RUMOR: Should BMW Buy Jaguar Land Rover? Some Wall Street Analysts Think So. Would You Kill Jaguar In The Process?

Some of Wall Street's sell-side analysts are doing something they never do.

Get creative.

According to the research team at Sanford C. Bernstein, there may be an opportunity out there. That would be the purchase of Jaguar Land Rover from Tata.

The purchaser? That would be BMW, which has effectively stalled its growth as of late. To give it another leg up, it's suggested it make an acquisition to grow.

It makes sense, on paper. But if you were asking us, we'd think it would be in BMW's best interest to kill Jaguar and for Land Rover's next-gen products to leverage BMW's technology.

Kind of what Mercedes is doing with Aston Martin.

What say you, Spies?

That's the message from Sanford C. Bernstein analysts, who say BMW should buy the British luxury brand from India's Tata Motors.

"BMW is overcapitalized and awash with cash. It has run into the limits of growth for its product range and brand," analysts including Max Warburton wrote in a research note Wednesday.

"JLR is severely challenged, both operationally and financially, but could massively lower both its fixed and variable costs under the wing of a bigger partner..."

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runninglogan1 - 9/19/2019 2:15:41 AM

+5 Boost

Been there done that. How'd it work out?

valhallakey - 9/19/2019 2:20:46 AM

+1 Boost

If anything BMW should try to buy Maserati and build that back into a more exclusive exotic brand like they once were. The M1 was a great car but in reality BMW cannot do exotica... they need that Italian link IMHO.

Who to buy JLR?? My thinking is that Honda or Mazda might be a good choice. Honda could dump Acura and replace the brand with Jaguar. Acura makes some pretty good cars that are just homely... give Jaguar a seat at the styling table and maybe between the two they can come up with some good looking cars. Mazda may want a premium brand and that would be an easier way to get there than doing a roll your own promo brand. Another option could be Nissan. Talk about 2 weak companies combining to make a better company, but it would need a really good leader.

PUGPROUD - 9/19/2019 5:40:24 AM

+3 Boost

Duh! Some analyst holding an underwater position recommends a short sighted transaction to get out from under losses to save his butt and BMW should listen to them. I don't think so.

Truthy - 9/19/2019 9:38:42 AM

+3 Boost

You nailed it.

valhallakey - 9/20/2019 1:51:36 AM

+3 Boost

That's funny... and probably right on!

TomM - 9/19/2019 5:42:47 AM

+6 Boost

Isn't this essentially the same question AutoSpies asked about 6 topics down on the list?

vdiv - 9/19/2019 11:58:04 AM

+1 Boost

Let's not assume 00R reads 009's posts or there is any editorial process happening here :)

MDarringer - 9/19/2019 6:51:05 PM

+2 Boost

#none

CANADIANCOMMENTS - 9/19/2019 8:39:21 AM

-1 Boost

If BMW is awash is cash and over capitalized that is a good thing. The cost of creating BEV car platforms and eventually Hydrogen platforms and technology is extremely expensive. They would not go back and purchase JLR a second time. There is a better chance of Apple buying them than BMW.

Truthy - 9/19/2019 9:49:43 AM

+2 Boost

"Some BMW executives are still emotionally scarred.." from the previous experience owning Rover Group!?!
That was the 1990s and I doubt their are many senior executives left from that period. It is not their "emotions" that were damaged, but their balance sheet. Manufacturing in the UK with the strength of the pound was problematic.
Let's see, BMW, Ford and now Tata have all tried and failed to successfully run JLR. There are too many brands now and sales are slowing globally. Manufacturers need cash on hand to get thru the next downturn and product development.
Spies, who will die first, Tesla or JLR?

SuperCarEnthusiast - 9/20/2019 11:17:29 AM

+2 Boost

Tata would loose billions if they sold off JLR since nobody in it right mind would buy it again e.g. Ford or BMW! Other car executives talk with Ford and BMW counterparts so they know the truth. LOL!