This document summarizes Tata Motor's acquisition of Jaguar Land Rover from Ford in 2008. It discusses how Jaguar and Land Rover were struggling under Ford's ownership, incurring large losses. In 2007, Ford announced plans to sell the brands. Tata Motors and Mahindra & Mahindra emerged as top bidders, and in 2008 Tata Motors was selected as the preferred bidder, completing the acquisition for $2.3 billion later that year. The document then analyzes the strengths, weaknesses, opportunities, and threats of the acquisition for Tata Motors.
3.  JLR was a part of Ford's Premier Automotive Group (PAG) and were
considered to be British icons.
 Jaguar was involved in the manufacture of high-end luxury cars.
 Jaguar Cars Ltd. ( better known simply as Jaguar) is an automaker
from England,United Kingdom that manufactures luxury and executive
motor car.
 Sir William Lyons founded jaguar as the Swallow Sidecar Company in
1922, originally making motorcycle sidecars before switching to
passenger cars.
4.  Reports said losses at Jaguar stood at USD 715 million in
2006.
 Jaguar was not able to provide any profit for ford because
of the high manufacturing costs provided in the United
Kingdom.
 Ford finds it difficult to manage the operations of Jaguar.
 In 2007, Ford declares to sell it’s luxurious brand Jaguar.
6.  12/06/2007- Announcement from Ford that it plans to sell Land
Rover and Jaguar.
 August 2007 - Major bidders were identified Tata Motors , M&M,
Ceribrus capital Management, TPG Capital, Apollo Management India’s
 Tata Motors and M&M arrived as top bidders ($ 2.05b & $ 1.9b).
 03/01/2008 - Ford announces Tata as the preferred bidders.
 26/03/2008 - Ford agreed to sell their Jaguar Land Rover operations
to Tata Motors.(2.3b).
 02/06/2008 - The acquisition was complete.
7.  Tata wanted to make a global impact and it thinks that buying these
brands at a lower rate now, will give better value later on.
 This acquisition also eases the entry of Tata in European market
which it has been eyeing for long.
 At the price staring from 63 lakh and going upto 93 lakh, it seems Tata
has just got the right place to compete with the current market leaders
in luxury brands – BMW, Audi, Mercedes
 Access to large distribution network
 JLR had many new models lined up for next 3 years, so no much
work, just profits
 Strong R & D culture and facilities
9. Strengths:
Weaknesses:
Tata’s strong management
capability
Strong monetary base to invest
Jaguar’s declining sales record
Opportunities:
Inexperience of handling such
luxury brands
Tata’s Jaguar
Land Rover
Acquisition
Support from Ford in terms of
Technology, Engine, IT,
Accounting
Adding up of luxury brands in
the product line
Access to European Market
Threats
Market is volatile and driven
by new products
Strong presence of competitors
like Mercedes, BMW, Lexus
and Infinity
11.  Desire to have high level of luxury car with performance
 Unique driving experience
 Lifestyle perspective – Status Symbol
 Craze to be Fast and Powerful
 Brand Conscious
 To make a style statement
12.  Target Market – Age Group 30 – late 40 yrs.
 Indian metro cities Delhi, Mumbai, Banglore, Hyderabad
where the majority of rich are loacted
14.  Jaguar Drive Control
 Electronic Parking Brake (EPB)
 Computer Active Technology Suspension (CATS)
 Key less entry system
 Start stop button
 Jaguar Voice – voice activated controls
15.  Mood Lighting
 Advanced GPS
 Auto DJ Hi-Fi Sound System
 Intelligent Headlamp
 Bullet Proof Body (Optional)
16.  High Value Product
 A Competitive Advantage
 Unique in its class
 To achieve good margins
 Within the reach of targeted customer base
18.  Jaguar/Land Rover lost 306 million pounds ($504 million)
for the fiscal year ending March 2009
 Demand for luxury cars collapsed as a result of financial
crisis
 Tata Motors reported a net loss of Rs3.29bn ($67 million)
for the quarter to end-June
 Extremely high manufacturing costs in BritainEliminated
more than 2,200 jobs
20.  Improved financial conditions
 Refinancing from CITI group and JP MORGAN
 Started making profits in 2010 upto 41 %
 Entered CHINA in march 2012 with a joint venture with
Chery automobiles