Clouds on the horizon for Jaguar, Land Rover and Tata?



What appeared to be a done deal just a couple of weeks ago, the sale of Jaguar and Land Rover by Ford to Tata, is still under discussion by all parties. And to throw a possible wrench into works, Moody's Investor Services is casting some doubt as to whether this is even a good idea.

"Should (Tata Motors) proceed with the transaction and acquire these two businesses, it will face considerable execution and integration challenges," Moody’s said. The rating service noted that though Tata has a strong position in the low-to-medium segments in India, the acquisition of Jaguar and Land Rover would expose the company to the luxury product segment in wider global markets, which would increase the material risk to the automaker.

So, what all this mean? Don't know yet—but stay tuned...

Here's AutoObserver's take: Jaguar, Land Rover Good Fit for Tata? Moody’s Says Possibly Not

Posted by Bob Jan 8, 2008 5:00 am

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Categories: Ford | Jaguar | Land Rover | Tata Motors | Auto Industry


Comments

estreka - Jan 8, 2008 9:58 am (#1 Total: 2)  

 
subarctic north - Great Falls, MT  
For the price? Absolutely not. I don't care how much prestige is involved with the nameplates. Who pays billions of dollars for money-draining assets?

ateixeira - Jan 8, 2008 12:09 pm (#2 Total: 2)  

 
Recife, PE, Brazil  
Increased risks, yes, but it also diversifies their business significantly.
 
Plus, if they could move the headquarters of both companies to India, think about the cost savings.
 
This is one case where centralization would save them a ton of money.
 
I'm not saying it'll work, only that there are pros and cons.






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