Tata buys Jaguar in £1.15bn deal
Thousands of workers at Jaguar and Land Rover plants were told that the marques have been sold to the Indian conglomerate Tata.
A deal between Tata and Ford over the sale of two of the best known names in British car making was concluded after months of painstaking negotiations.
Overview of the two companies:
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer.
• Strong tax incentives for inbound investors
• Strong political motivation for globalization
• Strong reputation and trust
• Adaptive legislative framework
• Negative effect on the IT industry after 2009 as the government’s initiative of Tax holiday under STPI expires (Thinking Street 2007).
• Strong technical skills
• Strong export base
• Strong infrastructure links
• Competitive labour cost model
• Adaptive investment authority to technological investments
• Highly mobile work force
• Strong science and educational culture
• Strong management culture
• Adaptive English speaking population
• Strong R & D culture and facilities
• Strong tie-ups with western technology companies
• Adaptive to new technologies
Jaguar Cars Limited is a luxury car manufacturer based in Whitley, Coventry, United Kingdom with two production plants in Castle Bromwich and Halewood. It was founded as the Swallow Sidecar Company in Blackpool in 1922, changing to SS Cars Ltd in 1934 in Coventry, and finally becoming Jaguar Cars Ltd in 1945, followed by several subsequent changes of ownership. The company was bought by Ford Motor Corporation in 1989 becoming part of their Premier Automotive Group.
• political stability with government regulations
• high safety standards
• high standards for cleaner fuel emissions
• High tax imposed to limit imports which will increase local pricing
• Ecomomic growth of 10% per annum
• plans to invest $500 million
• purchasing power of consumers have increased
SOCIAL AND CULTURAL ENVIRONMENT:
• Committed to environmental cleanliness
• Sponsor programs to educate our children on environmental cleanliness and responsibility
• Sponsor Company wide recycling
• Sponsor cleaner operating vehicles
• Sponsor recyclable components
• Cleaner manufacturing and employee environments
• Vehicles to be capable of running on renewably produced ethanol fuel
• New safety features such as like lane departure warnings and assisted braking
• Combines hybrid technology with Flexi fuel capability for better consumption
A key element of Tata’s deal is that as well as continuing to supply Jaguar with engines, stampings and other components, Ford will provide access to its hybrid and low-emission powertrain technology. Perhaps the biggest worry for Jaguars new owner is the prospect of tough new carbon-emission laws in Europe and California that will penalize makers of thirsty, high-performance vehicles. Jaguar is particularly vulnerable. Even Mercedes and BMW make small cars that will help offset their gas-guzzlers when the new rules, based on fleet-average emissions, come into force. Of course, if Tata could find a way to sell its Nano in Europe and California, that would be one synergy well worth having.