Isn't it funny that an Indian company is saving British jobs and pensions just when Britain is making it harder for Indians to enter Britain?
The Press Association reports:
Thousands of UK motoring jobs and pensions have been safeguarded after ownership of Jaguar and Land Rover passed from Ford of America to Tata Motors of India.
Jaguar Land Rover has about 13,500 employees.
So desperate was Ford to dump the business it even agreed to contribute $600 million to the workers' pension plans just to get the deal done even though it meant selling at a loss. The $1.7 billion it nets from the $2.3 billion deal is roughly a third of the price it paid for the two luxury brands -- $2.5 billion for Jaguar in 1989 and $2.7 billion for Land Rover in 2000 -- says the Associated Press.
The Indian business daily Business Standard sniffs Tata Motors is paying a hefty price for cars that don't make a lot of money:
The premier automotive group which includes Jaguar, Land Rover, Volvo and the Aston Martin—posted pre-tax results of a negative $1.9 billion in 2007 on revenues of approximately $33 billion.
But not every unionist is welcoming the saviour with open arms. Harrumphs Tony Woodley, Unite's joint general secretary: "We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable".
Isn't that pathetic, yearning for someone who longer wants you? Only lovers are allowed that -- and the very thick-skinned.
As BusinessWeek says:
For some Brits the deal marks a surprising twist in a long road for two storied corporate names. Could Winston Churchill, or even the current Queen of England, have imagined a half-century ago that a pair of Britain's proudest industrial icons would one day be owned by an Indian company?
They shouldn't be surprised if they took a close look at the British economy.
India is the second biggest investor in the UK after the US.
The fact is not advertised in Britain. Dear old Blighty still keeps a stiff upper lip.
Tata is not buying an absolute dud, says The Economist:
Land Rover has recently turned a corner (it made a profit of about $1.5 billion last year), but Jaguar cost Ford some $10 billion during its 18-year stewardship and its sales were in headlong decline, especially in America, its most important market.
Who gains most as Tata buys UK legends, asks the BBC.
- Ford cuts its losses after losing $2.7 billion worldwide in 2007 and a record $12.6 billion in 2006.
- British workers keep their jobs.
- Tata should have the cash to rescue the brands and develop new products to better compete with luxury automakers such as BMW, says the Associated Press.
