requirements.

It is also understood that Land Rover and Jaguar employees will be briefed on their futures soon after returning to work following the Easter break.

Tata has agreed to keep intact the three manufacturing facilities at Solihull, Castle Bromwich and Halewood, where Ford employs 13,500 people.

Unions have been informed that there will be no redundancies.

Ford will hope that a sale of the profitable Land Rover and the loss-making Jaguar will draw a line under a painful period.

It put the two divisions up for sale last year after posting a $12.6 billion loss, the largest in its 103-year history.

Last year, Tata, whose interests run from tea plantations to IT outsourcing, confirmed its global status by buying the Anglo Dutch steelmaker Corus for £6.2 billion.

Its international buying spree has also included Tetley, the tea maker, Daewoo's commercial vehicle arm and the Ritz-Carlton hotel in Boston.

Winning the Jaguar and Land Rover brands, however, would open a radical new chapter in the company's history.

Although Tata's trucks dominate the highways of India and the company has made passenger cars since 1991, acquiring the marques would represent a foray into uncharted luxury territory.

Ratan Tata, the chairman, has acknowledged the image disparity that Tata would face in owning two of the industry's most esteemed brands while producing what it claims will be the world's cheapest automobile, the one-lakh Nano — a lakh is 100,000 rupees (£1,200) — which was unveiled this year.

But he has brushed aside concerns suggesting that Tata is merely emulating proven strategies.

"Toyota created Lexus, Nissan has Infiniti," he recently told The Times

"No one is saying, 'How can BMW handle the Mini?' but they've made a huge success of it. So why is it impossible?"

Ford, which has also been in talks with the Government over the future of Jaguar and Land Rover, said in November that it expected to wrap up a sale early this year.

It is under pressure to pay down its debt mountain, which Fitch, the ratings agency, estimates has grown by more than $21 billion since 2001.

Tata and Ford refused to elaborate on the state of their talks.

Both sides have said that they have been pleased with the progress of the negotiations since Tata was named preferred bidder for Jaguar and Land Rover in January.

[adafish]

of subject, but noticed that you have a REBEL REPLICA in ya avatar, got one here ourselves. Do you/have you ever had to change the pin that engages the hub...the kids have broke thiers and its only running on the one wheel..

[Team Landzuki]

Oh Goodness Gracious Me !!!!!!!!! :lol:

[Bishops Finger]

Don't you mean Tata and not goodbye :lol:

[stuvy]

BOOOOOOOOOOOOOOOOO hisssssssssssssssssss

[Range Rover Blues]

Oh well, with the price of Gordon Browns war fund licence I'll not be buying one anyway, but I don't fancy the chances of classic parts being available for long :'(

Stupid move on Ford's part, the new Jag is getting good press and LR has always been a cash-cow even for BL, why they didn't just stop making jagaurs though is beyond me, if it looses money DON'T DO IT

[Horness]

Does this mean we'll start seeing taxi drivers going around in Jag's and Land Rovers ?? 

Guess we'll have to wait and see how the marque pans out now.  Shame in my opinion, but in line with what's happening to the rest of the country.

[Thrasher]

The number of owners LR have had, I can't see much changing .....

[vtrdaz]

Didn't jaguar make money last year?

[datalas]

Well, Tata own Tetley, half of daewoo and who knows who else at this point, so it's not *that* worrying.

[Boddle]

 

Stupid move on Ford's part, the new Jag is getting good press and LR has always been a cash-cow even for BL, why they didn't just stop making jagaurs though is beyond me, if it looses money DON'T DO IT

If my understanding of this is correct it's due to Ford owing a lot of money to the American pension fund and the banks pulling the plug on getting the money back, Also has a lot to do with inefficiencies in American part of business and Unions.

Didn't jaguar make money last year?

No due mainly to run down of S-Type and cost of starting production of XF they are predicted if XF sells well (which so far has been better than predicted) should do this year.

 It will be a long time before Ford influence will go there are contracts for engine for a long time to come.

[Disco Matt]

Did anyone else see the TV news report where they used footage of Range Rover Classics being built? It's been a while since they came off the line...

[karlo]

Hopefully an injection of cash will do them good.

[littlepow]

If it helps secure jobs and keeps the brand going, then good luck to TATA. Most people knocked the eastern pacific rim car manufactures, but look how many are now making decent reliable cars.

As long as they keep improving the quality and the image of the brand, then why should they be any different to Ford or BMW.

[Range Rover Blues]

Mainly because Ford and BMW had experience to bring to LR, Ford particularly added a lot of technical know-how into Jaguar and LR when it aquired them.  jaguar has been a millstone round it's kneck ever since and had Ford seen the books before it bought Jaguar it wouldn't have if you get my drift, it was a hostile take-over IIRC and there were other companies interested.

It's juyts a shame that both BMW and Ford have got themselves into financial difficulties and sold off one of the best of their assets to cover their debts.

Ford have now sold Aston Martin, LR and Jaguar.  Volvo anybody ;)

[Tommo]

yeah but TATA might junk the crappy ford ka dashboard and replace it with a sheet of chequerplate and some lucas switches just like the good old days. They might fit lockkers instead of complex traction control etc etc

very unlikely. but would be good!

[littlepow]

BMW had to sell LR to get rid of the moneypit of rover. LR seems to be the sweetner in all the millstone sell offs since it's formation. Hopefully next time it will be sold on it's own.

[vtrdaz]

BMW had to sell LR to get rid of the moneypit of rover. LR seems to be the sweetner in all the millstone sell offs since it's formation. Hopefully next time it will be sold on it's own.

It would be difficult to sell LR and Jag now as separate concerns - both marques share the same tech facilities, purchasing dept etc etc.

[Range Rover Blues]

And yet the X-type is a Mondeo, the Defender has a transit engine but perhaps this is why the F2 was not rebadged as a Ford in the 'states.

[davidlandy]

I really hope that TATA doesnt make LR fit those horrible sticky out hubs to its line up..yuk!