Tata Motors' Acquisition of Jaguar and Land Rover


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Case Details:

Case Code : BSTR313
Case Length : 18 Pages
Period : 2007-2008
Pub Date : 2009
Teaching Note : Available
Organization : Tata Motors, Jaguar, Land Rover, and Ford Motors
Industry : Automobiles
Countries : India/UK/US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Acquisition of JLR provides the company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the company's business diversity across markets and product segments."1

- Tata Motors, in April 2008.

"If they run the brands as a British company and invest properly in new product, it will be successful because they are still attractive brands."2

- Charles Hughes3, Founder, Brand Rules LLC4, in 2008.

"Market conditions are now extremely tough, especially in the key US market, and the Tatas will need to invest in a lot of brand building to make and keep JLR profitable."5

- Ian Gomes, Global Head, Emerging Markets, KPMG, in 2008.

Acquisition of British Icons

On June 02, 2008, India-based Tata Motors6 completed the acquisition of the Jaguar and Land Rover (JLR) units from the US-based auto manufacturer Ford Motor Company (Ford) for US$ 2.3 billion7, on a cash free-debt free8 basis.

JLR was a part of Ford's Premier Automotive Group9 (PAG) and were considered to be British icons. Jaguar was involved in the manufacture of high-end luxury cars, while Land Rover manufactured high-end SUVs.

Tata Motors' Acquisition of Jaguar and Land Rover - Next Page>>

1] Tata Motors, Annual Report, 2007-08.
2] David Kiley, "Jaguar: Finally Ready to Roar?" BusinessWeek Online, March 27, 2008.
3] Charles Hughes was involved in the launch of Land Rover North America in the US in the 1980s.
4] Brand Rules LLC is a marketing consulting consortium that provides advice about shaping and sustaining brands.
5] Sudeshna Sen, Lijee Philip, Kausik Datta, "Jaguar, Land Rover Find a New Driver in Tatas," www.economictimes.com, March 27, 2008.
6] Tata Motors, part of the Tata Group, one of the largest business conglomerates in India with a presence in over 80 countries and a work force of around 290,000 people. Tata Motors is the largest automobile company in India with gross revenue of Rs.330.93 billion in 2007-08. Tata Motors is also the second largest bus manufacturer and the fourth largest truck manufacturer in the world. Tata Motors unveiled the cheapest car in the world, the Tata Nano, priced at around US$ 2,500, in early 2008.
7] As of September 19, 2008 1 US$ = Rs.46.36 (Indian Rupee).
8] Cash-free, debt-free transaction refers to the amount the buyer would pay if the seller had no debt and no cash on the balance sheet of the company.
9] Premier Automotive Group of Ford consisted of Jaguar, Land Rover, Aston Martin, Volvo and Lincoln.


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