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Old 22nd February 2017, 15:27   #1
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New rumour is that Ford is mulling buyout of PV business of Tata Motors. Ford wants inorganic growth to strengthen its India business.

The news was being displayed on CNBC TV18 at around 3:20pm but I cannot find any news article link for the same.

EDIT: Found the youtube link for the news

Last edited by GTO : 23rd February 2017 at 10:20. Reason: Merging both your posts
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Old 22nd February 2017, 16:21   #2
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Default Re: Rumour: Tata Motors & VW exploring a platform-sharing partnership

Ratan Tata asked the same thing to Ford about two decades ago, and now we have an offer for the same request
But with the current bullish product plans and announcements that Tata has made, I doubt if they would be interested in a complete sell-out. Tata suddenly is back into the focus, and we have major automotive giants with different proposals, trying to get them in!
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Old 22nd February 2017, 18:17   #3
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Default Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

This might come as a shock but there might be a possibility of Ford buying out the domestic passenger vehicle segment of Tata Motors! If not a total buyout, a partnership is also possible.

This may be a part of one of the aggressive plans of Ford of expanding its business in India. An all equity deal in case of a buyout may be on cards.

This is just when we were reading that Tata might get into a partnership with VW!!

Here is more on it: http://www.moneycontrol.com/news/cnb...s_8540681.html
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Old 22nd February 2017, 18:27   #4
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

That indeed is shocking. Highly doubt the authenticity of this news from Moneycontrol. Looks more like a speculation rather than a fact.

I think partnership is probable but buy-out looks a little too far fetched.
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Old 22nd February 2017, 18:33   #5
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

Tata seems to be getting the correct products, and gaining market confidence after a long time. I don't think that this is the correct time to sell off and exit, at the same time Ford also has suitable products though the market isn't responding kindly.
A partnership will do good for both, not a buy out.

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Old 22nd February 2017, 18:38   #6
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

Has Tata been known to hive off any of its domestics operations in the past, regardless of profitablity of that business?
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Old 22nd February 2017, 18:39   #7
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Default Re: Rumour: Tata Motors & VW exploring a platform-sharing partnership

What is interesting about this rumor of Ford buying Passenger Vehicle Unit of Tata Motors is that Tata had bought Jaguar-Land Rover from Ford itself. So if Ford buys Tata Motors do they get hold of JLR too since it's a subsidiary of Tata Motors ? In context of Indian operations both Tata & Ford don't enjoy a good public perception even though most of their recent products are quite capable. Will they be able to solve that challenge by coming together ? Only time will tell even though we have seen a failed attempt by Fiat. Good Luck to both since we need competition to take on Maruti & Hyundai.

PS : Looks like the taking over of new Chairman of Tata Sons is starting to show its effect. What puzzles me is that the axing of Nano, Indica, Indigo etc were demanded by ousted Chairman Cyrus Mistry & he was denied the same.
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Old 22nd February 2017, 18:41   #8
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

From TATA Motors Twitter page:

https://twitter.com/TataMotors/statu...74944410701824

Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!-c5rlk_3w8aesgii.jpg
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Old 22nd February 2017, 18:47   #9
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

Quote:
Originally Posted by saket77 View Post
This might come as a shock but there might be a possibility of Ford buying out the domestic passenger vehicle segment of Tata Motors! If not a total buyout, a partnership is also possible.

This may be a part of one of the aggressive plans of Ford of expanding its business in India. An all equity deal in case of a buyout may be on cards.

This is just when we were reading that Tata might get into a partnership with VW!!

Here is more on it: http://www.moneycontrol.com/news/cnb...s_8540681.html

This is what I read : Ratan Tata did try to forge this acquisition in late 1990's post his failure with indiaca v1. The Ford CEO insulted Ratan Tata asking him to stick to commercial vehicles and saying that passenger vehicle segment is a different beast altogether that needs specialized skill and focus. They flat out refused the acquisition.

We all know what happened post that. Indica v2 came out, Tata Safari EX came out and we all know the story post then.

So I am not sure if they want to go back to the same route with Ford again.
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Old 22nd February 2017, 18:47   #10
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

Quote:
Originally Posted by sanjaykk View Post
From TATA Motors Twitter page:
I too find this news hard to digest. And surely, Tata is not known to selling domestic business; esp with the might of Tata motors which has been very dear to the company and its founders.

But the notification on twitter or even company's website is hardly something I will go by. Not long ago, Axis had denied reports of possible merger with another bank and notified the same to the stock exchange. (http://www.moneycontrol.com/stocks/r...6332921.html):)

Last edited by saket77 : 22nd February 2017 at 18:49.
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Old 22nd February 2017, 19:04   #11
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Default Re: Rumour: Tata Motors & VW exploring a platform-sharing partnership

On the other hand, this thread seems to suggest that Ford may buy the passenger vehicle segment of Tata Motors.

http://www.team-bhp.com/forum/indian...ta-motors.html

Sure seems to be a lot of rumors going around.

Best,
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Old 22nd February 2017, 19:21   #12
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

Buying Jaguar and then selling Tata's passenger segment - does not makes any sense to me. I highly doubt this news, as true as a rumor could be.
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Old 22nd February 2017, 19:22   #13
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

This is pure speculation IMHO. One of the key points of contention in the Tata-Mistry spat was Mr. Mistry's plan to shelve Nano which didn't go well with Mr. Ratan Tata. And here is this article talking about selling entire domestic PV business. That too at a time when they have a slew of products in the pipeline for the next few years. Wouldn't they want to focus their energies on new products rather than selling the business? I find this article hard to believe.

Last edited by mahesh_sn : 22nd February 2017 at 19:24.
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Old 22nd February 2017, 20:05   #14
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

From what I could gather from the news report.

The news appears to have come from the Ford camp. That they are interested in Tata Motors' passenger vehicles business, either outright sale or equity.

Then the report makes a case on how Tata Motors' PV business is on a decline and how it is a huge burden and how they will be glad to let it go.

I have a strong feeling it didn't come from the Tata camp. Following is an excerpt from an article from the Economic Times:

Quote:
"They told us 'you do not know anything, why did you start the passenger car division at all'. They said they will do us a favour by buying our car division," a Tata Group veteran said while recalling a meeting of Ratan Tata and other top executives with Ford officials in Detroit in 1999.
I do not think that as long as Ratan Tata is alive, he will let his business get sold to Ford.

This article, in a way, helps Tata, while negotiating with Volkswagen.
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Old 22nd February 2017, 20:46   #15
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Default re: Rumour: Ford may buy Passenger Vehicle business of Tata Motors. EDIT: Tata denies rumour!

The news that is quoted is like 18 years old now. How do you know it is from Ford camp? It is from some mischief making camp for sure but it does not matter which camp it is from. Tatas bought JLR from Ford. There isn't any logic why Ford would want Tata's passenger vehicle business and nor for Tata to sell it when their new generation products are coming up and JLR doing quite well. If Tatas could turn around JLR they might as well turn around their India business

Quote:
Originally Posted by ashutoshb View Post
From what I could gather from the news report.

The news appears to have come from the Ford camp. ...
I have a strong feeling it didn't come from the Tata camp. Following is an excerpt from an article from the Economic Times:
...
I do not think that as long as Ratan Tata is alive, he will let his business get sold to Ford.

This article, in a way, helps Tata, while negotiating with Volkswagen.
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