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Jaguar and Land Rover sale fears grow
10 January 2008
Tata credit rating is negatively affected by proposed deal
Fears surrounding Indian carmaker Tata Motors' expected acquisition Jaguar and Land Rover have escalated. Credit rating firm Standard&Poors has put the company on credit watch with negative implications after concluding that the acquisition could have a negative impact on the company's corporate credit ratings.
Last week Ford singled out Tata as the official frontrunner for the British brands when it announced it had entered into focused talks with the carmaker. Share priceTata's share price has performed tentatively since the company expressed its interest in Land Rover and Jaguar in July. The carmaker would be radically changed by a deal with Ford - owning Land Rover and Jaguar would move the brand into the premium sector and position it as a global player in the automotive market. Meanwhile, Tata is to launch its $2,500 (£1,273) People's Car later today. Environmentalists fear the already congested roads of Indian cities will be clogged further by such an affordable vehicle. HAVE YOUR SAY
Comments
WN says:
The speculative comments made by JS, are just that, speculative.
The deal has not been signed it has yet to go to the "Memorandum" stage.
The combined JLR workforce agreed to secondment in 2007 in order to help with product balancing across the West Midlands production sites.
As for a "hive off" of Jaguar from Land Rover this too is pure speculation.
At this moment TATA is interested in buying both brands .They would have to make their intention known to the DTI and the Unions if this involves a hive off. The JCB connection with Jaguar stems from an old comment made by JCB who expressed and interest in Jaguar but not Land Roverin 2005/2006.
JS ought to know better but doesn't, and their "reliable source" would know better than to speculate.
However, it is a fact that there is no love lost between the 2 brands and Land Rover feels it has consistently propped up the failing Cat for too long ,whilst being told that the Jaguar build process and methods are world class ( but they don't make any money). Couple this with a significant difference in working conditions and terms across 3 production sites ,and you can see where the hot bed of romour mongering gets its fuel.
The Brands are strong ,a bright future will only depend on all of us at JLR continuing to make the best products as efficiently as possible ( for whoever owns us)
16 Jan 2008 15:38:07
Peter Foran says:
What's in a name, when we mention the name Tata, SangYong and Percy Prendaville it doe's not inspire any confidence or enthusiasm into the hearts of any traditionalist, I mean Tata is what your "Granma" used to call you when you had committed a huge "gaf" and coming from India were there is no precedence of any success in the British motor indusrty it is hardly surprising they scare the living daylights out of us all.
But let's be realistic about this, it is the sign of the the times and we will have to get used to this happening in all manner of businesses whether we like it or not, and lets be honest if there are no British entrepreneurs or institutions willing to take on two of our most beautiful, outstanding and respected companies then what chance have we. Bring on the Indians.
15 Jan 2008 14:29:41
JS says:
I am an employee at Land rover,solihull, and we have heard from a fairly reliable source in T5 Trim an final assembly,that the Tata deal has already been signed and sealed..with Jaguar already being sold on to another manufacturer, rumoured to be JCB, who initially wanted to purchase Jaguar group..
the source also said that there were intentions to use secondment to relocate approx 500 staff from land rover sites, to jaguar in castle bromwich..Then after six weeks,announce the sale of jaguar to th press.
15 Jan 2008 10:52:09
Scott Reid says:
There is no point in anybody pulling Tata in bits. They are a huge worldwide company with a bank account the same size as South America. With this, they can put massive funding into these two great marques. If they can pull an ailing British Steel (Chorus) around, there is no reason why the same can't be done with these instances. Be honest, Ford have left them both on a great footing.
15 Jan 2008 10:51:53
Dennis Squitieri says:
great brands are great brands just like good real estate...jaguar is 57th and 5th ave. it just takes time...who would have ever thought the average price of an apartment in manhattan would be $1.7 million hang in there and make beautiful, fast cars that are always in style
11 Jan 2008 15:55:54
SPM says:
This is nothing political - the financial industry thinks JLR is a bad buy for Tata which is cash rich and has an excellent credit rating, due to JLR's loss making history and future environmental regulations. JLR certainly lost a lot of Ford's money hence the fears for Tata.
11 Jan 2008 15:55:53
Brian McLean says:
I wonder if there is any politic element in the timing of S & P's downgrading decision given the negative comments made in the U.S about a possible Indian company takeover ?
10 Jan 2008 11:26:21
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