ACQUISITIONS OF

COMPANIES
W I T H S P E C I A L R E F E R E N C E T O TATA M O T O R S TA K I N G
O V E R T H E L UX URY C AR B R AN D S:
THE JAGUAR & LANDROVER.
INTRODUCTION

The TATA MOTORS: TATA motors are in fact

the most oldest & experienced car
manufactures of India. It is also one of the
biggest car manufactures of India. It has been
in the business for more than three decades, and
now due to its success it has stepped up into
international markets with its wide range of
products. Tata motors in the year 2008 entered
into world market of luxury car brands by
acquiring two major brands like JAGUAR &
LAND ROVER from FORD MOTORS.
THE JAGUARE

Founded as the Swallow Sidecar

Company in 1922, by two
motorcycle enthusiasts, Sir William
Lyons and William Walmsley. The
initial name of the company was
the SS. The Jaguar name was given
to the entire company in 1945 when
the SS was dropped due to lack of
popularity after the First world war.
Jaguar merged with the British motors corporation
(BMC), to form British motor holding (BMH) in 1966.
Financial difficulties by the company led to
nationalization in 1968 and the company hence
became merged with British Leyland, Ltd.
In the 1970s the British Leyland with the JAGUARE
acquired the ROVER cars and hence made it a part of
BL's specialist car division or Jaguar Rover Triumph
Ltd In 1984.
In 1989 due to continuous bad performance in the international
market the British Leyland decided to sell the Jaguar Land rover.
Hence came the American car manufacturing giants. The Ford
entered into the arena , and made offers to the US & UK
shareholders to buy their shares. And hence as the result in 1989
the Jaguar’s listing in the London Stock Exchange was removed
on 28th February 1990 and thus became the part of Fords new
premier automotive group.

Since Ford purchased Jaguar Land Rover in 1989 it has not

earned any amount of profit, and hence that was the reason the
Ford decided to sell the Jaguar& Land Rover in 2007.
 Jaguar Cars, Ltd.

Founded 1922
Founders SIR William Lyons
Headquarters Coventry, England

Ratan Tata (Chairman)

Key people David Smith, (CEO)
Mike O'Driscoll (MD)

Industry Automotive
Products Automobiles.
Owner's Tata motors Ltd, India
Employees 10,000
1948 MJK JAGUAR JAGUAR - S TYPE
DEW 98
The LAND ROVER

LAND ROVER is a 4x4, SUV,

vehicle
. manufacturers based in
Solihul, in West Middlelands,
England. Land Rover actually is
referred to one specific all terrain
utility vehicle which was launched in
30th April,1945 at the Amsterdam
motor show by the British Leyland.
Starting out as a model in the Rover
Company’s product range, the Land Rover
brand developed, first as a separate
company, developing a range of four-wheel
drive capable vehicles. Under a succession
of different owners, including British
Leyland, British Aerospace and BMW it
launched many of other brands, but failed to
satisfy the owners and hence In 2000, the
company was sold by BMW to the Ford
Motors Company.
The Land Rover Head Quarters in GAYDON WARWICKSHIRE , England
 Founded 1978

Founders British Leyland

Headquarter Gaydon Warwickshire,
s England
Ratan Tata, (Chairman)
David Smith,(CEO)
Key people
Phil Popham, (Managing
Director)
Industry Automotive
Products Automobiles
Employees 13,000
Parent
Tata Motors, Ltd
company
REASONS WHY FORD HAD TO SELL JLR.

The Ford bought the luxury car brands JAGUAR & Land
Rover from British Leyland in the year 1989, and made
vast amount of changes for the betterment of the sales of
its new luxury brands, but in spite of the implementations
the Jaguar & Land Rover failed to give enough profits to
the new owners.
Hence that turned to be the reason why Ford Motors
decided to sell its main luxury brands named Jaguar &
Land Rover in the year 2007.
 THE BIDDERS WHO WANTED TO ACQUIRE JLR

On 11 June 2007, Ford announced that it planned to sell Jaguar,

along with Land Rover and retained the services of Gold man
Sachs, Morgan Stanley and HSBC to advise it on the deal. The sale
was initially expected to be announced by September 2007, but was
delayed until March 2008. Private equity firms such as Alchemy
Partners of the UK, TPG Capital, Ripple wood Holdings ,Cerberus
Capital Management and One Equity Partners of the US, Tata
Motors of India and Mahindra and Mahindra (an auto manufacturer
from India) and Apollo Management all initially expressed interest
in purchasing the Jaguar & Land Rover from the Ford Motor
Company.
 THE WINNER OF THE GAME

Before the sale was announced, Anthony Bamford, chairman

of British excavators manufacturer JCB had expressed
interest in purchasing the company in August 2006, but
backed out when told the sale would also involve Land
Rover, which he did not wish to buy. On Christmas Eve of
2007, Mahindra and Mahindra backed out of the race for
both brands, citing complexities in the deal, and one by one
the companies either they quitted from the auction or lost.
On 1 January 2008, Ford made a formal announcement which declared
Tata as the preferred bidder. Tata also received endorsements from the
Transport And General Worker's Union (TGWU) as well as from Ford.
According to the rules of the auction process, this announcement will
automatically disqualify any other potential suitor.

However, Ford as well as representatives of the company would now be

able to enter into more focused and detailed discussions with Tata to
iron out issues ranging from labor concerns (job security and pensions,
technology ,IT systems and engine production and intellectual
property), as well as the final sale price On 18 March 2008,it was
reported that American bankers Citigroup and JP Morgan shall be
underwriting a loan of USD 3 billion in order to finance the deal.
On 26 March 2008, Ford announced that it had
agreed to sell its Jaguar and Land Rover
operations to Tata Motors of India, and that the
sale was expected to be completed by the end of
the second quarter of 2008.Included in the deal
were the rights to three other British brands,
Jaguar's own Daimler, as well as two dormant
brands Lanchester and Rover. On 2 June 2008,
the sale to Tata was completed at a cost of £1.7
billion.
 ADDED ADVANTAGES

The companies said there would not be any "significant

changes" to Jaguar or Land Rover employees' terms of
employment on completion of the sale.
They said that staff, trade unions and the UK government
had been kept informed of developments and supported
the move.
The purchase will give Tata the opportunity to expand its
presence in the passenger car market beyond India and
gives it the necessary initiative to compete with
international players.
CHANGES BROUGHT BY THE TATA’S TO INCREASE THE SALE
OF JLR

The Tata’s as soon as they bought the Jaguar &

Land Rover brought forward many innovative
ideas and many new models to attract the
customers worldwide . The new range of
products are far away different from the latter
products of FORD Jaguar & Land Rover,
because the major thing that differs from the
latter is the style & price.
The new Jaguar models which the Tata’s are
planning to launch in India & across the world are as
follows:

JAGUAR S- TYPE
Which is priced for about
22000 pounds( Rs 17 lakhs approximate)
The Jaguar XF The Jaguar XJ
Priced for about Priced for about
50,000 pounds 44000 to 54000 pounds
( Rs 40 lakhs approximate) (Rs35,0000 0to 44,00000
The Jaguar XK
Priced between 61000- 80000 pounds
(Rs 50,00000 to 64,00000 approximate)
NEW RANGE OF LAND ROVERS

Discover 3 priced between

44,000 to 52000 pounds
( Rs 35,00000-40,00000
approximate)
 LAND ROVER MOUNT
RIDER Priced about 50000
pounds

LAND ROVER D3 Executive

Priced about 55,000 pounds
(Rs 50,00000 approximate)
THANK YOU