Tata drives away with JLR for $2.3 bn

[HoneY]

Ratan Tata does it again

Tata Motors’ $2.3 billion purchase of Jaguar and Land Rover is an important step for the company. The history of the auto industry shows that premium brands help companies break out of the trap of being seen as makers of shoddy goods. Toyota did it with the Lexus, Nissan with the Infiniti and Honda with the Accura. So, Tata Motors has bought its way out of the image trap.
How it will rustle up the money to pay the bill will be an immediate worry for shareholders. It has already mopped up $3 billion as one-year bridge loans from global banks. It will be worth watching what the long-term funding plan is. The price of Tata Motors’ credit default swaps has shot up since it was named as a preferred buyer for the two marquee brands in January. Its credit risk has risen.
The longer term issue is what Tata Motors does with Jaguar and Land Rover, neither of which has been in good health. The key will be launching new cars that sell and managing a portfolio that now stretches from the Tata Nano to the Jaguar.

 

[deep]

Tata drives away with JLR for $2.3 bn
Tribune News Service ​

Mumbai, March 26
Tata Motors today announced that it has bought Jaguar and Land Rover for US $ 2.3 billion from the Ford Motor Company. According to analysts the price paid by the Tatas is half the price paid by the Ford Motor Company when it acquired the two brands five years ago.
Apart from the sale at a sharp discount to its original purchase price, Ford will also be shelling out $ 600 million towards the pension plan for the employees of Jaguar and Land Rover.
Even after the two brands are sold to the Tatas, Ford will supply power trains, stamping and other components to the vehicles made under the two marquee labels. It will also provide engineering support, including research and development (R&D), the joint statement said.
As per the deal, Ford Motor Credit, an associate company of Ford Motor, will continue to provide financing to JLR dealers for 12 months. There will be no change in the terms of employment for JLR employees. The deal broadly comprises of brand, manufacturing plants and IPR, Ford said. Tata Motors will take control of JLR and Land Rover by the end of the next quarter.
In his statement, Ratan Tata, Chairman, Tata Motors, said that he is very pleased with JLR being a significant part of the auto business. He promised that Tata Motors would keep the identities of Jaguar and Land Rover intact. “We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour to preserve and keep their identities intact,” Tata said.
Both Tata Motors and Ford had earlier decided on taking on board Unite, the trade union of JLR and Land Rover. Tony Woodley, joint general secretary of Unite welcomed the deal. “We would have much preferred Ford to keep the companies in the family....but with the commitments Tata have given to the future of Jaguar Land Rover and the long term supply agreements for components, especially engines from Bridgend and Dagenham, we’re obviously pleased they are in the game,” Woodley told mediapersons.
The Tatas had expressed interest in taking over Jaguar Land Rover way back in July last year shortly after Ford put the two brands on the block. In January this year, Ford announced that Tata was the preferred bidder and the finer points of the deal were sewn by Tata and Ford officials in the past few weeks.
The transaction is the culmination of Ford’s decision last August to explore strategic options for the JLR business as the company accelerates its focus on its Ford brand and “One Ford” global transformation.
“The sale is expected to close by the end of the next quarter and is subject to customary closing conditions, including receipt of applicable regulatory approvals,” the statement said Ford Motor CEO and president Alan Mulally said: “Jaguar and Land Rover are terrific brands. We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata’s stewardship.

 

[TaRaN.rbk]

Tata

 

[HoneY]

repost..............veere

 

[SHauKeeN GaBRu]

dhann dhann karti oye

 

[deep]

repost..............veere

sorry honey veere main dekheya nahin si, can you hold any of mod to delete this thread?

Thanks

 

[HoneY]

je mere bas vich hunda mien phele hi delete kar deni ci ...combine kar ke ....e content os vich pa ke

 

[deep]

je mere bas vich hunda mien phele hi delete kar deni ci ...combine kar ke ....e content os vich pa ke

theek hai bhaji hun?

 

[HoneY]

mien taan keha bakiya nu problem auni ci ..ohna nu ik topic do bar parna paina ci

 

[Jeet4560]

wah......so now Jaguar...Safari de paa mile geee