The Hindu : Front Page : Tata Motors acquires Jaguar, Land Rover

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Thursday, Mar 27, 2008
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Tata Motors acquires Jaguar, Land Rover

Ratan Tata promises to “preserve” brand identities

A Jaguar XF automobile on display — File photo

Hasan Suroor

LONDON: Tata Motors on Wednesday announced its entry into the international luxury car market with some style as the company snapped up two of Britain's most famous names in automobile manufacturing, Jaguar and Land Rover, in a $2.3 billion deal with Ford, their American owners.

"Ford says Tata to Jaguar'' declared a front-page headline in a British newspaper as the country woke up to the loss of a bit of its motoring history in a classic case of the empire striking back.

The deal, which followed months of protracted negotiations and is seen as yet another sign of Indian industry's growing global ambitions, is the latest in a string of foreign acquisitions by Tatas, including the Anglo- Dutch steel company Corus and Tetley Tea.

Ratan N. Tata, chairman of Tata Sons and Tata Motors, who has led his company's aggressive acquisition spree abroad, promised to "preserve'' the iconic identities of Jaguar and Land Rover as analysts wondered whether they were really the right "fit'' for a company which is known more for its hardy trucks and cheap cars.

Reiterating his previous assurance that he would not "tinker with the brands'' and retain their "image, touch and feel,'' Mr. Tata said in a statement: "We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact.''

Alan Mulally, president and CEO of the Ford Motor Company, said he was confident that the brands would "continue to thrive under Tata's stewardship.''

Both brands would continue to be manufactured in Britain with Ford continuing to supply components and technology over a mutually agreed time-frame. The future of the 16,000 employees at Jaguar and Land Rover's U.K. plants in the West Midlands and Merseyside was said to be safe at least for now though there were fears that if business remained sluggish job security could become an issue.

Tata Motors said the employees, trade unions and the U.K. Government had been kept informed of developments and they had "indicated their support for the agreement.''

It also said that the parties did not anticipate any "significant changes'' to the employees' terms of employment adding that Ford would contribute approximately $600 million to the pension plans.

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