Talking About Automobiles

Wednesday, February 6, 2008

Tata Motors Owns Jaguar, Almost


We know that Ford is struggling as of today. The automaker has placed a lot of confidence on its large vehicles. SUVs and light trucks have been racking up sales for American automakers. But that was when the price of petroleum is still low and the United States' economy is still on the rise.

But today, the economy is slumping and the price of petroleum fuel is skyrocketing. This meant trouble for American automakers like Ford. The Dearborn automaker though has taken steps to battle this decline in sales of their large vehicles.

The automaker is now focusing on their core business which means they are shipping out their luxury marques such as Aston Martin which was sold early last year. After Aston martin was sold, Ford is now looking to sell its two British luxury marques in the form of Jaguar and Land Rover.

The two British luxury brands have been performing at s subpar level as few consumers in the United States of course are interested in purchasing expensive vehicles which eat up a lot of gasoline. And it seems that an Indian automaker is set to purchase the two prestigious British brands.

The said Indian automaker is Tata Motors. You might have heard of the name as the company has unveiled last month what would be the world's least expensive vehicle. If the Indian automaker succeeds in acquiring both luxury brands, it would really be a good boost for the company.

One advantage that they can get from acquiring the two luxury brands is that they would have a wide retail network where Tata Motors can easily market their own vehicles. Another advantage they may have is the technological prowess which Jaguar and land river represents. Tata Motors will be able to use those technologies on their vehicles.

To reap those benefits though, Tata Motors would have to shell put about $2 billion. Wow!

posted by Rocky at 8:37 PM

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