Car firms welcome Tata takeover

[TheStig]

Motor component firms have welcomed the takeover of Jaguar and Land Rover by Indian firm Tata.

Tata, India's biggest vehicle maker, is paying £1.15bn ($2.3bn) for the brands after months of negotiations with Ford.

John White of I.M Kelly Automotive which has 80 Coventry workers, said he was happy because Tata "was successful with every single thing that they do".

Coventry City Council, union leaders and business chiefs across the Midlands have also endorsed the deal.

Jaguar and Land Rover employ about 16,000 staff at UK plants in the West Midlands and Merseyside.

Mr White is sales and marketing director of I.M Kelly, which makes interior trims and finishings for Jaguar and Land Rover. He said both luxury marques were doing well.

"So they (Tata) have picked up this business at a very, very, fortunate time," he said.

"I am sure this is all in their plans. Both companies are on the up and long may that continue."

'Good feeling'

Geoff Bayton, one of the directors of B-squared, a motor component firm with about 20 staff in Coventry, said the move had inspired confidence.

"At the start we were a little bit worried obviously with hearing different consortiums that were looking to get involved," he said.

"As it's come out now with Tata this gives us a good feeling and I think the rest of our workforces are feeling quite happy this has happened because it gives them a lot of confidence."

The negotiations with Tata started last June when Ford announced its intention to sell the companies as a package.

Ford sold the two companies, based at Solihull and Castle Bromwich in the West Midlands and Halewood on Merseyside, in order to concentrate on its loss-making core US car business, which it hopes to turn around in the next two years.


http://news.bbc.co.uk/2/hi/uk_news/england/coventry_warwickshire/7316121.stm


I just hope they keep the Jaguar Logo:

TheStig

[cosworth151]

Further sad proof that putting someone who knows NOTHING about cars (former Boeing chief Alan Mulally) in charge of an auto company (Ford) is a really, really bad idea.

[TheStig]

I agree cosworth,to look on the bright side ,you will get a free curry for 6 months when you buy a Jaguar....Depending on the model.

TheStig

[Wizzo]

I find it amazing that a company like Tata can afford to buy Jaguar and Land rover. When is the last time you see a Tata on the road?

Oh yes, thats right, India are actually loyal to their own car industry and don't let their country get flooded with foreigns makes. Perhaps we would still have the likes of Triumph, Rover and now Jaguar and Land rover (to name but a few) if we had the same Government concern. 

[raindancer]

Hi Wiz,

Tata's are a big name as an Industrial Group and group revenues are in the region of over $ 50B. So they obviously have the cash.
Coming to cars almost everyone worth their salt are there in India. All the japs, most of the european ones including, Mercedes, BMW, AUDI, Volkswagon, Skoda, Volvo and Ford, GM, Renault, Toyota, Honda, Suzuki, Mitsibishi, Hyundai along with Indian Brands.

[Wizzo]

Thanks for the info Raindancer. Obviously the likes of Mercedes, BMW, AUDI, Volkswagon, Skoda, Volvo and Ford, GM, Renault, Toyota, Honda, Suzuki, Mitsibishi, Hyundai are in virtually every country, my point was how India have insured the future of their own car industry before allowing in any effective competition.

India began manufacturing cars in 1940 but it didn't allow competition from foreign companies until 1995! Imagine where the UK car industry would be if it had such an advantage. Even after 1995 the importing of foreign made cars (new & used) is heavily restricted and attracts very high import duties (as much as 60%).

The growth rate between 1998-2008 of passenger car manufacturing in India is - wait for it 98%!!

My point was that Tata are a massive company, but nobody in the UK would normally purchase one, however, with the shrewd purchase of Jaguar & Land rover (for approximately half of their true value) you will now effectively see a Tata manufactured car on every mile of every UK road.

The UK have some (if not all) of the most respected motoring brands in the world - its just a shame we don't own any of them anymore.   

 

[TheStig]

Remember Wizard we had Unions over here!....That is what really killed the Motor Car Industry here.

TheStig

[Dare]

Stig,one thing that hurt American auto makers in
the 80's was that the Japs made a better and more
dependable car.

Another thing with Toyota's being made in Kentucky now
people don't feel as if their buying a foreign car

[TheStig]

Is it not the case dare,that all the names have gone, and are vanishing. All we have to choose from is foreign cars.

TheStig

[Dare]

Is it not the case dare,that all the names have gone, and are vanishing. All we have to choose from is foreign cars.

TheStig

All the great English cars I remember from my early
years are gone.Jag XKE,Triumph Spitfire  and TR4,
MGA's,Autins,we never had the Coopers over here
not because I wouldn't have liked them too

[TheStig]

dare,thanks for the post.I could go on in great detail as to the demise of the car industry here.I just hate typing!

TheStig

[cosworth151]

A big problem here in the States is the lack of heath care. The cost of health car adds over $1500 per car at GM, Ford and Mopar. They are required to provide health care for their many retirees.

[raindancer]

I think its the Health Care insurance which is the killer and it has all but killed manufacturing in the U.S.

[raindancer]

Thanks for the info Raindancer. Obviously the likes of Mercedes, BMW, AUDI, Volkswagon, Skoda, Volvo and Ford, GM, Renault, Toyota, Honda, Suzuki, Mitsibishi, Hyundai are in virtually every country, my point was how India have insured the future of their own car industry before allowing in any effective competition.

India began manufacturing cars in 1940 but it didn't allow competition from foreign companies until 1995! Imagine where the UK car industry would be if it had such an advantage. Even after 1995 the importing of foreign made cars (new & used) is heavily restricted and attracts very high import duties (as much as 60%).

The growth rate between 1998-2008 of passenger car manufacturing in India is - wait for it 98%!!

My point was that Tata are a massive company, but nobody in the UK would normally purchase one, however, with the shrewd purchase of Jaguar & Land rover (for approximately half of their true value) you will now effectively see a Tata manufactured car on every mile of every UK road.

The UK have some (if not all) of the most respected motoring brands in the world - its just a shame we don't own any of them anymore.   

 

I agree WIZ and the Indian economy was growing at 3 or 4% till than. The misguided concept of a mixed economy where large enterprises had to be from the Public Sector and you needed various licenses even to set up a business ensured that competition was not encouraged. I am 40 years today and in a way straddled both the economies. For instance when I was 16 or so you had to pay 100% of the cost of a two wheeler or a car and wait over 4 years to be allotted a vehicle.
To a situation where companies come and compete with each other, pay you money to buy their vehicle and actually finance it.
But it is really sad to see some of best brands and the heritage of the British Automobile Industry being diluted due to Market dynamics.