UK component suppliers prefer Tata at the wheel of Jaguar and Land Rover
28 Mar 2008
Mumbai: Component suppliers to Jaguar and Land Rover are happy with the Tata Group at the wheel of the UK luxury car brands.
The Tatas paid $2.3 billion for acquiring the two UK car brands from global car maker Ford, earlier in the week. (See: Tata Motors confirms Jaguar, Land Rover deal with Ford for $2.3 billion)
The online version of BBC has quoted John White of IM Kelly Automotive as saying that he was happy because Tata "was successful with every single thing that they do". IM Kelly automotive supplies interior trims and finishings for Jaguar and Land Rover.
It also quoted Geoff Bayton, a director motor component supplies of B-squared, which has around 20 staff in Coventry, as saying that initially, there was worry on account of "different consortiums that were looking to get involved", but the take over by the Tatas gives them a "good feeling", and has given the workforces a lot of confidence.
Coventry Telegraph hailed the acquisition as "great news for workers across Coventry and Warwickshire," saying that the deal was welcomed by workers, trade unions, business leaders and local suppliers alike. It said that the acquisition "secures the jobs of thousands of workers in Coventry and at Gaydon in south Warwickshire."
Ford exited the two luxury marquees to focus on reviving its fortunes in its loss-making home market in the United States, which according to a plan scripted by Alan Mulally, president and CEO, " The way forward", will see it turn around it North American operations over the coming two years.
Jaguar had been a loss making brand for Ford ever since its the American car maker brought it under its wing in 1989. Jaguar's sales have declined 25 per cent during February 2008, as compared to February 2007. In the US, its key market, year on year sales were down by over a third compared to sales figures from February 2007.
Though Land Rover was profitable, its waning sales graph did not work in its favour when the time came for Ford to decide whether to jettison the brand. Land Rover's sales in the United States were down by 10 per cent, and European sales down 12 per cent compared to its sales figures from a year ago in 2007.