Deal with JLR puts two new jewels in Tata's crown

IT'S A DEAL: For Tatas the JLR deal will be the second marquee acquisition after Corus.

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New Delhi: The Tatas have done it again! They've added the two top iconic automobile brands, after launching the world's cheapest car the Nano. On Wednesday, the Tatas officially bought over jaguar and land rover for $ 2.3 billion.

The deal has finally come through after a struggle of nine months; the Tata's have signed the dotted line for $ 2.3 billion. Two well-known UK brands — Jaguar and Land Rover are finally in Tata's lap, and will catapult Tata motors into the global league.

Mr. Ratan N. Tata earlier said, "We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness."

This deal has brought a smile not only on the faces of Tata's but also the Union; with Ford contributing $ 600 million towards Jaguar Land Rover pension plans.

National Secy Unite Union, Roger Maddison says, "All our fears have been allayed, we are pretty sure we are working with a reputable and honourable company and the guarantees given by the Tatas. We are more than happy with those on pension, plans and jobs in UK and on the future investments."

It all started on June 11 2007 when Ford first announced its decision to sell off Jaguar, Land Rover. Three bidders and five months later on January 3 2008 Ford announced Tata Motors as a preferred bidder for JLR, and two months later on March 26 2008 Tata is now the proud owner of JLR.

Tata taking over JLR will not make the British machines cheaper for Indians, as the cheaper Jaguar will still be upwards of Rs 40 lakhs. Analysts say, the best thing Tatas can do is to keep the British identity of these brands alive.

Editor Autocar India Hormazd Sorabjee says, "They've got to mix the brands globally, they've got to make sure that the products that have just come out do well in the traditional markets, where they are aimed at. So in India frankly I don't see any big change."

With the Tata - JLR deal going through, India Inc. is definitely going all out to make a mark in the global economy, and for brand Tata this will be the second marquee acquisition after Corus.