Indian conglomerate Tata has acquired Ford’s ailing brands Jaguar and Land Rover for $2.3 billion.
For years, Jaguar has been a millstone round Ford’s neck.
We find it hard to accept that this is a smart business move from the Tata Group.
For several years, Lexus, BMW and Mercedes have made mincemeat of Jaguar.
Jaguar has not had many takers for years and it seems doubtful that rich Americans and Britons will flock to buy a luxury car owned by a third world company.
Would wealthy Indians buy a luxury car made in Bangladesh?
The transfer of ownership to Tata Motors is expected to happenÂ by the end of the second quarter of 2008.
Founded in 1922, Jaguar has been amongst the worst premium brands for luxury saloons and sports cars.
Land rover’s first design appeared in 1948.
Jaguar and Land Rover have been under Ford’s ownership since 1989 and 2000 respectively and together have about 16,000 employees.
As part of the deal, Ford promised to continue to supply Jaguar and Land Rover for differing periods with powertrains, stampings and other components.