The Price of Owning a ‘Cheetah’ (The Jaguar)

Abstract

Abstract This case study discusses the acquisition of herculean automobile giant JLR by an Indian automobile company Tata motors. Prior acquisition by Ford motors, Jaguar, and Land Rover were owned by British multinational automobile company, ‘British Leyland’. Ford first acquired Jaguar brand in 1983 for $2.5 billion and then Land Rover 2000 for $2.7 billion brand from British Leyland. In spite of multiple attempts, Ford motors recorded heavy losses due to these two brands. The losses continued until these two brands were acquired by Indian automobile giant Tata motors in 2008 for just $1.7 billion. Many critics felt that Ford motors is the biggest loser in this merger deal. On the other hand some critics are also of opine that, Tata motors will also be on the losing side. They feel that, though Tata motors are in the entry-level passenger car segment, there expertise is in heavy load goods vehicles. They feel that what Ford could not achieve in 20 years, it is impossible for inexperienced Tata motors in globally acceptable luxury passenger car market.