DNA India reports that Tata is making a concerted effort to source parts for Jaguar and Land Rover from low cost countries like China, India (duh!) and Poland. DNA’s source for this claim said: “Earlier, Ford used to procure 17 percent from low-cost countries like Poland, China and India, whereas Tata Motors is planning to increase it to 35 percent.” Tata has buys more than just cheap parts. They outsourced low-end design and development work to lower-wage countries. But before you start the “If you thought JLR reliability was bad now…” don’t get too carried away. (Read More…)
Over the next few years, life in the UK is going to be pretty – austere. The Centre-Right government has been in power barely a month, and already they’ve slashed the budget by £6.2 billion. That was just the scalpel, wait till the axe comes. So, with a possible second recession in the offing, it’s time for some good news. And here it is… (Read More…)
As a car company, closing out 2009 with a profit is a commendable feat. Generally, you count yourself amongst the blessed if you are still alive (or bailed-out by friendly governments.) Let’s look at two companies that made money in 2009. At least, at some time in 2009. (Read More…)
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
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