An Indian Ferrari? Tata interested in buying Ferrari

XeroK00L submitted on 03/07/2008 Official AutoSpies Timestamp: 11:37 AM
from: www.autoblog.com

[42] user comments | category: Misc News

Tags: tata ferrari indian italian aquire buy purchase stake stock share shares takeover

tata ferrari indian italian aquire buy purchase stake stock share shares takeover

It's becoming increasingly apparent that India's largest automaker Tata cannot be stopped. On the verge of finalizing a deal to acquire Jaguar and Land Rover from Ford, Tata is now rumored to be interested in buying a stake in one of the most beloved performance marques of all time: Ferrari. We stress that this is a rumor, because it stems from a quote given by Tata's chief Ratan Tata to Italy's L'Espresso in which he reportedly said that he's always dreamt of being a fighter pilot (takeover of Bob Lutz?) and participating in the shareholding of Ferrari.

The reason this rumor has some legs is that Tata already has an established relationship with Ferrari's parent company Fiat. It's on the board of Fiat and has some engine supply deals with the Italian automaker. Fiat owns an 85% stake in Ferrari with an option to purchase an additional 5%. Could Tata, the maker of the world's least expensive auto, one day have a stake in the company that builds some of the world's most expensive and exotic autos? We wouldn't bet against Tata at this point. Read Article

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w209w114 - 3/7/2008 1:34:15 PMView My AgentSpace

-5 Boost

They are going to run all these companies to the ground. As a cheap car builder they have no idea what it takes to run a prestigious car company.

Ferraris made in India designed and engineered by Indians just KILLS it completely for me.
Its like going to get the best of Italy all the way in India NO WAY, NO WAY, NO WAY.

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macker83 - 3/7/2008 10:29:10 PM

+4 Boost

w209w114 you seem to think that the indians are going to sack all the italian engeneers and workers and sell up the company and move it to india!!!!!!!!! U are a moran if you could possibly think this is going to happen u should be barred for making such a ridiculous comment!!!Get an education!

PintoRacer - 3/8/2008 7:32:42 PM

+1 Boost

Ahhh, w209w114 you are correct... they will the first super car with nipple shaped headlamps.

PintoRacer - 3/8/2008 7:33:51 PM

+1 Boost

shite... *make the

cdoke - 3/7/2008 2:11:04 PMView My AgentSpace

+5 Boost

Oh stop overreacting. I sincerely doubt that TATA is going to buy Ferrari, they may buy some share it however.

Even if they did, they are no more going to design and manufacture Ferraris in India than they are going to design and manufacture Jaguars in India (which they are not).

"As a cheap car builder they have no idea what it takes to run a prestigious car company."

Incidentally, without defining the relationship between the two companies that argument is ambiguous and borderline idiotic. If TATA contributes money through which the product plan of the luxury automobile company is enacted, then what TATA does is ancillary- they may as well be Google for all it matters.

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cdoke - 3/7/2008 3:01:11 PMView My AgentSpace

+1 Boost

No, I wasn't referring to yours. I didn't get mine written quick enough.

pushrod27 - 3/7/2008 3:00:21 PM

+10 Boost

Maybe i'm a little slow today, but i don't get it:
what do rednecks have to do with Italy, India, Ferrari, or Tata???

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macker83 - 3/7/2008 10:13:51 PM

+4 Boost

You just proved that you are an idiot BMW3series.

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rallyss - 3/7/2008 3:26:02 PM

+2 Boost

X2 pushrod27

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PunjabiNYC - 3/7/2008 3:45:15 PM

+2 Boost

Fiat who owns 85% of Ferrari is a cheap car builder too... according to Jeremy clarkson's reviews Ferrari s are getting bit boring so new owner prolly help to bring the craze and finesse back.

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M35MT - 3/7/2008 3:56:34 PMView My AgentSpace

+2 Boost

They can't just "buy" Ferrari. The shares have to be up for sale to begin with.

Shareholders have voting rights. The majority wins.

Example:
Ford doesnt OWN Mazda - the own approximately 30% of their outstanding shares.

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Porschinator - 3/7/2008 4:03:53 PM

+4 Boost

Who said anything about Ferrari's being made in India? A car company can buy a stake in another and not build one single thing or supply parts. I think Tata is obviously looking to make their brand more upscale with purchase of LR and Jaguar. Instead of building from the bottom up Tata wants to buy and go with a running start.

This will also make the Tata company openned to more markets. I can see Tata selling their trucks at LR dealerships around the world.

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mramezani - 3/7/2008 4:05:25 PM

+1 Boost

What the world has come to...
It pains to me witness the shrinking power and influence of American automakers so that Chinese and Indians are given the chance to do as they please with some of the most beloved brands. Shame

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TurboSpyder - 3/7/2008 5:27:26 PMView My AgentSpace

-1 Boost

The Brits and the Germans have lot more in common than the Italians do with the Indians. You can't tell a Brit from a German just by looking at them.

macker83 - 3/7/2008 10:20:48 PM

-1 Boost

well american brands have no influence because the qualiy of their cars has gone to shit and has forced them out of the market as it got more competitive. Brands like toyota bmw mercedes VW had the balls to bring the quality of product to where it is today the american brands didn't have that and thus dont deserve any influence or respect until they get their act together until then, goodday!

no1listensanyway - 3/7/2008 4:33:26 PMView My AgentSpace

-1 Boost

Tata wants to buy a lot of things, too bad their indian.

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CLK63BlackSeries - 3/8/2008 1:40:10 AMView My AgentSpace

+2 Boost

So Indians can't "buy things???" Next time you see an Indian drive by you, make sure and note what they are driving...

henbmw - 3/7/2008 5:16:56 PM

-1 Boost

I have two big Tata's

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CLK63BlackSeries - 3/9/2008 12:42:58 AMView My AgentSpace

+1 Boost

I actually do have one...

ThierryHenry14 - 3/7/2008 7:39:07 PM

0 Boost

What a dumb news. Fiat will not allow Ferrari to be bought by India.

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ThierryHenry14 - 3/7/2008 7:40:21 PM

-2 Boost

Ferrari is not just about financials, its more about national pride. I will bet that if Fiat are several billion in the hole again, the Italian government would bail them out.

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amazinBimmer - 3/7/2008 7:45:08 PM

+3 Boost

go look at the recently published forbes billionaire list. thre are 3 indians in the top ten and several more in the top 100. they can buy what they want, u fools

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TurboSpyder - 3/9/2008 1:17:48 AMView My AgentSpace

+2 Boost

And the second richest guy on the list is Mexican which obviously proves that Mexico is a wealthy country full of wealthy people.

mini22 - 3/7/2008 11:06:31 PM

+1 Boost

All that may happen is that they buy a stake in Ferrari. Fiat will still probably own the majority stake. Tata and Fiat have a close relationship that has been forged over the past few years. In fact I understand that Fiat advised Tata in the purchase of Jaguar/LandRover from Ford.I really don't think there should be any worry here.

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farabira1 - 3/8/2008 6:42:11 AM

-2 Boost

Actually for all those people who are saying that TATA is not going to shift production and design of Jaguar and Land Rovers to INDIA, here is a news. Tata bought almost a thousand acre of land for the specific purpose of designing and engineering Land Rovers. So Clearly the engineering to most part will shift to INDIA, it seems like. But Jaguar will be sold right off. In INDIA TATA are the biggest truck and SUV builders, probably that is why they bought Land Rover, to acquire technologies like Terrain Response, that have made Land Rovers almost invincible in Off Roads, clearly Jeep And Hummers lag far behind Land Rovers in terms of Off Roading. TATA does not produce any major car in INDIA, their biggest seller is TATA SUMO, and SUV. Most of INDIAN cars are made by MARUTI, which has an affiliation with the JAPANESE SUZUKI. The new NANO is their major involvement in the car sector. TATA is like the FIAT of INDIA, produces big trucks, Lorries, and SUVs(although FIAT makes cars like Panda, Grande Punto, and 500 instead of TATAs SUVs) and is the major supplier of automobiles in INDIA. But they have not showcased any high class technology that can be compared to world class competition, but because of their high volume of sales, they have become filthy rich. Also TATA is part of TATA BIRLA group, which has many other multi billion dollar industries, ranging from Steel, Natural GAS, as well as heavy industries. So really TATA is a major player, and now they are trying to upgrade to the world arena, through integration of Land Rover technolgies into TATA brands so that their future cars or SUVs will be up to world standard.

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skinny - 3/9/2008 12:53:24 PM

+1 Boost

I swear, some of you people can't read at all....no wonder the world is going downhill.

The article says Tata wants to buy a stake in Ferrari, which basically means stock/shares in the company. and which would mean even 0.01% stake in Ferrari! How do some of you come up with the conclusion that "Tata is buying Ferrari" And that "Ferrari's will be built in India"? stupidity.

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huu76 - 3/9/2008 1:03:01 PM

0 Boost

What's with the trend of all these global sweatshop companies going around buying trophies or parts of trophies?

The West should get some balls soon and force them to have some semblance of safety and env't standards, but taking away their competitive advantage would cause these companies to collapse.

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Agent63 - 3/9/2008 1:15:39 PMView My AgentSpace

+2 Boost

Honestly who cares if they own it as long as they only play the role of parent company. As long as the pedigree, the craftsmanship, quality, and heritage remains in the Ferrari company it shouldn't be a worry at all.

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asiancars233 - 3/9/2008 2:05:12 PMView My AgentSpace

0 Boost

Keep the good stuff in Italy. Next thing you know they'll go after Lamborghini and then every other car manufacture except Buick, Kia, and Isuzu.

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StickShiftCamry - 3/9/2008 3:21:32 PM

+1 Boost

Wow Tata, the same Tata Land Rover look-a-likes I'm used to seeing being driven in Bangladesh? I used to make fun of that car...

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olscuul - 3/9/2008 6:38:54 PM

+1 Boost

i think this is a business strategy by tata to buy out other auto manufacturers and shut thgem down.
then they can start charging 4000 instead of 2500 for the nano.

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Matthew1 - 3/9/2008 9:33:25 PM

0 Boost

Yeah, I've heard some Ferrari buyers cross-shop with the Nano.

iamdabest1 - 3/9/2008 10:07:58 PM

+2 Boost

i just hope when we call jaguar, range rover and ferrari the customer serice doesnt sound like when i call DELL.

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DWolff - 3/11/2008 9:26:06 PM

+1 Boost

well, that would be another good brand ruined for me everybody knows anything built in india is a totoal piece of SH*T

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