Tata to seal Jaguar, Land Rover deal on Wednesday
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After months of fevered speculation and several postponements, Tata Motors, India, is finally set to become the new owners of two of the world's best-known luxury car models, Jaguar and Land Rover, on Wednesday."We have been told that the Memorandum of Understanding (MoU) will be signed on Wednesday,” said, Andrew Dodgson of the influential workers' union 'Unite', which represents Ford workers. According toDodgson
After months of fevered speculation and several postponements, Tata Motors, India, is finally set to become the new owners of two of the world's best-known luxury car models, Jaguar and Land Rover, on Wednesday."We have been told that the Memorandum of Understanding (MoU) will be signed on Wednesday,” said, Andrew Dodgson of the influential workers' union 'Unite', which represents Ford workers. According toDodgson, Tata is said to have assured 'Unite' that it will keep all three of Jaguar and Land Rover's British plants and source the supply of engines and transmission from Britain. While 'Unite' represents some 12,000 Ford workers, Dodgson said that the total number of jobs at stake could be anywhere between 35,000 and 40,000 when ancillaries are taken into account. On its part, Tata Group chairman, Ratan Tata, scotching all rumours of outsourcing, said that he has no plans to 'Indianise' Jaguar and Land Rover. "The practice of moulding an acquired company to look and function more like its new parent is a "more Anglo-Saxon" phenomenon, with an expectation that if you're acquired, you will look like the owner." Tata said. Expressing optimism over the Tata takeover, Ian Callum, the director of design, responsible for the new Jaguar XF and XK model, said, “We have shown Tata our new model lines and the planned product cycle. The two national cultures appear to fit together very well and Tata is being very respectful about what we are doing”. Tata whose offer is said to be in the region of $2 bn was named by Ford as the preferred bidders after it beat off competition from fellow Indian competitor Mahindra and Mahindra and an American buy-up specialist One Equity. Ford acquired Jaguar for $2.5 bn in 1989 and Land Rover for $2.75 bn in 2000 but put them on the market last year after posting losses of $12.6 bn in 2006 - the heaviest in its 103-year history. (IANS)
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