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.
