Ford set to name Tata as next Jaguar, Land Rover owner

This is one of those things I am not certain about. I thought it was a mistake when Ford bought Jaguar, and a huge mistake when they purchased Land Rover. But Ford has invested a lot of money and effort into fixing these two brands and I have definitely seen improvement, particularly in Land Rover. I have to wonder if Ford isn't panicking and selling these brands too soon. On the other hand, the list of companies that have not been able to make money with Jaguar is pretty long. And even BMW couldn't make a go of Land Rover. I wonder why the Indians think they can?

I do think the association with Ford devalued the Jaguar brand in the eyes of some buyers, but will an Indian owned Jaguar appear better?

Ed

Arn't there any BRITS who could buy them? How about Richard Branson, he's got the bucks and if anyone can make a go of Jaguar and Land Rover he should.

Jeff DeWitt

I think Ford actually wants cash, not vague promises or junk bonds. Branson plays a rich guy on TV, but I am not sure he could come up with the Billions in cash Ford is asking for. Branson's cash flow allows him to appear rich, but what do you suppose would happen if all his creditors decided to call in their loans? The only way Branson could buy something like Jaguar from Ford would be to get together a capital investment group. Ford's former CEO, Nasser is making such a bid, but Ford isn't interested because they aren't able to pay in cash. They want to give Ford a bunch of junk bonds - which Ford doesn't need. I wish there was some way Nasser could come up with Jaguar (and Land Rover). I'd love to see him try to make money running Jaguar. After all, he is the nitwit that saddled Ford with it in the first place. Before Nasser starting making the calls, Ford was planning to launch upscale models in Europe under the Lincoln brand. Nasser tried to buy names instead, and all it did was cost money. Even Volvo has not paid any dividends directly, although at least Ford has been able to take advantage of some of the Volvo design talent.

I still wonder why the Indians think they can succeed where so many others have failed. I am guessing that eventually they think they can sell Jaguars and Land Rovers in India in large numbers because of the "names." So for them at least, there may be a marketing advantage worth the cost.

Ed

If they redesign the Land Rover as a real off-road SUV instead of a rich man's toy ( the way that most of the Jeep lineup has gotten) they will probably be able to sell quite a lot of them in developing countries. I would guess that they aren't expecting to make money with Jag - but probably had to take it on condition of getting Land Rover.

Ted

You mean more like

But the Indians also have a British way of thinking. They were a colony of Britain for about 150 years after the US was. Maybe a modified British way of doing things will work out for them. (Of course, the fully British way didn't work for Jag or Land Rover before.)

Jeff

Exactly my point. How many people in developing countries can afford to drop that kind of money into a vehicle that is going to be driven around off road? Clearly it's positioned right now at foreign oil companies, well financed National Geographic expeditions, etc.

Ted

I bet they'll come to the USA smelling like curry.