|
|
|
Ramnath S, auto analyst, SSKI Securities said, "They (Tata Motors) are in a better position, given their size and the backing of the group."3
He further added, "It makes better strategic sense for Tata, and (Chairman) Ratan Tata has an obvious passion for these marquee brands."4
Some industry observers noted that Tata Motors would face a challenge if was successful in acquiring these premium brands.
|
Jaguar and Land Rover have high production costs and require high engineering and research capabilities as they had to compete with other well-known luxury brands like BMW and Audi. An analyst said, "Taking over the brand is easy, bringing down production costs and turning around the company successfully, will be the challenge."5
Some even wondered why Tata Motors had to acquire foreign luxury brands when it had plans to invest more than Rs. 120 billion in its own ambitious expansion programs for small cars, Sports Utility Vehicles (SUVs), and trucks.
Additional Readings and References:
1. "Tata, M&M Eye Jaguar, Landrover," www.autoindiatimes.com. July 19, 2007.
2. "Tatas Plan to Acquire Land Rover and Jaguar," www.timesofindia.indiatimes.com, July 19, 2007.
3. Nandini Sen Gupta and Lijee Philip, "Tata, M&M May Bid for Jaguar & Land Rover," www.economictimes.indiatimes.com, July 19, 2007.
4. "Ford Confirms Bids for Jaguar, Land Rover," www.business-standard.com, July 20, 2007.
5. "Ford Gets Bids for Jaguar," www.timesofindia.indiatimes.com, Rover, July 20, 2007.
6. "Tata Motors Bids for Ford's Jaguar & Land Rover," www.indiapost.com, July 23, 2007.
7. "India's Tata, Mahindra May Bid for Jaguar," Rover, www.reuters.com, July 26, 2007.
Cases on related topics:
1. The Acquisition Bid for UFJ Holdings
2. Tata Motors: Serving an 'Ace' for Success
3. Tata Motors' Acquisition of Daewoo Commercial Vehicles
|
|
3] "India's Tata, Mahindra May Bid for Jaguar," Rover, www.reuters.com, July 26, 2007.
4] "India's Tata, Mahindra May Bid for Jaguar," Rover, www.reuters.com, July 26, 2007.
5] Nandini Sen Gupta and Lijee Philip, "Tata, M&M May Bid for Jaguar & Land Rover," www.economictimes.indiatimes.com, July 19, 2007.
|
