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Ford Looks To Tata For Cash
by Stephen Walker
7th January, 2008 | ||||
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Lewis Booth, executive vice president – Ford of Europe and Premier Automotive Group
(Chairman – Jaguar, Land Rover, Volvo and Ford of Europe) has indicated: “Ford is committed to focused negotiations
at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar Land Rover business.”
"There is still a considerable amount of work to do and while no final decision has been made, we will proceed
with further substantive discussions with Tata Motors over the forthcoming weeks with a view to securing an agreement
that is in the best interests of all parties concerned." This statement confirms the intense speculation in England that Tata Motors, the Indian based vehicle manufacturer,
is the leading contender for Ford's British based Jaguar and Land Rover operations which have been quietly (but well
known within the industry) for sale for many months. The motivation for the sale is Ford's strong desire for cash to fund the continuation of the business which has
incurred massive losses in recent times. Tata (whose ute is shown above) has managed to gain an advantage over other bidders, who include Mahindra & Mahindra
(also from India) and US based private equity funds. Speculation suggests Tata, if they complete the Jaguar and Land Rover acquisition, will maintain production of the
British marques in England for the foreseeable future. The interest expressed by two leading Indian vehicle manufacturers confirms the obvious strength of the Indian vehicle
manufacturing industry and suggests that India will be a market of significant interest in coming years. | |||||
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