Workers Unions back Tata in bid for Jaguar, Land Rover: Report
22 Nov 2007
Mumbai: Union leaders at Ford Motor Co''s Land Rover and Jaguar units in the UK have declared support to Tata Motors'' bid for the brands if Ford opts to sell them, press reports said.
Workers, the Financial Times reported, would prefer to stay as a part of Ford Motor Co. But, in case Ford decided on a sale of the UK brands, "finding a partner with an established presence and background in manufacturing", would serve the workers'' best interests, it added.
The statement followed presentations made in London by Tata Motors and rival Mahindra & Mahindra Ltd as also buyout firm One Equity Partners, the report said.
Tata Motors said it was committed to the two brands as a long-term investment and endorsed their current management, the report said, citing a person familiar with the developments.
While union backing is not an essential condition for sale of companies, the Ford deal is considered politically sensitive as it may end up in future offshoring of jobs.
Ford also would remain a major employer in the UK even after it sells the two luxury brands, in which it may also remain a minority partner.
Ford has been planning the sale of Jaguar and Land Rover since June this year and expects to close a deal by early next year.
Analysts value the deal at around $1.5 billion. Unions see Tata as the only possible bidder "with enough money, clout and experience" to successfully manage the brands, a report on the Wall Street Journal website said.
