Tata Motors acquired Jaguar Land Rover (JLR) from Ford in 2008 for $2.3 billion. The acquisition included JLR's manufacturing plants, engineering centers, and worldwide sales network. While it provided an opportunity for Tata to enter the luxury vehicle market, it also posed challenges like integrating differing cultures and addressing JLR's financial losses. Overall, the acquisition was a big bet by Tata that required focusing on new markets, setting goals to improve JLR's performance, and understanding how to market premium brands.

1. STARATEGIC ACQUISITION

2. Acquisition of British Icons
- M&A on June,2008
- US$ 2.3 billion,
cash-debt free
Ford’s Premier Automotive Group (PAG)
High-end luxury cars
High-end SUVs
- Bought on 1989
- US$ 2.5 billion
- Bought on 2000
- US$ 2.7 billion

3. British Marques under Ford
 Ford is a leading automaker and third largest
 multinational corporation in the automobile industry
In 1989 : Jaguar from British Ley Limited
- In 1999 : PAG
- In 2000 : Land Rover (from BMW)
- In 2001 : Some Jaguar model (targeted young)
- In 2002 : Integrating Jaguar and Land Rover
 Range Rover MK 3
- In 2004 : Discovery 3
- In 2006 : Freelander 2
- In 2007 : Dismantle the PAG and sell JLR
 (Jaguar and Land Rover)
Alan Mulally became Ford's President and CEO in September 2006

4. • The Jaguar gradually became known as basically
on old man’s car
• The customers of Jaguar and Land Rover were
seen as being highly nationalistic and brand loyal
• Problem In 2006 : The worst loss in the history of
the company(12.7 billion)
• Solution : Ford needed to sell JLR in order to
salvage the North American business
British Marques under Ford
(http://www.nytimes.com/2007/07/17/business/17auto.htm)

5. • The bids for JLR (3 bidders: Tata Motor, M&M and one Equity Partners)
• JLR : 3 manufacturing sites, 2 advanced design centers, 16,000 workforce
• JLR’s labor union force
• Tata Motor => manufacture in UK, employ more people
• In 2008 : Ford decided on Tata Motor
Jaguar Land Rover ( JLR)
Respect for the two brands …
- Endeavor to preserve and build
on their heritage and
competitiveness, keeping their
identities intact.
- Allowing the management and
employee to bring their
experience and expertise to bear
on the growth of the business.
Ratan Tata, Chairman, Tata Group.

6. TATA Motors’ Acquisition of JLR
• JRL’s manufacturing plants
• Two advanced design centers in the UK
• National sales companies spanning across the world
• Licenses of all necessary intellectual property rights
Part of the purchase consideration
Impact from Acquisition
- Tata Motors was greeted with much hope and enthusiasm.
- Moody’s downgraded Tata Motors’ credit rating from Ba1 toBa2,
citing concerns on company’s finance.

7. Tata Motors entered into an agreement with Ford for the purchase of JLR.
Tata motors acquired the manufacturing plants, 2 advanced design and
engineering centers, and a worldwide network of 26 national sales companies.
Technologies were to be transferred from Ford to JLR.
Ford continues to supply JLR with vehicle components.
- supply new engine (period7-9 years)
- cooperation (no time end)
- financing to dealers & customer (transition period)
Tata committed itself to following ford’s business plan for JLR till 2011.
The deal….

8. The Benefits
• The vehicles from the Tata would have
better technology.
• Benefit from JLR’s service and
distribution networks.
• The deal also included the right to use the
Daimler brand which Jaguar had acquired
in 1960
• The opportunity to across different
geographies.

9. The Benefits
• The opportunity to across different
customer segments, planned to place in the super luxury segment
that Tata would be able to compete both at the low-end and
top-end market.
•TATA Nano: US$ 2,500
JaguarXf: US$ 64,000

10. The Challenges
• A huge capital expenditure during the downturn in
the global automobile industry.
• The lack of synergies, the need of the premium
segment did not go well with
Tata’s existing line-up.
• The difficult economic conditions in the key markets of
JLR including The US and Europe

11. The Challenges
• Tata Motor did not have the
experience in high-end luxury
vehicles market and manufactured.
The X-type, emitted around194 grams of CO₂ per kilometer.
• Reducing the CO₂ emissions
from passenger cars from 160g/km
to130g/km
• The cost of key components.

12. The Road Ahead
- Setting milestones and long-term goals by forming an integration
committee with senior executives from the JLR and Tata Motors.
- Concentrating on countries like Russia, China, India and the Middle East.
5th 7th
3th
8th

13. The Road Ahead
• Tata Motors needed to understand how
to market to the premium segment to
take advantage of the opportunities
provided by the acquisition of JRL.
• The way to managed these brands and
derived synergies from them would hold
the key to the success of JLR’s
acquisition

14. Thank You