Ford and Tata

Ford and Tata - Group C Ford and Tata In 1989 ford bought...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Group C Ford and Tata In 1989 ford bought jaguar for 2.5 billion and in 2000 bought land rover for 2.7 billion. Over the years they were owned by ford, it is estimated that about $10 billion had been invested in them. Jaguar, whose quality improved, never turned a profit, while Land rover, whose quality rated last in 2007 had 4% growth. Tata motors has know bought the companies for $2.3 billion, nearly a third of money ford spent. Erich Merkle the vice president at IRN inc., a automotive consulting firm, said it best "you have to cut your losses at some point." Ford decided to let go of companies that were not benefiting them, and concentrate on their parent lines. In every way this sell is a loss for them, and the company as a whole has had $15 billion is losses lately. With a surplus of money in the 90's, growth was the objective, but the acquisitions of jaguar and land rover spread Ford to thin. The only question, is if they could have lost more, keeping the companies, or eventually seen a profit. I think they made the best move under the circumstances.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This essay was uploaded on 04/08/2008 for the course INT 201 taught by Professor Pisani during the Spring '08 term at SUNY Rockland.

Page1 / 3

Ford and Tata - Group C Ford and Tata In 1989 ford bought...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online