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[update] Union backs Tata’s bid to acquire Jaguar, Land Rover

11/26/2007, 8:32 AM

By Nick

Two India-based automotive companies — Tata Motors and Mahindra & Mahindra — and one American investment firm — One Equity Partners — are the only suitors remaining in the bidding war to buy Jaguar and Land Rover from Ford, but one company appears to have taken the lead.


All three companies recently presented to the Unite trade union, with the union backing Tata Motors. “Based on serving the best interests of the union members at Jaguar-Land Rover, the stewards agreed that Tata best fits these criteria,” the union said in a statement.

According to the Financial Times, Tata is also committed to the brands as a long-term investment and supports the current management. Tony Lewin, a British correspondent for Automotive News, also revealed that Tata plans to keep production in the UK, alleviating concerns of Jaguar and Land Rover employees. “Tata is seeking to establish a major European vehicle development center, marking it as a serious global player. Tata’s European engineers, many of whom have been recruited from the former MG Rover, are currently housed in temporary accommodation on the campus of Warwick University. Jaguar Land Rover’s engineering and design centers at Gaydon and Whitley are only a few kilometers away and are large establishments likely to welcome the security that would come with the incorporation of Tata work as well,” Lewin said.

The sole European investment firm, Terra Firma, dropped out of the bidding, as did American companies Ripplewood Holdings and TPG Capital, according to Reuters.

As previously reported, Ford expects to conclude the bidding process and sell the two companies by the end of this year. “We are still looking at the end of this year or the beginning of next to conclude the process,” a Ford spokesman was quoted as saying.

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11/13, 2:49 PM

posted by:

LP640

what the hell would India contribute to Jaguar and/or Land Rover, Plus what the **** does an investment company know about cars??
Just Sell them to the VW group/ BMW

11/13, 2:58 PM

posted by:

CTS DRIVER

bmw squandered their chance and dont deserve another shot. seriously there is nobody in brittain willing to bring theese once prestigious brands home where they belong? at least if an american firm gets them the british jobs will be secure.

11/13, 3:11 PM

posted by:

jamaicandude

I still can’t imagine LR and Jag being owned by an Indian company… these British luxury car marques and Indian just don’t sound like they belong in the same sentence together. That’s not to say they won’t do a good job though… but I’m still skeptical. Well, There’s gonna be an Indian team in F1 next year too, so I guess why not?

11/13, 3:12 PM

posted by:

jackjimturkey

How proud

11/13, 3:14 PM

posted by:

global_lightning

The Indian companies are an interesting proposition. Ford could gain a minority position in the companies, giving them access into one of the fastest growing markets. After the X-Type fiasco, Jaguar’s name in the U.S. is mud, and LR is pulling out of years of funk. The future is China and India.

11/13, 3:25 PM

posted by:

carguy70

I wish some British Wealth would regain control of Jaguar/Land Rover. When I think Jaguar or Land Rover/Range Rover I think ENGLAND!!—Tea and crumpets!—Hammer Films!—Sherlock Holmes!—James Bond!—JAGUAR!—Land Rover!

11/13, 3:37 PM

posted by:

autonut

The biggest investor in America was England all during XX century. I think smart money knows that buildings in Manhattan, Miami, Los Angeles and SF is more profitable then Jaguar and Land Rover put together.
American Investment house can fix those companies. The problem they have is product mix and quality of their products. Those are topics covered during the second semester of MBA program. Fire marketing schmack, bring one from Infinity (Lexus is spoken for), fire COO and hire one from Honda (either British or US). Honda builds great cars in US and UK.
Restore corporate brand and sell each company separately at a higher cost.
Indians will be building Jags and Rovers in India and that will be one funny coup de grã¢ce: they already play cricket better then brits (and Italians play better football). Looks like in Britain they do know how to drink their tea in a proper manner.

11/13, 3:45 PM

posted by:

SwerveEarly

These companies have been bailed out by the Gov’t, passed around by foreign entities like Paris Hilton on a all night beneder for over the last 20 years now. Let them run there final cycle out in India. Atleast there are real Jags in India.

11/13, 4:02 PM

posted by:

CA36GTP

Indians and other middle eastern types are taking over Britain, this doesn’t really surprise me.

You what would be really out there? If GM bought them, merged Land Rover into Hummer (Land Rovers are **** anyway), and sold Jaguars as a niche brand above Cadillac. That’d just be fuggin weird.

11/13, 4:09 PM

posted by:

meanpants555

Don’t undermine India which has an explosive economy and a growing middle class. There is a tremendous amount of investing in India and its infrastructure. If they want to fund Jaguar and Land Rover, so be it.

11/13, 4:52 PM

posted by:

jackjimturkey

CA36: GM should bring back the LaSalle brand, and produce hyperluxury rigs

11/13, 5:00 PM

posted by:

johnnycanuck

I find this development extremely interesting. First of all to the purists: who gives a **** where a car is built or who’s signing off the R&D cheques- just make sure it’s worthy of the marque. And in reference to next years F1 ‘Team India’, it wasn’t that long ago ( anyone remember Eddie Irvine? ) that Jaguar was in the sport. Might we be seeing the regenesis of Jaguar’s F1 aspirations? I, for one, would rather that than all these ‘B’ teams that exist in F1’s current iteration.

11/13, 5:19 PM

posted by:

441Zuke

the jaguar curry

11/13, 5:22 PM

posted by:

GARY

Their first car is going to be called the 7-11.

11/13, 6:23 PM

posted by:

TOZO

It’ll probably be sold at the 7-11 anyway. Mahindra was supposed to be out of the running! Mahindra and ugly-ass Scorpio truck! Does Cerberus not see how neatly Jaguar/Land Rover badge engineering could potentially overlap with Chrysler? They should really get back into the race.

11/13, 7:16 PM

posted by:

Commodore

It will be won by one of the Indians. They have a bigger desire to win the British brands, because unlike the American investment firm that just wants to make money, the Indian automakers have a special sense of pride from owning 2 British brands, considering Britain ruled India for so long. It like the former slaves enslave you.

11/13, 9:42 PM

posted by:

autonut

For one India does need Land Rover: roads are the worst. They would not complain about quality either: they’ve been building ’40s Morris well into late 80s. Limies will be pissed off ’cause they would loosing jobs. Aston Martin what is your take on this development?
Cerberus is in business of making money and according to Money magazine they are into American Icon. They feel that they will make it work. And they did all the right moves so far with new management. The old guard I think there in caretaker capacity and will be gone soon enough. There is nothing for Cerberus to gain from British labour trouble. then again it maybe them who is in the running.

11/13, 10:47 PM

posted by:

sam

Guys… Don’t forget that all the money Brits made where stolen from India… Even the diamonds on the queens crown where stolen from India…Britons might have been rich for sometime…. before that India was a rich country… someone else before that… its just a cycle. no one rules the world throughout…don’t get surprised if India or China …………………..

11/14, 12:36 AM

posted by:

sharpie

Surprise no Chinese firm entered bid. The brands may evoke some British sense, but companies have gone global with operations all over. They all have stakes in one another too, so really Indian may feel like owning something that was form Britain, but it’s really just two car companies. With the strong Euro, any one of the three bidders will probably close Jag’s Coventry plant and build cars elsewhere. In the end, they are just brands with British heritage that had been watered down long before they were acquired.

Same goes for Mini.

11/14, 12:50 AM

posted by:

Got Handling?

India makes a lot of sense, Brits (apart from the Northerners) are too well-paid to get their hands dirty building anything but the most expensive of cars and the old empire connection ties in nicely with the British feel of these brands.
.
India’s upper classes are fast regaining the prestige they enjoyed at the start of the twentieth century and unlike the Arabs, they have actually achieved their new wealth through hard work, education and good business. Their recent acquisitions of major international companies and high-profile brands such as an F1 team will all contribute to moving international attention away from their enormous poverty problem and toward their successes. I don’t think that there would be any stigma attached to an Indian Range Rover in a few years time.
.
Sam, its not true that all the money Brits made was stolen from India, they got a fair bit of it from Africa and North America too.

11/14, 2:05 AM

posted by:

alfa_Romeo

Don’t underestimate TATA…
they already own a couple of British (tetley tea) and European brands (Hispano Carrocera S.A) and make software for Ferrari f1 team……
and the merc factory in india was awarded the best factory (outside germany) award atleast twice…….
But i dont think they will take the production out of europe, instead they will use the technology for making cheap cars for their brands and let Jag and LR be seperate entities….

11/14, 2:46 AM

posted by:

Blakkarr

The Indians make the winning bid: I would loathe to call tech support. The mechanics would, too.

The Americans (an Equity group) win it: The jury is still out. Cerberus has yet to do anything to give me pause one way or the other.

11/14, 7:59 AM

posted by:

JohnnyBlazE

I really dislike Indian call centres too Blakkarr, and I’m Indian!

I am skeptical about TATA owning the companies, but it could go either way. The people here mentioning India’s economy and the growing middle class are correct…

11/14, 3:32 PM

posted by:

SunSetsOnEmpire

MY FIRST AND LAST COMMENT ON LLN
i never post, but i had to this time
as an american, i beleive india really does deserve this because they were plundered of resources, freedom and dignity when those lobsterbacks invaded

to have the queen rolling in a car made by india… thats called karma haha

besides, do u know the world’s richest man is no longer bill gates… its an indian- 65 billion

11/14, 7:02 PM

posted by:

CTS DRIVER

^i thought it was that Mexican media tycoon, but that changes.
come on man join in dont let this be your last post.

11/21, 11:49 AM

posted by:

jackjimturkey

bodacious ta-tas!

11/26, 8:47 AM

posted by:

CA36GTP

England continues to sell itself to India piece by piece. Shame that a country that used to have such culture is now a cesspool of Arab refugees and Indian opportunists.

As for whoever said that the English won’t get their hands dirty, you’re an idiot. Ever heard of the Honda plant in Swindon?

Regardless of whether or not quality falls at Jaguar/Land Rover (not that it was up very high to begin with), they won’t feel the same to me.

11/26, 9:33 AM

posted by:

Rotman

Well, with regard to Indian business conduct, it will probably take at least 13 years before all papers are signed by the requested 21.569 people who have to have at least 7 stamped and signed copies of each sheet before they even think about actually making a deciscion and pick up a pen to sign the bloody contract.
/rant

11/26, 1:05 PM

posted by:

LP640

Piss off Tata !

11/26, 2:00 PM

posted by:

Scarface03

I, like others, don’t feel like it matters who foots the bill and reaps the rewards. And no one said anything about an equity firm needing to know diddly about cars.

What matters to the enthusiast is the same as what probably matters most to the employees–owners who give a damn, have a plan, and the money and brainpower to back it up. Tata says it will keep management and production in place, establish a European development center, and already has strong British ties to coordinate with existing Jaguar and Land Rover engineering centers. This show an intent to make Jag/LR strong again and a receipe by which to do it.

I don’t recall Cerberus ever going on record with as much dedication to Chrysler’s future. A couple failed models, a union setback or two, and a handful of poor sales quaters strung together, and Chrysler may find itself begging for Indian ownership.

11/26, 7:30 PM

posted by:

1c3d0g

Bah! : evil:

11/27, 12:32 AM

posted by:

sharpie

Car companies own a stake in each other nowadays. Really why is it so bad for Tata to own them? Ford is an American company and America started out as British colony too. Resources were taken until the Declaration of Independence. I don’t see the difference between an Indian company owning a British company and an American company owning it. Both were former British colonies owning a British company.

Sure if Sir Richard Branson (or some other rich British) would come “rescue” Jaguar and LR, that would be great, right? I think the Brits missed the boat. They should have saved the British Leyland group back when it fell apart. Instead, we have all these British brands owned by German, American, Swedish and so why not Indian? Bottom line, money talks.

 
 
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