Tata May Get All of Jaguar and Land Rover in Ford Deal
While the details of the deal that will see Ford selling off the Jaguar and Land Rover brands to Tata Motors continue to be resolved, a new report says that Ford has no interest in keeping a stake in the luxury marques.
An unnamed industry source has reported that Ford has no intention of hanging on at the British car companies, preferring to concentrate fully on its North American operations.
Another source close to the negotiations told The Economic Times, “Ford has decided not to retain a minority stake, as it is convinced about the future development of these two brands in the hands of the Tatas
Comments
Steve
No, it's a good move. They need to focus on what they're doing, not have projects all over the globe.
Robert
I wish they would keep a minority stake, I like Tata and am sure they can do a good job, but having Ford on board seems like a very safe and good bet - at least for the near future.
Russ Bellinis
I think having Ford on board would be a big help to Tata, but it would do nothing at all for Ford. The bright spot on the whole thing is that Jaguar management screwed up so badly before Ford, that their reputation and thus resale values continue to be "in the toilet." That means that someone without a lot of money can actually aspire to owning a clean used late model Jag where any other European luxury marque is just out of the question. When the only up side to a stake in a car company is that their resale value is so low, what advantage is there for Ford? What reason is there for Ford to continue to face the financial risk? Without taking the financial risk of ownership, Ford is in a win win situation. They don't have any financial risk, but they will continue to sell engines to Jag and Rover. I think they are also continueing to sell engines to Aston Martin, so Ford makes money without the risk. They are also in a position to help out all three relatively small companies with development of future engines and transmissions if those companies chose.
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