Comment: A bold step for Indian car firm

Mar 27 2008 Liverpool Daily Post

SO THE makers of the world’s cheapest car now own one of the most famous luxury marques on the road. Tata, the Indian firm that has brought us the £1,300 Tata Nano car, has sealed a £1bn deal with Ford for the sale of Land Rover and Jaguar.

The agreement, although long expected and much discussed, will no doubt be the subject of hand-wringing and clever quips among so-called petrolhead television presenters.

But to bemoan sale of these two brands to a lesser-known name (at least as far as the Western motor industry is concerned) is to lose sight of a fundamental truth: realistically, just how many credible buyers were there for Jaguar?

This is a brand synonymous with luxury and prestige, yet it has not flourished in recent years.

Now Tata is prepared to invest in, develop and protect the Jaguar name – the company has made clear it is not about to move production to India – and we should all wish them well in this endeavour.

It is heartening to read the congratulations of India’s commerce and industry, who lauded the Tata family for flying the flag for the sub-continent’s private sector. And it is wonderful news that, not only are the workers in the Halewood factory able to feel their jobs are now safe, but colleagues in the nearby transmission plant have also been given assurances for their future.

Jaguar has been making losses for years now, and Ford had struggled to turn that trend around.

For a some time now, the Jaguar name has been burdened with Mondeo comparisons – something BMW and Mercedes have never had to contend with in trying to market their de luxe models.

Meanwhile, Land Rover is thriving and sales are on the up – particularly in the Freelander market.

Tata has come in and snared a tasty morsel in Land Rover; for the good of the British motor industry, we should wish them well and hope they have not bitten off more than they can chew in acquiring the Big Cat as well.