Topic: Tata to buy Ford luxury brands for $2.65bn - reports

[airbalancer]

http://www.just-auto.com/article.aspx?ID=94255&lk=dm

25 March 2008 | Source: just-auto.com editorial team

Tata Motors has closed a deal to buy Ford's Jaguar and Land_Rover brands for $US2.65bn, according to Indian media reports.

According to Reuters, Indian news channel NDTV Profit, citing unnamed sources, said on Tuesday the deal would be announced around midnight Indian time (18:30GMT).

However, a Tata Group spokesman told the news agency discussions were still going on and the company had no guidance to give on the deal.

"We have nothing to tell you now," he told Reuters.

A source with knowledge of the deal told just-auto Ford planned an announcement at 12:00GMT on Wednesday - late afternoon in India and ahead of the 9am New York stock exchange opening in the US.

According to Reuters, CNBC TV-18, also citing unnamed sources, said the deal was likely to be signed on Wednesday and details of the agreement would be known only after the sale purchase agreement was signed by Tata Motors.

[si]

 

ahead of the 9am New York stock exchange opening in the US.

I'd buy buy buy!!  stocks will only go up, no?

[tenpenny]

Now we'll have a never ending supply of jokes along the lines of

'a beaudacious set of tatas'

[mmret]

I'm sure this has been mentioned before but it is slightly amusing that an Indian industrial concern is buying up two of Britains most famous auto brands.

How much for Aston? FAW going to buy?

[initial_D]

 A Great Deal for Ford. Both brands are bleeding very bad.

[unctuous]

I didn't think the quality of those two brands could get worse.  I guess I was wrong.

[Mitlov]

I didn't think the quality of those two brands could get worse.  I guess I was wrong.

Why are you assuming that Indian ownership will be bad for the brands?  Malaysian ownership has been great for Lotus...

[Mitlov]

I'm sure this has been mentioned before but it is slightly amusing that an Indian industrial concern is buying up two of Britains most famous auto brands.

How much for Aston? FAW going to buy?

I didn't think Louis Vuitton had put Aston up for sale already?

[UmroAyyar]

TATA group has close relationship with FIAT and TATA group chairman sits on FIAT's board. Lets see what else comes out of this.

[safristi]

Fiat & Tata..........a Fitata...........yummy Italian wattsits....can't wait ta sink my teeth into ONE or BOTH................... .....................I imagine the New JAG will be quite the GOA...with a bit of LUCKNOW..the AGRA will subside and ALLABHAD designs will be across the PONDICHERRY...the Land Rover JODHPUR will be the KOLCATA on ABU ROAD..but BEAWAR MORDABAD engines could JAMNAGAR and BANGALORE thing up .....................TaTa fer NOW.......

[The Mighty Duck]

I didn't think the quality of those two brands could get worse.  I guess I was wrong.

What do we call it when we make judgments about people based on their country of origin?  Hmm...

[initial_D]

If Tata can build a waterdown Jag for under $10,000, I will BUY IT!

[marineboy]

A Great Deal for Ford. Both brands are bleeding very bad.

If you don't count the fact that Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. They will only net 1.7 billion in this deal after paying out a further 600 million in pension debt.

[unctuous]

I didn't think the quality of those two brands could get worse.  I guess I was wrong.

What do we call it when we make judgments about people based on their country of origin?  Hmm...

Judgment was made on a company, not people.

Last time I checked,  India was not known for their auto manufacturing prowess.  I would have made the comment if the vehicles were made in Russia/Eastern Europe or almost any developing country. 


You sound like a lot of fun Daffy duck.  Can we hang out some time?

[ghost]

As long as Tata remains in the shadows and dole out money for Jaguar and LR, the Brit Marques will continue to hum along. But if we start seeing Tata labels on the car battery or "Handling by Tata" type of involvement, then the brit marques might as well close shop now. People perception is the reason why there are premium brands.

[CyberNick]

This was briefly mentioned on the CBC radio news today.
 
The headline was "Ford says TATA to Jaguar and Land Rover".

[Spheric]

Love it ! 

[initial_D]

Love it ! 

 

[initial_D]

A Great Deal for Ford. Both brands are bleeding very bad.

If you don't count the fact that Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. They will only net 1.7 billion in this deal after paying out a further 600 million in pension debt.

Think Ford got off rather easy, when compare to the cost of GM's Bad Intention on Fiat, and MB's fling with Chrysler.

[PJungnitsch]

The billion or so difference between purchase price and selling price is nothing for Ford. What really hurts is they pumped tens of billions of development dollars into Jag and Landrover, while getting virtually nothing back in yearly returns.

And most importantly at the same time they starved the Taurus, Focus, Ranger etc. of development.

'We had no money for them, we spent it all on pickups and SUV's'.

Absolute bullcrap. They had the money, Ford executives just preferred to throw it down the sinkhole of those high profile luxury brands while ignoring the entry level/regular Joe lineup.

Something that is truly biting them in the ass now.