Ford purchased Jaguar in 1989 in a bidding war with General Motors paying 2.5billion dollars which was quite higher than industry estimates (1.3 billion)
Land Rover was sold by BMW to Ford Motor Company for 2.7billion dollars in 2000
Jaguar sales in the U.S. were down by 25.7% in May 2007 from the same period a year ago. Land Rover sales were down by1.8% despite having an entirely new model, the LR2, on sale.
Reason for the Deal (Contd.)
Jaguar sales dropped 33% in the US and Europe in the first two months of 2008
Land Rover sales fell 13% in the US and around 7.7% in Europe during the same period.
Ford has lost 15.3 billion dollars over the past two years and responded by shuttering plants and slashing its workforce in North America by more than 40,000 workers.
Ford is getting less than half what it paid for the two brands
Ford sold Jaguar and Land Rover as a package since the engineering, purchasing, and distribution of the two brands have become interdependent as Ford has tried to find efficiencies running the businesses. Jaguars and Land Rovers are even manufactured at a common plant today
Ford is considering a restructuring plan in North America with the amount it is getting from the deal
Though Land Rover sales have been softening in some markets especially in Europe, on a six month basis Land Rover sales have gone up over 2007 globally, mainly because of higher volume of sales in Russia and China.
In June 2008 Jaguar was sold 3836units in West Europe as compared to 2924units sold in June 2007. It was a 31% increase.
The Indian Automobile Market is expected to grow at a CAGR of 9.5 percent amounting to Rs. 13,008 million by 2010
The liberalization policies followed by the Indian government had been inviting foreign investors and manufacturers to participate in the car market in India.
It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe.