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Ford, Tata deal more complex and expensive than first thought

01/18/2008, 1:10 PM

By Drew Johnson

Late last year, Ford named Tata Motors of India as the preferred bidder for its Jaguar and Land Rover brands. Tata reportedly placed a bid of $2 billion for both luxury marques, but the final cost will actually be much higher, a new report finds.

According to the Times of India, Tata is actually negotiating between 15 and 20 deals with Ford. The additional negotiations including engine supply, as well as the supply of key components and technology.

The Times of India also indicates that Tata will need access to Ford’s research facilities to upgrade the Jaguar and Land Rover product line.

Both Ford and Tata are keeping tight-lipped on the latest rounds of negotiations, but look for the final price of the two brands to soar north of $2 billion mark.

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01/18, 1:15 PM

posted by:

sharpie

This is actually better for Jag and LR. I just don’t think Tata has the skills and expertise to keep up with the two brands. As for Tata, I am starting to sense a repeat of Hyundai (helped by Lotus at some point in technology) although it has a long way to go.

01/18, 1:15 PM

posted by:

philsshon

hey more money for ford to deveolp a new rwd lincoln.

oh, and FIRST POST BITCHES! lol

01/18, 1:23 PM

posted by:

Veda

Jag should focus on the beautiful styling and outsource everything high tech, I’d still buy it.

01/18, 1:34 PM

posted by:

HoosierHero

Learn to count philsshon, and why would Ford make this deal if they are going to be so heavily involved?? They might as well keep the brands then. Let Tata make more “Tatas”. The world needs them!

01/18, 1:36 PM

posted by:

CTS DRIVER

“The Times of India also indicates that Tata will need access to Ford’s research facilities to upgrade the Jaguar and Land Rover product line”
.
if they want the brands the better be able to do the engineering and upgrades themselves, otherwise everybody has been right about tata not being the right buyer.

01/18, 1:59 PM

posted by:

frylock350

I doubt Ford will let Tata have any part of their research facilities.

Jag and LR’s fates are now sealed. They were great while they lasted….

Oh well Ford can now invest the money in Lincoln.

01/18, 2:02 PM

posted by:

lucklaster

Huge and complex. Ford needed to keep one foot in the door to get someone to shell out that kind of change. Spread the responsibility. I still can’t imagine this. Don’t know if I would ever buy one of these.

01/18, 2:07 PM

posted by:

Veda

CTS DRIVER: No big auto company would want those two brands as they don’t make that much compared to what they currently have. Unfortunately for Jag and RR they need the technologies from those companies. That’s why they need to outsource directly to well known auto suppliers. Chassis from Lotus, ZF for transmission, etc etc… I’m sure they won’t turn down a business.

01/18, 2:19 PM

posted by:

gizmo2

With the new union deal if Ford don’t really need the cash flow to move forward and just want to get rid of these 2 brands because they keep dragging them down, they should keep them. I agree with out sourcing the technology and keeping the names. Both brands already do a pretty good job at sytling, it’s quality killing them.

01/18, 2:20 PM

posted by:

johnnycanuck

I hope Ford is smart enough to milk this for all it’s worth. This is like you or I buying a bakery and paying someone else to make the dough. Go ahead Ford, let them play in the R&D nursery. Chances are they won’t know what the f*ck they’re doing anyway, but make them pay dearly for the privilege.

01/18, 2:48 PM

posted by:

Scarface03

Guys, I think Tata is on to something here. This may not spell doom for LR and Jag, and may actually portend the beginning of a somewhat decent car selling model, and it shows that Tata is serious about the marques.

If Tata can run around Ford’s R&D kindergarten, that’s great, Tata doesn’t need to spend the huge capital costs associated with that. And if Ford can license the engines and tech., all the better for Ford. Let Ford be as involved as it wants to be–it’ll get paid along the way, and it can pretty much avoid the stuff it didn’t do well with LR and Jag anyway–design, market and sell quality cars.

Nothing new going on here. Who here doesn’t love a Ferrari? But it’s hard to believe that virtually none of your favorite Ferraris of all time were penned by someone who actually worked for Ferrari.

Tata can get the job done. I’m hopeful…. for now….

01/18, 2:59 PM

posted by:

global_lightning

This is a win/win. Tata gets Ford’s R&D, Ford profits from the one of the world’s largest growing segments without dedicating significant resources. Next stop: China.

01/18, 3:46 PM

posted by:

lucklaster

brilliant LP.
just sign on the line………

01/18, 4:01 PM

posted by:

meanpants555

Read up on Ratan Tata; he seems like a cool dude with passion and cash, always an excellent combo.

01/18, 4:02 PM

posted by:

meanpants555

Maybe Ford has regrets for selling off Aston Martin and doesn’t mind having a finger in the Tata-Jaguar-Land Rover pie.

01/18, 4:02 PM

posted by:

meanpants555

finger… pie… yummy.

01/18, 4:55 PM

posted by:

SwerveEarly

Here is an excerpt of the Indian business man who is leading the negotiations for Tata.
http://au.youtube.com/watch?v=FRCxKE1TPZ4

01/18, 5:28 PM

posted by:

meanpants555

That is hilarious! I want 12 daughters and two monkeys, too. Oh man…

01/19, 6:12 PM

posted by:

corvette

they better be more than $2 bill.

01/20, 3:47 AM

posted by:

CERVIE

will ford still be ford,…in america, same markets, focus

 
 
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