Tata angles for PAG brands

In reports published by the Sunday Times and Autoblog.com, Tata Motors is shaping up to be the successful bidder for two prestigious British brands, Jaguar and Land Rover -- currently the property of the Ford Motor Company.

Tata is one of just two bidders remaining in the running for the purchase of the two companies. The Indian manufacturer is believed to have the development capital to fund future product ranges for both companies and is alleged to have offered assurances that staff will not be shed and production will remain in Britain.

Jaguar is forecast to lose US$500 million this year, but Land Rover is expected to post a profit of US$1 billion. Part of Jaguar's losses can be attributed to the development of the new XF model (pictured, more here). The sale may nett Ford in the vicinity of US$3 billion for the two companies, both formerly part of the now defunct British Leyland Group.

Jaguar was privatised under the Thatcher government and subsequently purchased by Ford. Land Rover was sold along with the rest of the Rover Group to BMW and then picked up by Ford when BMW divested itself of its British holdings in 2000.

Tata is one of two prospective buyers remaining after another Indian company, Mahindra & Mahindra, ceased negotiations with Ford. The last hindrance to Tata's purchase of the two companies is 'One Equity', an investment firm headed by discredited former Ford chief -- and Australian -- Jac Nasser.

Tata's bid has been welcomed and granted preferred status by British government and trade union officials, but the final decision rests with Ford. That decision is expected to come within approximately three weeks.

The sale of Jaguar and Land Rover leaves just Volvo in Ford's Premier Automotive Group portfolio and follows the company's sale of Aston Martin earlier this year (more here).

To comment on this article click here