Jaguar to be ’spun off immediately’ after Tata purchace

omarrana submitted on 02/20/2008 Official AutoSpies Timestamp: 10:16 AM
from: www.egmcartech.com

[34] user comments | category: Spy Shots

Tags: Jaguar

Jaguar

So you’re probably wondering when will this Ford, Tata, Jaguar and Land Rover deal actually be completed. Well here is the recent twist in the much talked about American, British and Indian story. Indian sources have told Inside Line that after Ford settles its sale of Jaguar and Land Rover with Tata Motors, look for Jaguar to be quickly spun off.

Tata Motors, who has been the top preferred buyer of the two British brands, said that it hopes to buy the luxury brands from Ford in the forthcoming weeks.

A source, who wished to remain anonymous... Read Article

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JRobUSC - 2/20/2008 11:24:50 AM

+3 Boost

so Jaguar will be back on the trading block, and Tata is going to start building Land Rovers in India. Hmm.

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Whelan - 2/20/2008 11:44:17 AM

+8 Boost

LMFAO, Could Ford "F" up anymore at this point. Oooh look we build an SUV, ooooh look we built another truck.

Uh-oh, we are still losing money on sedans and small cars, oh well give the US a cheap redo of the current Focus, dumb down the Mondeo in Europe and call it the Fusion, but offer AWD as a concession for such a crap product.

Oh boss, boss, I got a great idea. Let's revamp the entire Jag line and get all these greta new cars like the XKR and XF and then when they are about to be released and make money, we can sell them off!

Brilliant! Let's sell Land Rover as well, since they just came off of consecutively profitable years. Who knows, maybe we can offload Volvo soon too.

My god this company is just begging, clawing, and trying everything possible to go out of business at this point.

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mini22 - 2/20/2008 11:49:06 AM

+5 Boost

So anotherwords Land Rover is going to be an all Indian built car.If I was ever in the market for one I'm not now for sure.LR build quality was not great before. I can just imagine what it will be like now.As for Jaguar-Perhaps that's a good thing that their being sold off again.Someone will get them at a song and perhaps can make money on them now with the new XF.

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EL34 - 2/20/2008 11:56:44 AM

0 Boost

I noticied no Japanese company bought Jag or Land Rover.

hmmmm.

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M35MT - 2/20/2008 12:16:55 PMView My AgentSpace

+4 Boost

Nor did BMW, which has cash to spare.

TauronB2G - 2/20/2008 12:34:13 PM

+2 Boost

BMW sold Rover to ford in the first place. They developed the Range Rover and then sold them. Kind of like what Ford is doing with Jaguar.
All in all I think its a bad idea. WHy sell Jaguar now and then turn around and have them sold again. Makes no sense. Tata can't possibly make any money off of Jaguar. How on earth Can Tata build Rovers? Already poor build quality is gonna get worse.
T

Hantra - 2/20/2008 12:54:17 PMView My AgentSpace

+6 Boost

"BMW sold Rover to ford in the first place."

I wouldn't say 'sold' exactly. They gave it to them after a $4 Billion bath.

M35MT - 2/20/2008 12:21:02 PMView My AgentSpace

0 Boost

I'm going to cry. Seriously, LR build quality sucks as it is, now India?? So now instead of new car smell we get the smell of...nevermind.

Whatever, the current RR is timeless, I would be happy buying one and keeping it as long as I can.

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mini22 - 2/20/2008 12:26:06 PM

+4 Boost

The point is that someone can get Jaguar for next to nothing and turn around and make money on it now.It will be interesting to see who buys it.

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EnnNorak - 2/20/2008 11:22:33 PM

+1 Boost

What I would like to know is who is buying the product while all this corporate crap is going on? Would it be legal for Mercedes and BMW to chip in to buy Jaguar and simply let it die?

no1listensanyway - 2/20/2008 12:28:11 PMView My AgentSpace

+1 Boost

hmmm, I do not like the sound of this.

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cdoke - 2/20/2008 12:38:44 PMView My AgentSpace

+3 Boost

The words "spun off almost immediatly" suggests to me that they may already know where the company is going. While we have been focusing only on the Tata-Ford negtiations it may very well be that there have been other talks going on. Although, I am not enitrely sure that is correct based on the fact that there have been no rumblings of such.

Anyway, if they have been in said negotiations, I have three hypotheses as to where the company will go. I'm going to keep them to myself for now.

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1995e34 - 2/20/2008 1:48:56 PM

+1 Boost

what nations do the three hypothesis hail from?

cdoke - 2/20/2008 5:48:30 PMView My AgentSpace

+2 Boost

Fine, I'll just come out and say it. It strikes me that if the buyer is known then it most be someone close to the companies in some way, as he have not heard about it.

1. Fiat. Non-ideal- Fiat would undoubtedly interfere in the product plans of Jaguar due to overlap issues. Fiat has said that they are not interested in Jaguar's technology.

2. Jaguar itself- were this the case, the odds of others knowing of the transaction before-hand drops significantly. How feasible it is would be another matter altogether.

3. Sir Anthony Bamford- To my knowledge he is the ONLY person to attempt to purchase Jaguar by itself. His father also knew Sir William Lyons.

1995e34 - 2/20/2008 9:48:00 PM

+2 Boost

Bamford sounds the most likely.

mini22 - 2/20/2008 1:30:45 PM

+1 Boost

My guess is that it's Fiat. My reasoning is that
CEO Marchionne has already mentioned interest in Jaguar's platforms for Alfa Romeo. Also Fiat and Tata have joint operations in India,and supposedly Fiat help Tata in negotiations to buy Jaguar/Landrover from Ford.My guess is that Fiat could get Jaguar at a smokin deal from Tata.I also believe that the unions already know who the buyer is and the spinoff has already been arranged.

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S4cabriofoxone - 2/20/2008 5:14:13 PMView My AgentSpace

0 Boost

And can you imagine a Maserati Quattroporte with the XJ's aluminum spaceframe?

mini22 - 2/20/2008 1:38:49 PM

+1 Boost

Also if you recall Fiat thought about buying Jaguar/LandRover last yr but did not feel they were in the financial position to buy them at that time.Things have changed.Fiat is now making money.Also you're only talking about Jaguar now. Jaguar also has established dealers in the US giving Fiat additional outlets to market Alfa Romeo. Another point the unions who are involved with Jaguar much prefer a car maker to take over Jaguar rather then a financial equity firm.

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SteedPub - 2/20/2008 2:12:21 PM

+2 Boost

At some point China will pounce on some of these ailing brands. MG has already been eaten by the Dragon. I see Jaguar as a natural buy for one of the state owned entities. They can get a good deal on it and even if they have limited success in the 1st world, they can build them at home and sell plenty of them to their own markets.

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SteedPub - 2/20/2008 2:13:36 PM

-1 Boost

In any case I am hoping that the sale of Jaguar / Land Rover and the cash infusion it brings will boost my Ford stock so I can sell it pretty.

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S4cabriofoxone - 2/20/2008 5:14:46 PMView My AgentSpace

+3 Boost

I don't really know what to make of this. I hope Jaguar ends up in good hands.

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urbansouljah - 2/20/2008 6:35:04 PM

+1 Boost

bunch of bull. Tata has already said they plan to keep the companies in the UK. They are known for keeping management in place and keeping production where it is.

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S4cabriofoxone - 2/21/2008 12:07:34 AMView My AgentSpace

+3 Boost

Red-headed stepchild?

Officially, the only POS in their lineup is the X-Type. The XF and XK have come in to save the day. They are both beautiful, with fantastic handling, posh interiors and good prices. The XJ has been revitalized and will be redesigned soon. What else is there?

Like you said, all they need is money to continue with this product renaissance.

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NItePhire - 2/20/2008 9:21:40 PM

0 Boost

Ok here is something out of the blue. Maybe Hyundai will by them instead of creating their own luxury brand. They are looking to do that anyway, so why not. They can get Jag for about 1 billion dollars, and they to have the money..
Think about it?

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komododave - 2/20/2008 10:29:27 PM

-1 Boost

Is the new car curry smell extra?

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JWalkerLegrande - 2/21/2008 9:47:56 AM

+1 Boost

Jaguar will buy themselves out, the only way to go.

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teuton - 2/21/2008 9:59:39 AM

0 Boost

I think its just a knee-jerk and a jingoistic approach by Tata to buy LR and Jag. Remember the Chinese going for the Rover? Now the Indians or at least TATA wants to prove that it isnt far behind clinching deals with MNCs. Well, as for LR and Jag, they are dying a slow death, now thanks to TATA. I dare add rather on a sad note... we can write both these companies off for good

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mini22 - 2/21/2008 6:02:25 PM

0 Boost

I'm still leaning towards Fiat. Hyundai has already developed a RWD car with their own V8.Alfa is in need of a RWD chassis that is not a costly as Maserati is.Tata has expressed it's love of Land Rover. However Tata's stock has declined 11% since it announced it's intention to buy the package from Ford. There is an uneasy feeling that Land Rover and Jaguar are a poor fit in philosophy with Tata's ultra low cost simple cars. Another concern is the money to fund both and the cost to Tata if Jaguar fails(it could be as much as 5 billion to shut Jaguar down).Therefore this could be the main reason why Tata would unload Jaguar the minute it closes the deal with Ford. I would think they would unload it (wild guess) for around 1 Billion. That makes it more affordable for smaller companies to buy it. Jaguar does have potential with the right styling and product mix.The X type will go away which makes perfect sense. If they do a coupe,sportscar,4 door coupe etc. along with the new XF and upcoming XJ with the right styling they would have a shot at making it.

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MadibaP - 2/22/2008 8:59:05 AM

+1 Boost

Yes you may as well just flush Land Rover down the toilet. What is the point of this deal?

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drsk77 - 2/27/2008 9:05:05 AM

+1 Boost

I am from India. And 1 thing I can say that .. if Tata has promised the Union that they will not off-load Jaguar (a news link pasted below), they will not.

http://www.motorauthority.com/news/industry/unions-tata-will-not-sell-jaguar/

Tata management is known to keep its promises.

Regarding the quality of Jaguar-Land Rover after Tata takes over ... time will answer this question.

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