TATA’S ACQUISITION

OF
JAGUAR LAND
ROVER
Tata Motors – A Brief view
• Established in 1945 as TELCO (TATA Engineering and
Locomotive Company)
• The company manufactured its first commercial vehicle
in 1954 in a collaboration with Daimler-Benz AG, which
ended in 1969.
• Tata Motors entered the passenger vehicle market in 1991
by launching the Tata Sierra, Tata Sumo in 1994, Tata
Indica in 1998.
• In 2003, TELCO becomes Tata Motors.
• In 2004, it acquired the Daewoo Commercial Vehicle
Company of South Korea.
• Tata remains India's largest heavy commercial vehicle
manufacturer.
Ford Motor Co.
• Founded by Henry Ford in 16th June, 1903 in
Michigan USA.
• In addition to the Ford, Lincon
and Mercury brands, Ford also owns Volvo
Cars of Sweden, and a small stake in Mazda of
Japan and Aston Martin of England.
• World’s Third Largest automaker. 
 Reasons For Acquisition
• Ford purchased Jaguar in 1989 in a bidding
war with General Motors paying 2.5billion.
• Land Rover was sold by BMW to Ford Motor
Company for 2.7billion dollars in 2000.
• Jaguar sales in the U.S. were down by 25.7%
in May 2007. Land Rover sales were down by
1.8%.
• Jaguar sales dropped 33% in the US and
Europe in the first two months of 2008
Cont.
• Land Rover sales fell 13% in the US and
around 7.7% in Europe during the same
period.
• Ford had lost 15.3 billion dollars over the past
two years.
• Ford is getting less than half what it paid for
the two brands
The Deal
• 12/06/2007- Announcement from Ford that it
plans to sell Land Rover and Jaguar.
• August 2007 - Major bidders are identified.
• Likely buyers: Tata Motors, Mahindra
&Mahindra, Ceribrus capital Management,
TPG Capital, Apollo Management.
Cont.
• India’s Tata Motors and M&M arrive as top
bidders ($ 2.05b & $ 1.9b)
• 03/01/2008 – Ford announces Tata’s as the
preferred bidders.
• 26/03/2008 - Ford agreed to sell their Jaguar
Land Rover operations to Tata Motors.
• 02/06/2008 – The acquisition is complete. Tata
pays $2.3 billion.
• Ford contributes $600 million to JLR Pension
Plan.
SWOT Analysis
Recent Development
• Land Rover, which accounts for over three-fourth
sales in volume terms, saw a 32 per cent jump in
sales, Jaguar registered 11.5 per cent volume
growth.
• JLR accounts for nearly 60% of Tata Motors’
consolidated net sales. In the December quarter
JLR reported a net profit of £55 million (around
Rs 378 crore) and augmented Tata Motors’
standalone net profit by nearly 100%. 
• Tata Motors’ consolidated net profit was Rs 650
crore in the December quarter, as compared to Rs
22 crore in the September quarter