There is no doubt that tata can afford to buy jaguar,now the question really is does tata need to buy jaguar.
When tata bid for corus it was not just a shot in the dark,there were synergies with tata steel.Tata did make a calculation to see which would be cheaper going it out alone or an acquisition and the latter was a cheaper alternative even after the inflated price tag of corus.But here things are slightly different,Ford shall not allow any major restructuring by the new owner for both jaguar or landrover, that means cutting down costs would be next to impossible besides as pointed out by Mpower the engines would still have to come from Ford.
As far as Image building is concerned tata always have the fiat group tie up,their premium brands can also give a boost to the tata image yes maybe not as much as a jaguar but then risks are very much on the lower side.
Now the interesting bit is that if at all tata would bid it would be for jaguar and mahindra would do so for landrover but ford plans to bundle the two together so would we see a collaboration on that front from the two Indian rivals.
Last edited by rahul_intlad : 20th July 2007 at 13:25.
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