Investors are really nervous about how Tata is going "drive" the Jaguar brand and its sister in the JLR brands, Land Rover. They cite the 3 things for concern-- Jaguar is a loser, costing Ford $10B; The U.S. Car Market is in downturn; and more so-- Jaguar does not find the into Tata line, particularly vehicles like the Nano. More unsettling are things like "No synergies", new carbon emission laws, no hybrid technology, and keeping the 3 plants in the UK.
Did Tata get a bargain or a basket of trouble? Tata has got to sell assets including it steel company to pay Ford. The JLR management team has sold Tata on their ability to deliver on a 5 year business plan of which no one on the outside has seen.
At the moment, it looks like what the U.S. Global market needs is not more luxury cars powered by 400 plus HP engines but a smaller, more effecient, green, and functional vehicles-- a mix of what Tata has been touting globally and what Toyota and Honda are doing, and what Ford and GM keep trying to convince us they are making or going to be making.
If you want to gain a better understanding of the Tata Turmoil, see the March 29th issue of the Economist or go to www.ft.com and find the great reporting that the Financial Times has been doing and will keep doing. Also monitor www.automotivedigest.com to keep abreast of the impact of this sale on the Ford and the U.S. market.
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