Ford sells Jaguar, Land Rover to Tata

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steve

With "LOD" Since 1997
Ford sells Jaguar, Land Rover to Tata By TOM KRISHER, AP Auto Writer
39 minutes ago



Ford Motor Co. is selling its storied Jaguar and Land Rover businesses to India's Tata Motors Ltd. in a deal that will net the struggling U.S. automaker about $1.7 billion — roughly a third of the price it paid for the two luxury brands.

The deal announced Wednesday will expand the Indian carmaker's reach around the globe.

The agreement had been in the works for months as cash-strapped Ford sought money to fund its turnaround plan.

Tata will pay $2.3 billion for the British brands, but at closing, Ford will pay about $600 million into the Jaguar-Land Rover pension fund, Tata's statement said.

Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. But it has been struggling and wants to focus on its main brands.

Tata said it expects no significant changes in the terms of employment for Jaguar and Land Rover's 16,000 workers. It said the transfer of the brands would take place at the end of the second quarter.

"Jaguar and Land Rover are terrific brands," Ford CEO Alan Mulally said in a statement. "We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship.

"Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all."

Tata said in its statement Ford will continue to supply engines, transmissions and other components "for differing periods." Ford also will continue to provide environmental and other technologies as well as engineering support.

Tata Chairman Ratan N. Tata said his company will try to build on the brands' heritage, keeping their identities intact.

"We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business," he said in a statement.

Roger Maddison, an official with Unite, Jaguar and Land Rover's main labor union, said the deal is good news for the automakers' employees as well as those who work for parts suppliers.

"Unite has secured written guarantees for all five UK plants on staffing levels, employee terms and conditions, including pensions, and sourcing agreements. The sale ensures our members futures and we look forward to working with Tata," Maddison said in a statement.

Ford shares rose 8 cents to $6.08 in premarket trading Wednesday. Its shares have traded in a 52-week range of $4.95 to $9.70.
 
They should have done this a long time ago. Ford was putting those other brands ahead of Lincoln as their premier cars. Maybe they can focus on making Lincoln a world class bench mark car again.
 
Ford isn't making any world class benchmarks in any other categories just yet... :( I doubt they will recover but you never know...

MB, BMW, Lexus, Infiniti, Audi are VERY hard to beat.
 
maxmk8 said:
Ford isn't making any world class benchmarks in any other categories just yet... :( I doubt they will recover but you never know...

MB, BMW, Lexus, Infiniti, Audi are VERY hard to beat.
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Yes, but at one time long ago Caddy and Lincoln were hard to beat, before your life time. . Some of the first imports to this country were a joke. It won’t happen over night, it won’t be easy but hopefully they will get back to making desirable and innovative cars again.
For what it was starting back in 1993 (15 years ago), the mark viii was innovative. Hands free voice activated phone, 4 cam 32 valve v8, load leveling air suspension, traction control, 4 wheel ABS. Then mid year 95 the first North American car with HIDs. The 2nd gen neon tail lamp, coil on plug ignition, led side view mirror turn signals, puddle lamps. Theses things today are the norm but they were not back then.
 
Now don’t forget it wasn’t that long ago that Lexis was just another Jap car/ Toyota with another badge, Audi was know for being a lode of JUNK VW and the same can be sead about the other mentioned. BUT if ford is going to get back in the world market they need to stop listening to the been counters and make cars that people really want. The MKZ just looks like another car for TODAYS OLD PEOPLE, a more aerodynamic K Car. So the expedition sold well making it look square and boxy but don’t make ever car in the line look like it. Then look what the did with the LS good-looking car 32valve V8 (GIVE ME A 5 or 6 speed STICK SHIFT) the Australians have a 4 door V8 with a stick why cant I? The TOWN CAR outsold Cadi because it was rear wheal drive, Cadi moves back and gives it some real power and now look at the sails. Even the Japanese luxury cars have all made the move, LOTS OF POWER, LOOKS TO DIE FOR, REAR WHEAL DRIVE and A BROD CHOICE OF TRANSMISIONS. "Come on FORD give us what we want, don’t tell us what we want!"
 
steve said:
Yes, but at one time long ago Caddy and Lincoln were hard to beat, before your life time. . Some of the first imports to this country were a joke. It won’t happen over night, it won’t be easy but hopefully they will get back to making desirable and innovative cars again.
For what it was starting back in 1993 (15 years ago), the mark viii was innovative. Hands free voice activated phone, 4 cam 32 valve v8, load leveling air suspension, traction control, 4 wheel ABS. Then mid year 95 the first North American car with HIDs. The 2nd gen neon tail lamp, coil on plug ignition, led side view mirror turn signals, puddle lamps. Theses things today are the norm but they were not back then.
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Absolutely... but at a cost of over 40k it was also increadibly expensive.

Lincoln/Ford did some amazing things on the Mark... but I really think they need a world Class TC replacement. Something that will make others envious..
 
maxmk8 said:
Absolutely... but at a cost of over 40k it was also increadibly expensive.

Lincoln/Ford did some amazing things on the Mark... but I really think they need a world Class TC replacement. Something that will make others envious..
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I don’t agree with you at all on cost, just look at the cost of other cars in the segment. You can’t get a 40k car then expect to get what you would in an +80k luxury import. If they are going to make a world class car it will probably have to have a base price of 70k or more today. Go back in history and see what Caddys and Lincolns cost back in the day, then index that with inflation.
 
Well sure... but honestly at 70k it would have to be better than an Audi S5 or BMW M3.... since those retail for 50-65k. And I just don't see Lincoln making a luxury coupe that will run 12 second 1/4 miles while having a better interior than the germans. But only time will tell.
 
Eh? M3 is a mid to low 13 second car, and the Audi S5 is probably just a tad slower. Given that the CTS-V is exactly along those numbers (and some magazines are reporting the CTS-V at 12.9) I think it is perfectly possible for Lincoln to produce just the car you are talking about.

Is it likely? No. Ford really really has head in butt problems right now. But it is possible.
 
I hate to say it out loud in fear of sounding like a communist but the underlying problem is the American Auto Workers Union. The US Autoworkers are the highest paid in the world. If all your cost of manufacturing is going in the labor and people will only pay a certain price for your product what do you do? GET CHEEPER METREAELS build crapy cars. I know guys that work at the Arlington TX GM plant, hardly any education; they don't lift anything over 40lbs and take home $70k ($70k in Dallas is a lot of money) doing what honestly is worth $40k a year. Australia, Germany, Scotland, Japan all make the top cars (excluding the super cars) the people get paid what they are worth and a better car is made. IF you do a bad job you get fired unlike the US where the Union fights to keep your job. GM is surviving because most of the cars sold world wide are made in other countries" the GTO is a HOLDEN_MANORO made in Australia they will soon be shipping another AU car over and re-badgeing it to get the cars you want and America can no longer build.
 
Devin said:
Eh? M3 is a mid to low 13 second car, and the Audi S5 is probably just a tad slower. Given that the CTS-V is exactly along those numbers (and some magazines are reporting the CTS-V at 12.9) I think it is perfectly possible for Lincoln to produce just the car you are talking about.

Is it likely? No. Ford really really has head in butt problems right now. But it is possible.
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Umm no... the new M3 is a high 12 second car and the new S5 is a low 13 second car. The new CTS-V has the crazy 6.2L supercharged V8... (550+hp) we'll see where it comes in...
 
ggfrank21 said:
I hate to say it out loud in fear of sounding like a communist but the underlying problem is the American Auto Workers Union. The US Autoworkers are the highest paid in the world. If all your cost of manufacturing is going in the labor and people will only pay a certain price for your product what do you do? GET CHEEPER METREAELS build crapy cars. I know guys that work at the Arlington TX GM plant, hardly any education; they don't lift anything over 40lbs and take home $70k ($70k in Dallas is a lot of money) doing what honestly is worth $40k a year. Australia, Germany, Scotland, Japan all make the top cars (excluding the super cars) the people get paid what they are worth and a better car is made. IF you do a bad job you get fired unlike the US where the Union fights to keep your job. GM is surviving because most of the cars sold world wide are made in other countries" the GTO is a HOLDEN_MANORO made in Australia they will soon be shipping another AU car over and re-badgeing it to get the cars you want and America can no longer build.
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Did ever look into how much labor (assembly line) goes into making a car? I think you would be surprised by the #... If memory serves me right it was less than 10 hrs a car. So that would mean at most $1000 even it costs them 100 an hour to pay those workers.
 
maxmk8 said:
... even it costs them 100 an hour to pay those workers.
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It would not suprise me at all if the labor costs were that much or more. Much like national Social Security, those deferred pension costs are eating the big 3 automakers alive. Even discounting the pension costs, just the actual hourly wage combined with the other benefits and employer matching witholdings would add up very quickly. A typical non-union hourly wage cost is actually 150% or more the actual wage paid to the worker.
 
Don’t forget there are more people than just the FINAL ASSEMBOLY LINE. You have plants that make the seat, plants to assemble the dash, plants that make and assemble the motors, plants to make whirring harnesses ECT. Everyone under the umbrella. Say a guy works at a plant that makes a $20,000 car and GM profits $5,000. How many cars would have to be soled just to pay for one guy to work a year? And you have 1500 people at 1 plant. Not to mention all to costs of keeping a factory open. I work at a large BAR we have another bar and 2 large night clubs all side-by-side equaling a 30,000sqft building, the electric bill is $15,000 a month can you imagine what a assembly plant bill would be
 
maxmk8 said:
Did ever look into how much labor (assembly line) goes into making a car? I think you would be surprised by the #... If memory serves me right it was less than 10 hrs a car. So that would mean at most $1000 even it costs them 100 an hour to pay those workers.
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I think GM said last year that about $3,000 of a cost of a car goes into current and retired workers heath care cost.
 
Lets all not forget what we learned in the 80s and early 90's
Car’s made in other countries were a lot cheaper, grate quality and affordability and the big 3 couldn’t compete agents them so the US past an IMPORT TAX forcing the imports to be the same price as American cars. So after they razed the prices the imports started giving you more bang for the buck and better quality. Compare a Civic to the Focus or Cobalt you get more in a Civic or the Camry to the Tories and Malibu you get a VW and the US isnt making anything that compairs. Its the same thing with the airline industry US airlines can not compete globally do to overpriced employee costs and remain profitable and the only reason you go in to business to make profits.
 
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