HELLO TO TATA FOR LAND ROVER, JAGUAR

26-03-2008

Today’s takeover of Land Rover and Jaguar by the Indian car manufacturer Tata has been greeted with cautious optimism by the national media – although there are fears for jobs and quality in the years ahead.

Few commentators, for example, miss the opportunity to point out that these prestigious products will now be produced by the company that makes the world’s cheapest car – the Nano, which sells for just 100,000 rupees (around £1,300).

It's against that background that Tata – which owns other British brands including Tetley Tea and Corus Steel – now has to persuade motorists and its own workers that it has the nous to take the business forward in an increasingly tough global environment.

With more than 13,000 jobs at stake at Solihull and Castle Bromwich, there’s every reason to wish them well – and for The Times at least, the prognosis is optimistic.

They say, “both brands are now perceived as being on the rise after the launch of successful new models” and quote chairman Ratan Tata’s comments at the Geneva Motor Show last year that there’s no need to “tinker” with successful products (http://tinyurl.com/2zh6e6)

There are obvious worries about whether the new owners will want to slim down the workforce, however, and according to the Daily Mail, Land Rover’s Solihull plant is the most vulnerable to closure, “having already been given a warning to shape up or face shutdown” (http://tinyurl.com/2vokat)

Land Rover production is currently split between the West Midlands and Halewood on Merseyside.

The Guardian speculates that the sale will have yielded current owners Ford something in the region of £1.3billion and suggests the reason for the long, drawn out sale is they want a contract to continue supplying the engines (http://tinyurl.com/ypakv8).

Locally, the Birmingham Post points out the underlying problems of both companies – Jaguar makes terrific cars that aren’t profitable, while Land Rover is a much loved product which doesn’t always meet the quality standards buyers expect.

John Cranage’s perceptive article suggests that Ford may have sold the the pair off at the point where these problems are being resolved and wonders “Has Ford Sold The Family Jewels” (http://tinyurl.com/yvwckv).

Is the sale of Land Rover and Tata good news for the West Midlands? Leave a comment on The Stirrer Forum.