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Old 1st March 2019, 16:36   #1
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Rumour: Tata Motors selling minority stake in JLR

Tata Motors exploring options for JLR including stake sales.

Quote:
The company is expected to hold preliminary discussion with potential advisors as sales of the company decline and dented car maker's profitability.

JLR options vary from minority stake sale to the possible joint ventures
JLR continues to perform worse than other luxury brands in China which further is taking a toll on Tata Motors spending.


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Old 4th March 2019, 12:40   #2
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Re: Jaguar-Land Rover pushes Tata Motors into the red

Normal minds would think, all they have to do is just manufacture their car's in markets like India to bring prices down which would push sales up. Nothing is wrong with their car's, just that the German Trio seem more VFM than the Jag's.

But Jaguar is in a very precarious position. They can't shed their elitist image to the Germans by bringing prices down nor can they change their manufacturing bases to countries like India as that would damage their snob and brand value.
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Old 4th March 2019, 12:48   #3
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Re: Jaguar-Land Rover pushes Tata Motors into the red

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Originally Posted by stanjohn123 View Post
Normal minds would think, all they have to do is just manufacture their car's in markets like India to bring prices down which would push sales up. Nothing is wrong with their car's, just that the German Trio seem more VFM than the Jag's.

But Jaguar is in a very precarious position. They can't shed their elitist image to the Germans by bringing prices down nor can they change their manufacturing bases to countries like India as that would damage their snob and brand value.
Check the original article and some of the comments of the other members.
It is very clear what the root cause of this quarter financials is. It is a combination, mostly of the JLR Chinese market tumbling down and JLR diesel market in Europe

I doubt very much that most owners even remotely understand or care, where a car is manufactured these days.

I believe these days Jaguar is a very good brand. They did quite well financially for many years. Great line up of models over the years. Changing a brand image by slashing prices might not help at all. It took them decades to get to the current brand image. You just don't throw that away over one quarter of poor financials.

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Old 10th March 2019, 19:36   #4
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Re: Rumour: Tata Motors selling minority stake in JLR

Rumour: Tata Motors selling minority stake in JLR - Posts moved to a new thread.
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Old 11th March 2019, 11:26   #5
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Re: Jaguar-Land Rover pushes Tata Motors into the red

Quote:
Originally Posted by Jeroen View Post
Check the original article and some of the comments of the other members.
It is very clear what the root cause of this quarter financials is. It is a combination, mostly of the JLR Chinese market tumbling down and JLR diesel market in Europe

I doubt very much that most owners even remotely understand or care, where a car is manufactured these days.

I believe these days Jaguar is a very good brand. They did quite well financially for many years. Great line up of models over the years. Changing a brand image by slashing prices might not help at all. It took them decades to get to the current brand image. You just don't throw that away over one quarter of poor financials.

Jeroen
Even then when you see the whole automotive industry in total, there seems to be a lot of uncertainty in both domestic and international markets. With many countries including ours pushing for quick EV migration, ban on diesels etc. But if you see expenditure has not reduced from JLR side, with still huge investments in new technologies and models. Not to forget their other expenses like warranty costs which is also substantial.

Right now, TATA motors are covering this loss, but for how long will they bear it ? The future according to me at least looks bleak for the British brand unless they find out a way to increase their sales or cut down on their expenditures.

TATA too definitely feels the pressure and there are reports of them planning to sell a minority stake or getting a vendor partner to lower costs further. This would not be the case if they believed this was just a short term bad luck for JLR.
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Old 17th May 2019, 16:49   #6
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Tata Motors Looking to Sell JLR!!!

Stories about a potential take over by PSA is coming out. Tata denied it last week and JLR CEO has also denied any talks taking place.

https://www.theguardian.com/business...sale-psa-group

https://www.theguardian.com/business...to-frances-psa
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Old 20th May 2019, 14:11   #7
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Re: Rumour: Tata Motors selling minority stake in JLR

Owning Jaguar-Land Rover is not only a matter of pride for Tata Motors, but it also makes immense business sense over the longer term. In many of the recent years, Jaguar-Land Rover has delivered huge profits to Tata.

Tata - as a group - has enormous resources & loves the British company. I doubt it'll ever sell a minority stake, especially to another car maker!
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Old 20th May 2019, 16:36   #8
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Re: Rumour: Tata Motors selling minority stake in JLR

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Originally Posted by GTO View Post
Owning Jaguar-Land Rover is not only a matter of pride for Tata Motors, but it also makes immense business sense over the longer term. In many of the recent years, Jaguar-Land Rover has delivered huge profits to Tata.
Couldn't agree more, the brand perception started to change recently even though the acquisition happened back in 2008, I feel somehow people started to observe and recognize this influence in present Tata cars. Tata wouldn't want to take a step back when they are gaining momentum.

Last edited by SpideyBoy : 20th May 2019 at 16:56.
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Old 20th May 2019, 18:05   #9
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Re: Rumour: Tata Motors selling minority stake in JLR

Some respite has arrived for Tata Motors. The group has posted a profit of Rs 1117 crore in the 4th quarter compared to a Rs 27000 crore loss in the 3rd quarter due to a turnaround in Jaguar Land Rover's business as well as the domestic market .

Tata Motors CFO expects JLR's China sales would return to growth after another quarter.


Sources : https://www.business-standard.com/ar...2000970_1.html

https://www.bloomberg.com/news/artic...d&cmpId=google

Last edited by rupdeb : 20th May 2019 at 18:08. Reason: Added quarter information
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Old 21st May 2019, 10:24   #10
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Re: Rumour: Tata Motors selling minority stake in JLR

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Some respite has arrived for Tata Motors. The group has posted a profit of Rs 1117 crore in the 4th quarter compared to a Rs 27000 crore loss in the 3rd quarter due to a turnaround in Jaguar Land Rover's business as well as the domestic market .
Tata Motors CFO expects JLR's China sales would return to growth after another quarter.....
Amen to that - hoping that this is just a temporary hiccup! And with the exit polls predicting a return of the Modi sarkar (and the consequent boost to the markets, as already reported) I'll keep my fingers crossed that TML hold on to their crown jewel!
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Old 21st May 2019, 12:03   #11
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Re: Rumour: Tata Motors selling minority stake in JLR

Q4 Results: Tata Motors’ Profit Nearly Halves As JLR Pain Continues

"Tata Motors Ltd.’s profit in the quarter ended March nearly halved but beat analyst estimates as muted sales in India and difficulties with its Jaguar-Land Rover unit continue.

Profit fell 47 percent over last year to Rs 1,117.5 crore, according to its stock exchange filing. That compares with the Rs 570-crore estimate of analysts polled by Bloomberg."


Source -

http://www.bloombergquint.com/amp/qu...pain-continues
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Old 18th September 2019, 19:18   #12
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Re: Rumour: Tata Motors selling minority stake in JLR

Analysts Think BMW Should Buy Jaguar Land Rover From Tata.


BMW should buy the British luxury brand from India's Tata Motors.

Quote:
BMW is overcapitalized and awash with cash. It has run into the limits of growth for its product range and brand,
Quote:
JLR is severely challenged, both operationally and financially, but could massively lower both its fixed and variable costs under the wing of a bigger partner

Link

Last edited by volkman10 : 18th September 2019 at 19:19.
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Old 18th September 2019, 20:42   #13
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Re: Rumour: Tata Motors selling minority stake in JLR

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Originally Posted by volkman10 View Post
Analysts Think BMW Should Buy Jaguar Land Rover From Tata.


BMW should buy the British luxury brand from India's Tata Motors.

Link
The same article also mentioned that the Bavarian giant is quite scarred by their previous ownership stint and may not be ready to buy in. Apparently they are already collaborating on electric cars currently.

Drive on,
Shibu.
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Old 18th September 2019, 21:45   #14
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Re: Rumour: Tata Motors selling minority stake in JLR

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Originally Posted by shibujp View Post
Apparently they are already collaborating on electric cars currently.

Drive on,
Shibu.
With Mercedes, no less, on electric and autonomous vehicle technologies.

Don't see any chances of Jaguar fitting into any of their plans. Jaguar needs BMW more than the vice-versa.
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Old 19th September 2019, 10:35   #15
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Re: Rumour: Tata Motors selling minority stake in JLR

Most German companies have no idea how to handle legacy companies when taking them over. Daimler failed miserably with Chrysler. BMW could not handle the UK unions and old systems. They did succeed in virtually building new plants (Hams Hall engine plant) and gutting and refurbishing the Mini plant in order to start from scratch.

VW has had success with Skoda as the company had a more subservient culture. Lamborghini was too small to impose their systems but it helped to put an Italian-phile - Herr Ing. Winklemann in charge. Seat has been a basket case till recently, most of the plant was used for VW Polo's and Audi Q3's.

It will be too much of an upheaval to take on JLR. In its most significant growth market, JLR have collaborations with Chery. BMW with Brilliance, will these JV's need to be unravelled? BMW would be too exposed at the top end of the segment. At the most, BMW should invest in JLR as a technology partner to spread its research costs. Perhaps, similar Renault -Nissan alliance but without anyone dominant partner over-ridding the other.

BMW are better off investing the profits in making more radical exciting cars as opposed to the current, same sausage different type approach!
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