TATA BOUGHT JAGUAR Full Story – After the global recession in 2008, tides had turned and Ford was running in heavy losses and was near bankruptcy whereas TATA motors had recovered from its initial failures, a deal with then Tata motor initiated to buy Ford’s marquee brands Jaguar and Land Rover.
About Ratan Tata
Ratan Naval Tata is an Indian industrialist, philanthropist and former chairman of Tata sons. He was a chairman of the Tata Group from 1990 to 2012.
About Tata Motors
Tata Motors is India’s largest automobile company with revenue of US$ 8.8 billion in 2007-08.
THE STORY OF REVENGE.
Every other person who all are into cars thought at some point that TATA bought Jaguar JLR (Jaguar Land Rover) because FORD insulted TATA MOTORS in 1998- stating TATA doesn’t know how to make cars and even asked not to enter in such venture. thats the reason of rumour of THE STORY OF REVENGE due to which Mr. Ratan Tata spent 12000 Crores Rupees to buy JLR. But the fact is something else.
WHEN IT STARTED.
In 1989 FORD purchased JAGUAR from BRITISH LEYLAND at a whoping cost of 2.5 Billion Dollars, During that era JAGUARS were way much different from today’s JAGs. Today JAGUAR rivals are with brands like Mercedes, BMW, Audi & Volvo Luxury Brand. But before JAGS was the rivals of Bentley & Rollce Royce which all comes under ultra premium segment. During 90’s Ford bought some of the Big brands like Auston Martin, Jaguar & Volvo(6.5 Billion Dollars) and in 2000 Ford purchased Land Rover(2.7 Billion Dollars).
Combining the cluster of these luxury brand FORD launched a different subsidiary named PAG automotive and sales figures were breaking the limits also known as the golden era for FORD.
COMING BACK TO THE TOPIC.
Back in 2006
The FORD MOTOR COMPANY had the worst year in its history, losing 12.7 Billion & suffering sharp erosion of its share of the United States auto market, Just for reference INDIA’s biggest car manufactering Company MARUTI’s per year revenue is near about 13 Billion Dollars. To overcome such a vast loss, Ford planed to close 9 of its plants by the end of 2007, which may help the company to return profitablity in NORTH Amerca by 2009. In March 2007, FORD sold Auston Martin and in June 2007, Ford Floated an offer world wide that JLR is on Sale any one interested can Bid, this was the time when America was going through economic crisis and its stock market was crashing. The bid was owned by TATA in 2008, that’s how TATA saved Ford from Bankrupcy.
VERDICT
1989- Ford got Land Rover for 2.7 Billion
1989- Ford got Jaguar for 2.5 Billion
Total cost 5.2 Billion
2008- TATA Bought Jaguar for 2.3 Billion (60% Discounted price)
Before taking this step TATA sent a his management group and conducted a meeting with the dealers and the management of all the factories globally to get the exact valuation to which they strategically agreed upon for which they some terms and conditions ;
1. If there are any debt is on JLR that will not to be passed on to TATA
and TATA got all the patents & rights of design body engine, access to all the dealers and factories across the globe.
2.TATA in 2008 was the 4th biggest truck maker & 2nd biggest Bus maker and India’s highest automotive revenue generating company , 90% revenue was from Indian Market and rest from Africa. Ultimately this strategy will make TATA rigid Globally, And now 21% revenue is from India and 79% from across the globe.
3. In 2007, TATA acquires Corus Steel in Europe for 12.5 Billion Dollars valuation, which is India’s Biggest Aquiration yet. By the way just for the knowledge the steel vendor for JLR was Corus Steel.
4. After aquiring JLR world wide recognisation of TATA got strong.
FAQs
- At what amount the deal was finalised?
The deal was finalised for 2.3 billion US$ (9300 crore) at that time.
- Was that deal profitable for Tata group?
Yes, it was a profitable deal as Tata make profit of 25 billion pounds
- Which three awards won by Tata for cars?
Reader Award; Best Large off-Roader; Best interior
Some amazing facts
- The order grew through the year to reach 168,471 units as on March 2022 including 45,584 orders for the New Range Rover and 40,618 for defender.
- Land Rover Defender won the World Car design of the year award at World Car Awards in April 2021
