Is the Tata Deal right around the bend?
Here’s more news on a hotly anticipated deal for India Inc. The Indian company Tata Motors has been in the process of acquiring the luxury brands Jaguar and Land Rover, from Ford Motor Co. The deal may be nearing a successful conclusion and the date of the buy over announcement is rumoured to be the 5th or 6th of March.
This news comes closely on the heels of the announcement by officials at Unite, UK’s Trade Union, that they have ascertained that Tata has agreed to meet the clauses and requirements stipulated by the trade union. Tata Motors have agreed to keep production and component sourcing in the UK after the buy over. This makes sure that the trade union’s concerns about employment, job retention and production are assuaged. Most of the engines, stampings and other systems for Jaguar and Land Rover are produced at the Ford plants in Bringend in Wales and Dagenham, near London.
This however means that the Tatas cannot take advantage of the possibilities of lower cost production of parts in India to result in higher profits and a financial turn around for Jaguar and Land Rover.
In the meanwhile, Ford have not officially committed to a date as yet but have ruled out the announcement of the take over on the 4th of March at the press gathering for the Geneva Motor show. Ford plans to launch a new version of the Ford Fiesta on this day and will probably not want the launch to be overshadowed by any other news. However, they are certain that the announcement is to be made soon and that the 5th or 6th of March are not too far off the track.
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