Call it distress sale or speedy transformation, head honchos at the Ford headquarters at Dearborn, Michigan, US, have been working towards reorganising their product portfolio and getting focus. With more than $15 billion in losses, the management seems to be on the fast track to get things going.
It was in 1989 that Ford had purchased Jaguar for $2.5 billion and Land Rover for $2.75 billion. The current deal, struck at $2.30 billion, seems to be a distress sale. However, after suffering a $12.6 billion loss in 2006, its largest in the past century, the management had initiated a plan to refocus its attention.
The transaction, therefore, is the culmination of Ford?s decision last August to explore strategic options for the Jaguar Land Rover business, as the company accelerates its focus on its core Ford brand and ?One Ford? global transformation, said a company statement. The company was seen struggling to manage these premium brands, which have a large presence in the UK and the US markets.
Alan Mulally, president and CEO, Ford Motor Company, said, ?Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all.?
Both Ford and Tata Motors reckon that the arrangements in the deal will will support Jaguar Land Rover?s current product plans, while providing Jaguar Land Rover freedom to develop its own stand-alone capabilities in the future that will best serve its premium manufacturer requirements.