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<strong>TAH</strong>-<strong>TAH</strong> <strong>FORD</strong><br />
By Calef Letorney<br />
Just days before this issue of The NEWS was to go to press the TATA<br />
Group’s acquisition of Jaguar-Land Rover was officially announced.<br />
At this time the details of the deal are still being ironed out, but both<br />
parties have committed to the transaction and the negotiations are<br />
likely to be concluded by time you read this. Of course this new<br />
information makes the story we had intended to run in this spot,<br />
entitled “Whose Your Daddy?” focusing on the uncertainty in the next<br />
owner of Jaguar-Land Rover, a bit behind the times. Now that we know<br />
who our daddy is, I am interested in finding out a little bit more about<br />
him and discuss some of the possible ramifications for Jaguar-Land<br />
Rover and the North American Market.<br />
Tata Telco 1613 C<br />
A remarkable example of Tata’s ability to produce vehicles<br />
inexpensively can be seen in their new car designed especially for the<br />
Indian market, which is scheduled to be unveiled shortly, that is said<br />
to retail at only 100,000 rupees ($2,500)! Having an understanding<br />
of Tata’s modus operandi raises some serious questions about their<br />
intentions for Jaguar- Land Rover.<br />
The first question in many analysts’ mind is: What will become of<br />
the Land Rover production facilities in the UK? With an eye<br />
for efficiency, Tata has incentive to completely shut down the UK<br />
production ASAP and relocate production to India where they can<br />
combine with current facilities and take advantage of cheap labor.<br />
Land Rover LRX concept<br />
Photo Curtesty of<br />
Tata<br />
Photo Curtesty of<br />
Land Rover<br />
Pokhara Nepal<br />
Land Rover LRX concept<br />
Photo by: Calef Letorney<br />
Originally a locomotive manufacturer, the Tata Group of India<br />
was established in 1945. When India gained independence in 1947<br />
it expended a great amount of resources in its rail system and<br />
Tata flourished. Seeing automobiles as the future, Tata acquired<br />
technology from Daimler-Benz AG and began manufacturing trucks.<br />
Since then, Tata has diversified into steel, power, hotels and<br />
information technologies. However, Tata is still best known for its<br />
big, simplistic trucks (such as the ones pictured about) that are<br />
popular throughout the Asian market.<br />
Renowned for efficient and cost effective manufacturing Tata has<br />
been very successful in keeping costs down to maximize profits.<br />
Photo Curtesty of<br />
Land Rover<br />
This seems logical as other manufacturers are choosing India. GM is<br />
spending $6 billion to build a plant and develop vehicles in India for<br />
the vehicles in the Asian market.<br />
Another prime reason to close the UK production facilities is that<br />
Tata could then develop the valuable real estate on which the Solihull<br />
facility is located. Surely this is within the scope of an organization as<br />
diverse as the Tata Group. And so it seems likely that Tata will move<br />
production to India, cuting up the Jaguar-Land Rover that we have<br />
come to know and love.<br />
GASP! What will happen to the quality of Land Rovers? After all<br />
Indian production is not renowned for quality and Tata is certainly<br />
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