Tata takes the lead in fight for future of Halewood

Jan 4 2008 by Alistair Houghton, Liverpool Daily Post

INDIAN manufacturing giant Tata says it is “very positive” about the future of Jaguar and Land Rover after it was named front-runner in the race to buy the prestigious brands.

Ford said yesterday that it was now in detailed negotiations with Tata about the sale of Jaguar Land Rover, including the company’s Halewood plant.

The announcement followed months of speculation about the future of the brands, which were put up for sale last year as Ford fought to stem record losses.

Ford and Tata say they are confident of securing a deal but say a final settlement could be weeks away as issues including wages, terms and conditions and pensions are still up for discussion.

Trade union Unite says it will not support any deal unless the future of Jaguar Land Rover plants and their workers are secured.

Tata had been competing against fellow Indian motor manufacturer Mahindra & Mahindra and American private equity company One Equity Partners.

The Tata bid is seen by unions and industry experts as the one most likely to secure the future of Jaguar and Land Rover manufacturing in the UK. Ford’s Halewood plant employs more than 2,000 people building Jaguar X-Type and Land Rover Freelander 2 vehicles.

Lewis Booth, Ford’s executive vice-president with responsibility for Ford Europe, said: “Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar Land Rover business.

“There is still a considerable amount of work to do and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks with view to securing an agreement that is in the best interest of all parties concerned.”

A Tata Motors spokesperson said: “We are pleased by the progress in the discussions to date and very positive about the prospects of this business going forward.

Unite had already said Tata, with its manufacturing background, was its preferred bidder.

Its Merseyside-born joint general secretary Tony Woodley said: “We need further and more detailed meetings and discussions with Ford and Tata which will focus on the job security of our members in the Jaguar Land Rover and Ford plants in the UK.

“There are also crucial issues around wages, terms and conditions and pensions to address.”

Mr Woodley told the Daily Post the union would be pushing for confirmation that new vehicles would be built at Halewood.

“We want to make sure all these Jaguar Land Rover plants have got a long-term future.

“It’s a big plant at Halewood and it’s under-utilised at the moment.

“We don’t just want to hear smart talk from Tata or Ford.

“We want to hear that there are real genuine proposals for future products.”

Mr Woodley said the union also wanted confirmation on the future of other workers in the Ford supply chain whose jobs may not be transferred to Tata but are dependent on Jaguar and Land Rover.

They include the hundreds of staff at the Getrag Ford transmission plant next to Jaguar Land Rover in Halewood.

Professor Karel Williams, a motor industry specialist at Manchester Business School, said he believed Tata offered more security for Jaguar Land Rover’s UK plants than a private equity bidder.

Prof Williams said: “Tata is generally at present buying businesses for the long-term, not buying them and selling them on in three or five years.

“It does need to be said that Jaguar Land Rover still needs a sugar daddy.”

alistairhoughton