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So which is the Empire and which is the Colony?

Discussion in 'The Pub' started by FALCON-LORD, Mar 26, 2008.

  1. http://news.theage.com.au/ford-sells-luxury-brands-to-indias-tata/20080326-21ki.html

    Ford sells luxury brands to India's Tata
    US automaker Ford has agreed to sell its luxury brands Jaguar and Land Rover to India's Tata Motors for more than $US2 billion ($A2.2 billion), a source familiar with the deal says.

    Ford, which signed the deal on Tuesday, plans to publicly announce the transaction in New York at 8am on Wednesday (midnight AEDT Wednesday), said another source.

    The deal will also see Ford pay about STG300 million ($A660 million) into Jaguar and Land Rovers' pension funds, according to unions.

    Ford declined to comment, adding "our first responsibility is to communicate with our employees".

    The sale had been expected at the start of this month, but it was delayed as the two firms discussed their future relationship, including technology sharing and Ford's provision of engines and body parts for the two brands.

    Tata, India's top vehicle maker, has been in talks with Ford since it was chosen as the frontrunner to buy Jaguar and Land Rover a few days into 2008.

    Tata is pursuing the deal to gain a substantial foothold outside India.

    But analysts have questioned how Tata will incorporate the luxury brands into its stable of sturdy trucks and functional passenger cars, including the Nano, the world's cheapest car which it unveiled in January.

    While Land Rover has generated three years of record sales with its iconic SUVs, the fit of Jaguar is far less clear.

    Ford, which lost $US2.7 billion ($A2.98 billion) in 2007 and $US12.6 billion ($A13.92 billion) in 2006, is spinning off Jaguar and Land Rover to focus on turning around its loss-making operations in North America.

    The sale will include a commitment by Tata to continue buying engines from Ford, according to unions.

    All Jaguar and Land Rover's petrol engines are built in a Ford plant in South Wales, supporting hundreds of jobs there. Diesel engines come from Ford's factory in Dagenham, east London.

    One of the sources knocked down reports on Indian television earlier on Tuesday that the deal had been closed for $US2.65 billion ($A2.93 billion).

    "That figure of $2.65 billion is highly unlikely," one source close to the deal said of the report on news channel NDTV Profit. "You have to come south from that by quite a bit."

    Ahead of the TV report, shares in Tata Motors rose 2.7 per cent to a three-week closing high of 679.95 rupees, in a Mumbai market that surged 6.1 per cent.

    Ford shares were down 0.2 per cent at around $US5.95 at 0513 AEDT on Wednesday
  2. And they will buy it back in a few years when they fcuk it up totally, remember proton and MV. You only get one Alan Bond in your life!
  3. Dunno, Ford was doing a pretty good job of doing that themselves. Current Jags are already poorly built and overpriced - if Tata can at least solve the price issue they should do okay. Might also keep Ford designers from f*&king around with styling and producing things like the XF.
  4. [​IMG]

    That is all :LOL:
  5. Jaguars built by Ford are a definite improvement in quality over any Jaguar from the Mk 10 onwards. (That's not to say they were all that well built - just better than before) :LOL:

    Problem was that people didn't want to pay Jaguar prices for what was essentially a Mondeo (X-type Jag). What now remains to be seen is whether people will pay premium prices for a car built by a cheap company. Cars like Jaguar sell as much on their image as they do on anything else. Cheapening that image (as Ford did with the X-Type) means sales go through the floor.
  6. True but cheaper construction costs means manufacturers can cram in far more features for a given price - and this is what seems to work best on the US market, which is where Jaguar was really struggling.
  7. I'm a little surprised that they sold Land Rover as well... that (as mentioned) has actually been performing well.

    Ford must be *very* worried if they are spinning off not only loss makers but also profitable subsidiaries.
  8. But record sales doesn't necessarily equate to high profit. Though I reckon it's probably more to do with them not knowing what to do with the brand long-term, it'd be costly and risky to try and develop an all-new Land Rover (as they already learned with Jag).
  9. Ford Australia, 1925-2009 RIP
  10. Well they sold off AM last year, and it was making plenty of money. But there's been no mention of them selling off Volvo, and that's the biggest money maker out of all the (now former) PAG marques.