A long time coming, but Land Rover-Jaguar deal is done
The final completion of the £1.15-billion acquisition of Jaguar Land Rover by India's Tata Motors has been a long time coming but it has now been achieved.
All parties have signed on the dotted line and now a new era for the two famous companies is about to begin.
Firms in the West Midlands involved in supplying the two companies with components are looking to continue their relationship.
They will have been encouraged by the remarks from Tata chairman Ratan Tata following the completion of the deal.
"We are looking forward to extending our full support to the Jaguar Land Rover team to realise their competitive potential," he said.
"Jaguar Land Rover will retain their distinctive identities and continue to pursue their respective business plans as before. We recognise the significant improvement in the performance of the two brands and look forward to this trend continuing in the coming years.
"It is our intention to work closely to support the Jaguar Land Rover team in building the success and preeminence of the two brands."
The deal has seen Tata acquire the full ownership rights of Jaguar and Land Rover including all intellectual property rights, its manufacturing plants, the two advanced design centres in the UK, and a worldwide dealer network.
In addition, long-term agreements have been entered into for supply of engines, stampings and other components to Jaguar Land Rover.
Other areas of transition support from Ford include IT, accounting and access to test facilities. The two companies will also continue to co-operate in areas such as design and development through the sharing of platforms and joint development of hybrid technologies and powertrain engineering. The Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers for a transition period. Tata Motors is also in an advanced stage of negotiations with leading auto finance providers to support the Jaguar Land Rover business in the UK, Europe and the US, and is expected to select financial services partners shortly.
All of which tends to suggest business as normal - something reinforced with the immediate permanent appointment of interim chief executive David Smith.
However, there will no doubt be a few anx-ious moments until the future of the supply chain is clarified. What is not in doubt, is the support being offered to the new owners by those in the region.
Minister for the West Midlands Liam Byrne is the latest to pledge his support.
He said: "When I met Tata in India earlier this year I was impressed by the long term view they took of their investments. With record production at Land Rover and exciting new products at Jaguar there is every reason for the firms to face the future with confidence.
"This deal looks brilliant news for high value manufacturing in the Midlands and our stronger and stronger links with the great growth market of India."
Anyone doubting Tata's capabilities for managing such high profile businesses should not have their judgements clouded by the firm's only other foray into the UK automotive sector, the ill-fated and unlamented City Rover, which was essentially a rebadged Tata Indica.
Tata Motors is India's largest automobile company, with revenues of £4.5-billion in 2007-08. With more than four million Tata vehicles on the roads of India, it is the market leader for commercial vehicles and among the top three in passenger vehicles.
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