Ford were mighty relieved when it managed to off-load it’s British marques, Jaguar and Land Rover, to Tata. Now after 1 year and 9 months of ownership, causing the normally profitable Tata Motors to fall into a £41 million pound loss and falling sales, how do you think Tata are feeling about the purchase of JLR? Sad? Depressed? Suicidal? According to steelguru.com, Ratan Tata is surprisingly optimistic.

If we assume that the global meltdown is a phenomenon that will be over in the near term, I think we will look back and say that these are very strategic and worthwhile acquisitions. There were many questions raised regarding whether these two large acquisitions Corus and JLR are worthwhile and whether the prices were right in terms of being at the top of the market, virtually. My view on that is that if you want to buy a house and that house is of a particular value, then it may not be there if you wait

(Read More…)

TTAC Commentator Karl_Donina writes:

Hi, Sajeev. I want to know why it’s so fashionable for automakers to provide obnoxiously labyrinthine automatic shifter gates. It seems to have started with Jaguar’s innocuous J-shaped gates of the ’80s, but these days it seems to have become passé to provide a simple, easy-to-use linear gate — push button or hold lever to one side to move in a straight line out of park and through the gears, or back the other direction.  Now every shift, whether from 1 to 2 or N to R or whatever, requires inconsistent and annoying fore-aft and transverse movements. The gates on Subarus I’ve driven lately are ridiculous, as is the one in the Yaris I rented last week. And there are many more. Thanks for whatever enlightenment you can provide.

(Read More…)

According to the Financial Times General Electric’s in-house virtual bank, GE Capital, has agreed to give JLR (Jaguar-Land-Rover) new financing secured by vehicles as they come off the production lines. Cash flow wise, JLR will get money almost instantly upon completion of production rather than later on down the road when the dealers and/or their banks pay for the vehicles. GE Capital says it looks forward to helping other European automakers free up working capital by borrowing against “underutilised assets”. This new kind of financing gives companies a powerful incentive to build cars for the “Sales Bank” even if no firm dealer commitments are in hand. Rut Row!

(Read More…)

As we wait for October sales to come rolling in, I’d like to take advantage of the calm before the storm to update our faithful readers on the wild week to come. Tomorrow I’ll be flying to Detroit to cover Chrysler’s five-year product and business plan. Luckily though, the trip will not be limited to a six hour presentation on “Fiat’s fuel-efficient engine technology” and sundry Pentastarred optimism. We’re also getting the opportunity to interview a certain Mr Ian Callum, chief designer for Jaguar. Do you have any burning questions about the new XJ, the XF or Jaguar’s new styling direction? Let us know and we’ll be sure to ask for you. We will also be covering the roast of Bob Lutz, so be sure to tune in for a report on the best jokes of the evening (although really, nobody expects them to improve on Farago’s effort). Though we’re thrilled to be able to offer a week of fresh reporting, interviews and jokes about GM’s Vice-Chairman, making it happen might require a slightly slower pace of content this week. Luckily Robert Farago, Bertel Schmitt, Paul Niedermeyer, Sajeev Mehta and other TTAC faves will be stepping up to keep the flow of news, commentary and analysis steady. So get ready for a big week, and take a moment to tell us what you most want to hear from Mr Callum, and the New New Chrysler. And thanks, as always, for your tips, comments and support.

India’s Tata has gone from darling to dumpling in just a year. The high profile Nano People’s Car project still hasn’t gone into production, and the $2.3b purchase of Jaguar and Land Rover now seems spectacularly ill-timed. Business Week recently covered the story with these great opening notes: “What a difference a year makes.”  India is in the throes of its own economic crisis; thanks to high inflation, high interest rates, tight credit markets, excessive corporate debt and a suddenly spending averse middle class. Pretty much like most places in the world, but a little different.

(Read More…)