Tata Motors today acquired the Jaguar Land Rover businesses from Ford Motor Company for a net consideration of US $2.3 billion, as announced on March 26, in an all-cash transaction. As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services.
It is been predicted that the automobile industry including Tata Motors is expected to face challenging times ahead due to unprecedented increase in input prices and continuing adverse economic situation in India and globally. Today on 2nd June, Tata Motors announced an increase in the prices of its passenger vehicles from 1 to 3%, because of increasing prices of inputs.
TATA is preparing itself for the tough time ahead. This year the Company marked with two path breaking events - the unveiling of the Tata Nano - the world’s least expensive car and the signing of the definitive agreement with Ford Motor Company for purchase of the Jaguar and Land Rover businesses.
Making itself ready for the future challenges, Tata Motors’ come up with a new plant at Pant Nagar (in Uttarakhand) for Ace and Magic range of vehicles during 2007-08, construction activity is on at Singur (in West Bengal) for the Tata Nano and at Dharwad (in Karnataka) for buses to be manufactured by the Company’s joint venture, Tata Marcopolo Motors Limited. The existing plants at Pune, Jamshedpur and Lucknow are undergoing expansion and modernization. Also TATA plans to launch a number of new products towards the end of the year, in both the ranges - passenger vehicles as well as Commercial vehicles.
Dated: 3rd June 2008
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