Remember back in 2008 when Tata Motors of India acquired Jaguar and Land Rover from the Ford Motor Company?
While it was considered a bold move that brought the company recognition on the international stage, it also brought some ridicule because Jaguar and Land Rover were losing money for Ford. The deal cost Tata $2.5 billion and it took place about the time of the start of the Great Recession.
Well, guess what? Jaguar Land Rover is making a profit and not just a modest increase in sales for 2009. The two companies recorded a 47 percent rise in sales which fetched them $5.65 billion and a profit of $141 million compared to a loss of $565 million the year before. Analysts with such firms as Morgan Stanley are calling the turnaround “significant.”
Recently Tata named Carl-Peter Forster CEO of the division. He had been the head of General Motors in Europe.
Our take? Perhaps soon someone will tell us how they did it.
via Business Week
Most Active