Tata acquisition of…

Jaguar and Land Rover

Rohit Vishwakarma

Introduction

• Location: Mumbai, India (HQ)

• Founded: J R D Tata in 1945

• Competitors: Maruti, M&M, Ashok Leyland

• Brand names: NANO, Starbus

• CEO: Ratan Tata

• Location: Dearborn, Michigan

• Founded: 1903 by Henry Ford

• Competitors: General Motors, Toyota

• Brand names: Volvo, Mazda, Jaguar and Land Rover

• CEO: Alan Mulally

Ups and downs in Jaguar

Ups and downs in Land Rover

India’s Tata Motors and M&M arrive as top bidders

($ 2.05b & $ 1.91b)

The Deal Process

Why Ford wanted to sell ?

• Jaguar has not making any profit for ford, so they start calling jaguar as dog.

• Even though LR made 18% profit, nevertheless it is not what ford wanted.

• Challenge - Bringing down production costs and turning around the company successfully.

• Ford made the heaviest loss in 2006 i.e. $12.6 billion in its 103-year history.

Is TATA on the right track… or ?

• Opportunity to participate in two fast growing auto segments.

• Increased business diversity.• Land rover provides a best option for

Tata Motors Ltd’s SUV segment.• Tata can broaden the brand portfolio

by Jaguar, that offers a range of Luxury cars.

• Benefits from component sourcing.

Result

• Jaguar Land Rover posts £60m profit - Land Rover sales were up 34% quarter-on-quarter, with Jaguar volumes up 11.5% after strong demand for its XF model.

• Tata Motors reports net profit of Rs 400.14 crores in the December 2009 quarter.

Thank You.. !!