Christine Buckley
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The race for control of Land Rover and Jaguar is believed to have narrowed to two leading bids, those of Tata, the Indian conglomerate, and OneEquity, a group led by Jacques Nasser, the former Ford chief executive.
They have emerged as front-runners as unions meet shortlisted bidders today for the famous British marques.
Unions are believed to favour the bid from OneEquity.
They are being pressed for a quick decision from Ford, the car marques’ owners, in order to choose a winner next month.
Ford is trying to win support from the unions and ministers amid fears over the implications of the sale of the two brands, which have several factories in the West Midlands and Merseyside.
The unions have not publicly stating a preference, but are thought to be concerned about market positioning and outsourcing if Tata wins the bid.
Tata is about to market a car costing just over £1,000, which is being dubbed the people’s car, in India.
Ripplewood, one of the private equity groups that fell out of the running recently, has also questioned the idea of combining cheap car production with two brands that are synonymous with luxury.
Thomas Stallkamp, a partner with the American private equity group, has said: “I don’t understand how a company that’s going to make cars for $2,000 [£977] can sell cars for $120,000.”
Although Mahindra & Mahindra, which produces lorries and other vehicles in India, officially remains on the shortlist, it is thought that Ford is focusing on the bids from Tata and OneEquity.
Both of those offers, which could value Land Rover and Jaguar at up to £1 billion, are thought to be close.
Unions are also concerned about a continued commitment from Ford to the two brands.
They want it to keep a sizeable equity stake – up to 20 per cent – and to make a condition of any sale that Ford’s engine and components plants in Britain should continue to supply the two businesses for several years.
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The unions back Tata and not one equity? The meeting with Tata was by far the best and showed real promise for the future, unlike one equities
mark, birmingham, uk
Tata has demonstrated its ability in turning around other iconic British brands and strongly supporting the interests of UK workers. Acquiring Jaguar and Land Rover is a logical and natural progression for them in terms of entering the european market. Ford's failure to revive Jaguar has resulted in a complicated business operation and have consequently lost product focus with which Land Rover has been tangled. Tata's keep it simple approach is what's needed, and their commitment to Engineering and Research is a long-term strategy.
The 'strip it and flip it' bids from One Equity and Ripplewood will be disastrous for Jaguar and Land Rover's long-term strategic growth and reputation irrespective of whether Ex-Ford CEO's are combining to front the bids.
Michael L. Hall, London, UK
It union fears seems logical, but TATA's are a differenr arena. They sell everything from diamond jewelley, tea, and cars. Even coming to cars, they are releasing the Peoples car as well as Ferrari and Alfas Romeo Spider in 08. Thats one thing only TATA can do. Successfully. I guess even from the Union's perspective TATA will do a great deal of good than anyone else. They are also known for hassle free integrations, retaining the acquired business managements, and proving the critics wrong. !!
It'd be really sad for everyone if TATA doesnt win.
Udai, Glasgow, UK
This is not about making cars.. its about accuring the brands. These luxury brands will still be made by the exsiting skill port. Only change is the management. HOPEFULLY.
hence Tata are more suited for his becoz their track record with union handling has been good.
Jhonson, London,
Like Corus, JLR will also be Tata's
Vignesh, Bangalore, Karnataka, India
TATA's have had a successful joint venture with Mercedes Benz for over 30 years.It is rubbish to say that they only make pauper mobiles (nice turn of phrase). The difference is that they ALSO will make low-priced cars and the low price is due to the low production costs in India. Tata's do not make the Mahindra Jeep.
S.Langdon , Swansea, Swansea
"Unions are believed to favour the bid from OneEquity... " no wonder Ford want to get rid of thse brands. WIth Union people so thick upstars, no one will ever make any money with them.
Steven, London,
UK jobs will be more secured if they sell a car company to another car company and NOT an private equity company. Car company will always have interest to develop another company and take it forward, but the private equity firms are just concerned about profits (not employees) and will do any thing including slashing thousands of jobs to get those profits. Hence, I think it is better if unions prefer Tatas or Mahindra's instead of One equity.
Paninder Gupta, Hyderabad, India
I seriously hope Tata don't win it? have any of you ever been in one of their Jeeps?? Bad handling and seriously dangerous. I can't imagine a company that makes cheapo pauper mobiles will get control of Land Rover.
Luke Faichney, Robin Hood's Bay, England
Tata's should get it, as they have a good M&A record, with corus. And the future of automobile has to be seen in light of a partnership/ownership with a low cost production centre in India or China. Staying within Europe WON'T solve the problem, at best just post pone it. Which is why Ford is putting it up for sale. Tata's are also not just an automobile group, they are one of the world's largest and most diverse corporations, so synergies within the group would make better of the brands if it were to go to Tata's.
SK, London,
Hope Tata wins. If there's one company that knows how to integrate a business without hiccups, it has to be Tata
Prashanth, Bangalore, India
TATA will just buy it and go.
dada, qeqe,