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d_himan · 1st January 2008, 20:59

Hi junta,

One of these days, I'm sure either Tata or M&M would be taking over management control of Jaguar from Ford.

I can't, for the life of me fathom the rationale of the acquisition - at a time when manufacturers are facing rough weather in the developed world and are closely looking at BRIC economies for growth, and with UK being perhaps the world's most saturated markets, what's the point owing Jaguar?

Some huge negatives, IMHO,

1. Ford bought Jaguar in 1990 for $2.5 billion. This sum was considered too large then given the marque's precarious history and labour-union controlled factories. The turnaround never happened - Jaguar has been a failure. The operation was selling 50,000 vehicles per year when Ford bought it, and the goal was to get it up to 250,000 annual sales. Ford never came close. Last year's retail sales were 89,802 cars.

2. Ford made enormous improvements in Jaguar's quality, reliability and handling and performance but could never create the right cars to build and the right strategy to sell them. Maybe Ford doesn't understand luxury cars all that well - can Tata or M&M help?

3. Would an Indian owned Jaguar go well with Jaguar's typically snobby target market? 50% of its sales are in the US - threatened due to strengthening of Euro. No manufacturing base in US for balancing out exchange rate fluctuations -No competent diesel threatening Euro sales.

Positives:

1. With Land Rover thrown in, maybe it'll all work out somehow..?

2. Would be nice to borrow a page or two from the lads in Coventry to improve quality of Tata/M&M products...easier said than done though.

3. Cheaper Land Rovers/Jags for us all if they're manufactured in India! Yaabadabadoo!

Do comment guys, I'm pretty curious about this deal!

Wishing you a great 2008

1st January 2008, 20:59	#224 (permalink)
d_himan Newbie Join Date: Nov 2006 Location: mumbai Posts: 35	Tata/M&M Acquiring Jaguar - Wise? Hi junta, One of these days, I'm sure either Tata or M&M would be taking over management control of Jaguar from Ford. I can't, for the life of me fathom the rationale of the acquisition - at a time when manufacturers are facing rough weather in the developed world and are closely looking at BRIC economies for growth, and with UK being perhaps the world's most saturated markets, what's the point owing Jaguar? Some huge negatives, IMHO, 1. Ford bought Jaguar in 1990 for $2.5 billion. This sum was considered too large then given the marque's precarious history and labour-union controlled factories. The turnaround never happened - Jaguar has been a failure. The operation was selling 50,000 vehicles per year when Ford bought it, and the goal was to get it up to 250,000 annual sales. Ford never came close. Last year's retail sales were 89,802 cars. 2. Ford made enormous improvements in Jaguar's quality, reliability and handling and performance but could never create the right cars to build and the right strategy to sell them. Maybe Ford doesn't understand luxury cars all that well - can Tata or M&M help? 3. Would an Indian owned Jaguar go well with Jaguar's typically snobby target market? 50% of its sales are in the US - threatened due to strengthening of Euro. No manufacturing base in US for balancing out exchange rate fluctuations -No competent diesel threatening Euro sales. Positives: 1. With Land Rover thrown in, maybe it'll all work out somehow..? 2. Would be nice to borrow a page or two from the lads in Coventry to improve quality of Tata/M&M products...easier said than done though. 3. Cheaper Land Rovers/Jags for us all if they're manufactured in India! Yaabadabadoo! Do comment guys, I'm pretty curious about this deal! Wishing you a great 2008