Finding the 'Why' in Jaguar, Land Rover's Sale Blog Post at Automotive.com

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Finding the 'Why' in Jaguar, Land Rover's Sale

Posted April 2 2008 09:33 AM by staff 
Filed under: Opinion, Ford


Now that the sale of Jaguar and Land Rover from Ford to Tata Motors of India has been made official, people are asking why such a sale was necessary.



handful of cash

Some pundits have isolated three possibilities. First, Ford had to stop the bleeding. Second, Ford was involved in too many brands. Third, Ford’s board has decided to concentrate on core markets.

In order to stop the bleeding, Ford has decided to concentrate on its key products and key markets. And that means more of an emphasis in the United States. Jaguar and Land Rover were a part of Ford’s Premier Automotive Group (PAG) along with Aston Martin and Volvo. Only Volvo remains with Ford. PAG, it is said, accounted for most of Ford’s losses in 2006.

In 2007 Jaguar and Land Rover showed some signs of coming back. It is being reported that Land Rover has actually contributed to the profit side for Ford. But Ford execs say that they need to concentrate on their core business. So, though there was some sign of improvement, the company was afraid that it would take its eyes off the prize, so to speak and lose focus on what their core business is.

Our take? So, Ford, wave bye, bye to Jaguar and Land Rover. Hey, how do you say “Hello” in Indian?


via What Car?










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