Tata Motors Chairman Ratan Tata on Tuesday said the global financial crisis had posed challenges to marquee brands Jaguar and Land Rover, but the $2.3-billion acquisition of the iconic brands was “worthwhile.”
“There has been a lot of commentary, expert opinion alluding that JLR acquisition is too high priced and endanger our well-being. I emphatically refute this. Yes, there could be challenges; it is not caused by the product or portfolio. It is caused by the global phenomenon,” the Tata Motors Chairman said at the company’s annual general meeting here.
“The acquisition is much worthwhile. One or two years are not anything in the life of a corporation. What you see is not because of acquisition, but what followed it,” he added.
Home-grown auto major Tata Motors had on June 2, 2008, completed the JLR acquisition from U.S. automobile giant Ford Motor Company for a net consideration of $2.3 billion.
Mr. Tata said the JLR acquisition gave Tata Motors a space in the high-end sports utility vehicle segment and access to technology.
Tata Motors, he said, was looking at buying Land Rover, which had been the mainstay of army and police vehicles in many countries, but the offer came along with Jaguar.
“I am confident that Tata Motors and JLR would come out of this (slump). We have to face challenges in cutting costs and improving margins. Several initiatives are in place both in Tata Motors and JLR,” he said.