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  • What Led To FORD Selling Off JLR?

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    Nitish Mishra
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    Ford bought Jaguar and Land Rover in the late 1980s and 2000 but as luxury car sales declined in the 1990s amid tougher market conditions, these brands struggled. Ford later established a luxury division called Premier Automotive Group (PAG) that included Jaguar, Aston Martin, and Lincoln, but dismantled PAG in 2006 and sold Aston Martin. With Jaguar Land Rover (JLR) next in line, Ford sought to sell JLR. The sale of JLR to Tata provided benefits like expanding Tata's global market share beyond India, diversifying its brand portfolio, gaining access to JLR's latest technologies, and obtaining competitive steel supply costs through Tata's existing deal with Corus

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    Ford bought Jaguar and Land Rover in the late 1980s and 2000 but as luxury car sales declined in the 1990s amid tougher market conditions, these brands struggled. Ford later established a luxury division called Premier Automotive Group (PAG) that included Jaguar, Aston Martin, and Lincoln, but dismantled PAG in 2006 and sold Aston Martin. With Jaguar Land Rover (JLR) next in line, Ford sought to sell JLR. The sale of JLR to Tata provided benefits like expanding Tata's global market share beyond India, diversifying its brand portfolio, gaining access to JLR's latest technologies, and obtaining competitive steel supply costs through Tata's existing deal with Corus

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    11 views1 page

    What Led To FORD Selling Off JLR?

    Uploaded by

    Nitish Mishra
    Ford bought Jaguar and Land Rover in the late 1980s and 2000 but as luxury car sales declined in the 1990s amid tougher market conditions, these brands struggled. Ford later established a luxury division called Premier Automotive Group (PAG) that included Jaguar, Aston Martin, and Lincoln, but dismantled PAG in 2006 and sold Aston Martin. With Jaguar Land Rover (JLR) next in line, Ford sought to sell JLR. The sale of JLR to Tata provided benefits like expanding Tata's global market share beyond India, diversifying its brand portfolio, gaining access to JLR's latest technologies, and obtaining competitive steel supply costs through Tata's existing deal with Corus

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    © All Rights Reserved
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    What led to FORD selling off JLR?

    Ford bought Jaguar from British Leyland Ltd. in 1989 for USD 2.5 billion and Land Rover for
    USD 2.7 billion in May 2000. As market conditions toughened in the 90s and people stopped
    buying luxury cars, they went through a rough phase. However, in 1999, Ford established a
    PAG (Premier Automotive Group) which included Jaguar, Aston Martin and Lincoln. Volvo
    soon entered this PAG. But they had to dismantle the PAG in 2006 and sell Aston Martin for
    USD 931 million. JLR was next in the line and they showed all their intentions to put JLR on
    the market.

    Benefits to TATA
    1. Less dependency on the Indian Market and an increased share in the Global Market.
    2. Their range diversifying from India’s cheapest car to luxury brands.
    3. Access to latest technology which came along with JLR.
    4. Cost Competitive Advantage as Corus supplied steel to JLR as TATA had already clocked a
    deal with them.

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