Ford made a big mistake selling Jaguar Land Rover to Tata Motors
Ford Motors became cash strapped due to the US recession, and in order to save itself from bankruptcy they needed immediate cash flow. This lead…
Ford Motors became cash strapped due to the US recession, and in order to save itself from bankruptcy they needed immediate cash flow. This lead to the sale of their luxury brands; Jaguar, Land Rover and Aston Martin, probably their biggest mistake ever.
Ford took over Jaguar in 1989 while Land Rover came under its wing mach later in 2000. Both brands had iconic status in the market, but somehow Ford got it all wrong and failed to improvise, because of which JLR ran into losses worth billions.Ford had bought Jaguar and Land Rover brands for approximately $5.3 billion and sold it to Tata Motors for just $2.3 billion in 2008.
Today Jaguar Land Rover brand has thrived under Tata Motors. From a loss making firm, Tata Motors has converted JLR into a billion dollar profit making company. Of course Ford Motors is not going to come forward and officially admit about their failure to revive JLR, but the results are for everybody to see. JLR registered revenue of $15.8 billion and a profit of $1.7 billion for the financial year which ended on 31st March earlier this year.