Tata purchases Land Rover and Jaguar for $2+ Billion

145_12Lg Though the details aren’t public yet, this much is for sure – Ford has sold Land Rover and Jaguar to Indian automaker Tata.  The deal is for “over $2 billion” – with Ford contributing $600 million for Jag and LR employee pensions.  Tata did take out a whopping $3 billion loan to finance this purchase.

Wow, it sure looks like Ford got away clean.  Even though they had to front $600 million to pay off their employees, they got the better deal, far and away.  Sure, Land Rover is reportedly profitable ( though they don’t break out the numbers ).  But Jaguar has been hemorrhaging money for years, with no end in site.  Tata bought these two brands without having the cash on hand to do so.  Are they going to take out a loan every year to cover Jaguar’s loss?

Maybe money works differently in India, and a loss is a profit.  Or something like that.  Otherwise I fail to see Tata’s logic in making this deal.  Ford, on the other hand, Kudos.  In a few years we’ll look back and call this the greatest auto deal of all time.

Published on March 26, 2008 in Ford,Jaguar,Land Rover

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