Whenever there's auto industry-related lobbying going on in Washington D.C., the Alliance of Automobile Manufacturers is there. Consisting of eleven automakers representing 77 percent of all vehicle sales in the United States, the Auto Alliance has a "role in shaping meaningful public policy on the federal, state and even global levels," according to President and CEO Dave McCurdy. The newest member of the Alliance is Jaguar Land Rover, representing the two brands that were recently sold by Ford Motor Company to Tata Motors. With the addition of the Indian-owned, British-based automaker, the membership now consists of BMW Group, Chrysler, Ford Motor Company, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi Motors, Porsche, Toyota and Volkswagen.
It looks as if Ford is finally putting a fork in the sale of Jaguar and Land Rover to Tata Motors... it's done. According to a statement from Ford, which can be read after the break, the sale of the two British automakers has been officially finalized as of today. Ford also wishes the best for its recently departed companies and their employees. Awww, isn't that sweet? We're glad we can all still be friends.
At Jaguar Land Rover, things seem to be business as usual. The company has announced that its new proud papa, Tata Motors, has named former CFO David Smith the new CEO for Jaguar and Land Rover. You may recall the untimely death of Geoff Polites, the company's previous CEO. Today's announcement of Smith's new appointment comes right on schedule based on past information provided by the company. Smith has already been the acting CEO since Polites' death late last April.
With the cash-infusion that Jaguar and Land Rover are getting from their recent acquisition by Tata Motors, hybrid vehicle development for the two brands is now underway. Indeed, production hybrid vehicles are expected within the next five years. A three-liter liter diesel six cylinder engine, an enlarged version of the current 2.7 liter, and a new five-liter direct injected V8 will be used for these planned hybrids. While JLR knows it wants a hybrid, the exact system for development is still under debate. Mercedes plans to use a new transmission from supplier ZF for its upcoming S-Class, and Jaguar is said to be considering this unit as well. According to Autocar, another option for Land Rover is known internally as the 'Electric Rear Axle Drive' electric motor.
Both Jaguar and Land Rover have recently received government funding for the development of eco-friendly technologies, and much of the work for the upcoming hybrids is expected to be completed as part of these initiatives.
Still mourning the untimely passing of CEO Geoff Polites, Jaguar and Land Rover have been managed in the interim by chief financial officer David Smith. But as the British automakers transition ownership from Ford to Indian automaker Tata, the twin companies are preparing to name a new chief executive.
Since initially announcing the deal, Tata has reiterated that it wanted to retain as much of the current management as possible. However, many of the jobs that were once managed by Ford and its Premier Auto Group, under which Jaguar and Land Rover fell, will need to be filled. As a result, the automakers are reportedly recruiting externally for several senior positions. Whether Tata ultimately decides to promote from within or hire a new chief executive from outside the company remains to be seen, but an announcement is expected as early as June 2.
What a world we live in when an Indian company needs US government approval to buy two British companies. No sweat off of Tata's brow, though, as federal antitrust regulators cleared the sale of Jaguar and Land Rover, which Ford is selling to the Indian automaker. The transaction was reviewed by the US Federal Trade Commission to ensure no antitrust issues would arise, but the procedural review ultimately yielded no cause to block the sale. Congratulations, Tata.
Tata may have spent a huge sum of money in the acquisition of Jaguar and Land Rover from Ford's Premier Automotive Group, but that won't stop the Indian automaker from approving funding for new projects for its newly-acquired babies.
Among the new vehicles for which Tata has reportedly already given the green light are the Jaguar XE and Land Rover LRX. As we previously reported, the sports car known internally as the XE or F-Type will target the likes of the Porsche 911 and face competition from the upcoming Maserati sportscar in 2012 when it is anticipated to hit the market. Around the same time, Land Rover is expected to bring the LRX to market and produce the sporty ute at Land Rover's plant in Halewood, England. Despite the shift in ownership, the vehicles are tipped to still be produced in the UK, although a large government contract to supply India's armed forces with Land Rover Defenders could result in local manufacturing of that utility vehicle on the subcontinent.
While most of the automotive press is reporting on Tata's acquisition of Jaguar and Land Rover from Ford's Premier Automotive Group, the fine print shows that the Indian automaker got a whole package of classic British marques to go along with them. In addition to Jaguar and Land Rover, Tata also acquired the rights to use the names of Rover, Daimler and Lanchester.
The Rover name previously belonged to BMW, which bought the Rover group 14 years ago. Although Shanghai (SAIC) bought the rights to produce Rover products, BMW refused to license the name to them (leaving SAIC to label its cars Roewe), instead selling it to Ford who secured the name to avoid confusion with Land Rover. The Daimler name, through an age-old licensing agreement with the Mercedes parent company, is used by Jaguar for a line of even more luxurious versions of its XJ sedan range. The Lanchester name is likewise attached to Jaguar, but having produced its first motor car in 1895, has laid dormant since 1956.
Although the three brands are barely in use, they transfer ownership to Tata along with Jaguar and Land Rover. The option will remain Tata's whether or not to utilize the names, but we wouldn't expect the Indian auto giant to lay out the cash to launch additional brands while it shoulders the financial burden of the $2.3 billion acquisition. We wouldn't be surprised, however, to see Tata license any of the names it can to help raise the funds.
With the sale of Jaguar and Land Rover really, truly official, it hasn't taken long for every automotive news outlet to come out with its own take on the future of both storied marques.
Autoweek distilled Jaguar and Land Rover's product offerings over the next eight years into about 800 words, beginning with the 2009 Jaguar XFR and XKR. According to its sources, both of these high-performance cats will be powered by all-new 5.0-liter, direct-injected V8s, with the naturally aspirated version producing 380 hp and the supercharged variant knocking on the 500 hp ceiling. Jag is expected to fit the new ZF seven-speed automatic 'box to both models, while the Range Rover and Range Rover Sport will get a mild facelift and benefit from the duo of upgraded powerplants.
Come 2010, the Jag XJ will get an XF-inspired facelift, but will still maintain its regal lines and luxo-cruiser status. The X-type will finally meet its timely demise, while the LR3 will get a nip and a tuck along with the aforementioned 380-hp, 5.0-liter DI V8. By 2011, the LRX will make its production debut, with a possible hybrid version coming later in its lifecycle, along with a seven-seat variant in 2012. That same year, Tata is hoping to release a successor to the F-Type. Based off either the XF or XK platform, the two-seat sports car may finally realize the concept that we saw back in 2000. After that, it's all about refreshes and new variations, including an XF coupe, a new Range Rover that will be chock full of luxuries and carrying a hefty price tag ($200k?!), along with all-new versions of the XF, XJ, Range Rover, and finally, a seriously revised Defender that could underpin the next LR3.
Ford has issued a press release confirming that it has sold both Jaguar and Land Rover to Tata Motors for an approximate price of $2.3 billion, which comes under some numbers as high as $2.65 billion that were being tossed around yesterday. The rumor that Ford will contribute to pension funds associated with the brands is also true, as it confirmed that $600 million will be dropped into the retirement coffers of the brands once the deal closes. It is, of course, subject to regulatory approval in a number of countries, but the automaker expects the deal to be done by the end of the following quarter. As part of the deal, Ford will continue to supply powertrains, stampings and other unnamed vehicle components to Tata for "differing periods", as well as R&D research, environmental and platform technologies, and even accounting services, among others. Clearly the ties that bind Jaguar Land Rover to Ford are strong and will take some time to undo. Judging from the press release, it seems all parties involved, including the employees of Jaguar Land Rover, are pleased with how the deal went down, and for the time being both brands will be run business as usual during the transition period.
According to Automotive News, the deal is done. Today Ford signed a deal with India-based Tata Motors to sell its Jaguar and Land Rover brands for over $2 billion. Ford will supposedly announce the deal officially tomorrow (Wednesday), but sources close to the transaction say the receipt's already been printed, so to speak. While details are scarce, AN does mention that Ford will pump around $598 million into the pension funds for each brand as it sends them on their way. We're waiting to hear more details about how Ford will continue to supply engines and components for these vehicles, for how long and how much. Right now, however, mum's the word, as the Blue Oval has only said that, "our first responsibility is to communicate with our employees." Sorry if they heard it here first, but then again, they should be working now, not reading Autoblog. Right? Right.
