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Originally Posted by Steeroid  I still am not in favour of the decision to buy these marquees, though. |
I completely agree with Steer here and for the following reasons:
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Originally Posted by MaserQ 2. Tata has ample experience with overseas takeovers. Now if JLR will fit in strategically into the Tata umbrella, only time will tell. |
Problem is not managing takeovers but managing & reviving a nearly-dead Luxury car maker. Trust me, this is harder said then done especially given the condition that Jag & LR are in today. Why do you think there are only "3" bidders worldwide for these "prestigious" brands?? There's got to be a good reason for that & there is.
Both the brands are in real bad shape & IMO it would take a company much more experienced in this business of developing & selling luxury automobiles than both TATA & M&M combined. Remember, selling commuter & economy vehicles is one thing & selling high-end stuff is another.
Remember, if BMW & Ford could not make these companies profitable & run them, there's got to be a good reason behind it.
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Originally Posted by MaserQ 3. Let us remember that Tata were small fish in the world steel market untill they bought a much much bigger Corus. This move has catapulted them into the top 10 steel makers. Theirs continues to be a happy marriage (atleast while the honeymoon lasts  ) |
Yes, but they have years & years of being in the Steel market. And what experience do they have of the auto market?? Absolutely none if you compare their 20-odd years of existence to the rest of the big manufacturers. Even Hyundai is over 40 years old internationally now & has only now started to find a foothold in the global market & even that mainly only in the Economy & VFM market.
IMO both our companies don't have the expertise or experience to go into the international luxury market at this point of time. In all probability they are going to burn their finger, nay their hands badly at this venture.