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High end consumers in Europe and America plan to dump Jaguar – Land Rovers – Tatas may have made the worst investment in pursuit of feeling at par with Ford and GM
Tina Shekharan
Mar. 27, 2008

The purchase price is less than half what Ford paid ($2.5 billion each) to acquire the two brands. On the surface Tatas got a great deal. But it comes with huge pension burden which the Indian industrialist group feels they can eventually get rid of through court actions and delay tactics typical in India. However, it can turn out to be worse deal that the recent steel deal as high end consumers and dealers plan to dump Land Rover and Jaguar.

Overnight Land Rover and Jaguar took the status below Hyundai, some think tanks believe. For the same reason Volvo is not desirable either because only God knows where Ford will dump this one.

High-end automobiles are about prestige. Tatas are well known in India. But in the west an Indian auto company who just announced a car worth less than $2500 is not prestigious. As a matter of fact Land Rover and Jaguar may not even sell in US and Europe as dealers will refuse to carry the brands due to lack of customers.

Tata Motors signed the deal to buy luxury brands Jaguar and Land Rover (JLR) from Ford Motor for $2.3 billion in cash, the largest acquisition by an Indian company in the automobile business. It is also the worst and business foolish acquisition ever.


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