Comment: Staff must rely on Tata pledges

Mar 18 2008 Liverpool Daily Post

THE future of Jaguar and Land Rover now looks as though it will lie in the hands of Tata. The Indian motor giant is expected to agree a deal, believed to be worth £1bn, for the two famous British marques with Ford on March 26.

If the agreement takes place, it will be the end of a protracted period of speculation as to where Jaguar and Land Rover’s ownership would eventually lie.

Tata was always the front-runner in the race to acquire these prestige names – back in January, Ford admitted the Indian company was its preferred bidder.

So the question of ownership has been answered. The more pressing question is this: How will it affect more than 2,000 people who work at Halewood building Jaguar X-Type cars and Land Rover Freelanders?

Tata is a vast organisation – the largest private company in India with interests in steel, automobiles, information technology, communication, power, tea and hotels.

Tata chairman Ratan Tata said earlier this month that he wanted to keep production in Britain and the agreement is expected to confirm Jaguar Land Rover's investment plans for its UK plants for the next five years.

So it would seem workers can breathe more easily now; the ownership issue appears resolved, and Tata has stated its commitments.

In addition, the chairman of Bentley Motors recently claimed it was a boom time for the luxury car market.

However, it is impossible to feel entirely easy about this deal.

For, Tata assurances and Bentley proclamations aside, the industry is not enjoying a smooth ride.

The constant rise in commodity prices, coupled with the uncertainties of the credit crunch, currency troughs and peaks and environmental controls make for uncertain times. No one in the car manufacturing business can, in reality, say how their industry will be faring in five years time.

Hopefully, for Jaguar and Land Rover workers, Ratan Tata’s promises will not prove to ultimately have a hollow ring.