Ratan Tata, the man and mover behind Tata motors, is doing a Meet the Parents tour with Jaguar's oldest and largest U.S. dealers. As the best businesspeople do, he is flying across the States to meet the men and women in charge of his newest brand. Incredibly, it is the first time he has ever stepped inside a Jaguar dealership.
Ratan has probably gone on the whistle-stop tour not only to get to know his dealers, but so his new partners could get a glimpse of the man they've all been wary of ever since Tata emerged as a front-running buyer for the brand. What were dealers telling him? They want they want a convertible sports car like the F-Type, a convertible XJ, and an even more upscale car to compete with Bentley.
Dealer reaction has been effusive. The head of Jaguar's dealer council -- who said India was no place for Jaguar -- reversed himself after meeting Tata, saying flat out, "I was wrong." And said Norm Aron, owner of a 55-year-old dealership in Illinois, "I'm telling you this: He's going to make something out of Jaguar. We're in good hands now." Score one for Mr. Tata, and please, Ratan, keep it up.
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.
It's nothing new to have automakers pushing suppliers to cut their component costs. For the past decade and a half, many companies have demanded suppliers provide price reductions of 3 to 5 percent a year, every year, with varying degrees of success. India's Tata Motors is taking these efforts to a whole new level. In order for Tata to build a new car with a retail price of only $2,500 they need component prices an order of magnitude cheaper than other cars. One example is airbags. While Tata wants the Nano to be a very basic car, it wants it to still meet safety standards. The problem is that frontal airbags cost about $150 each. At that level, a pair of airbags would account for more than 10 percent of the cost of the car, clearly a non-starter. As a result, Tata has asked occupant safety systems supplier Autoliv to develop airbags that cost only $10 each. How or if Autoliv will get down to that price point remains unclear. It seems that features like two-stage airbags and systems that detect the presence of a passenger to disable the bag if there is no one there will have to be left out. In any case, it'll be interesting to see if Autoliv and Tata can pull this one off.
Tata Motors, rumored to have been interested in purchasing a large chunk of Italian motorcycle maker MV Agusta, could have some competition. Another large Indian conglomerate, Mahindra & Mahindra may now be interested in a controlling stake in the storied company. According to India Automotive, the potential exists to gain instant traction in the global motorcycle market by picking up MV Agusta, and the Italian company could use the extra funds from a large and profitable company to release a new line of more competitive machines.
Volkswagen, are you paying attention to all of this? As we've previously reported, the German automaker has expressed interest in purchasing an established motorcycle brand, even going so far as to mention Ducati by name. MV Agusta would offer instant credibility and would be a rather easy entrance into the marketplace.
Up until today, there were no major automobile manufacturers taking part in the Progressive Insurance Automotive X Prize. That changes with Tata Motors signing a letter of intent to compete in both the Alternative and Mainstream classes. The Alternative Class allows for the use of fewer than four wheels, though Tata's intention is "to enter a pure e-drive micro car" in that class. The more relevant Mainstream Class requires four wheels, a two-hundred mile range and the equivalent of at least 100 miles per gallon from a package capable of carrying four passengers. For this class, Tata indicates that it will enter a Dominant Electric Hybrid vehicle. We're rather anxious to see what Tata is able to cook up for this eco-friendly competition, considering that whatever engineering goes into the development of its X Prize challengers can easily be applied to the production Nano, as well as Jaguar and Land Rover vehicles.
Volkswagen may not be the only auto manufacturer interesting in a storied Italian motorcycle maker. Hot on the heels of its purchase of Jaguar and Land Rover, rumors are swirling that Tata may be considering purchasing a stake in MV Agusta. According to a few Indian and Italian sources, Ratan Tata, chairman of the Tata Group, is reportedly in talks with Claudio Castiglioni, the man running the show at MV Agusta.
Tata's involvement with MV Agusta could inject a unique flavor to the Indian conglomerate's portfolio, which has already been boosted by its acquisition of the two aforementioned classic British marques. A healthy injection of cash could do wonders for MV Agusta as well, considering what it has already proven capable of even in its currently meager financial position.
For the time being, you have to live in India to buy a Tata Nano. The new people's car is slated for domestic consumption only for now, but that doesn't mean you can't unleash your inner Nano shopper. That's right, Tata's website now allows anyone to customize their own version of little fun-sized runabout. While the car's feature set is limited by necessity -- loading it up with options would run up the price, which would in turn defeat its purpose -- you can do a fair bit of personalization. The standard car gets brighter colors, while the ironically-named Luxury trim features more muted hues. From there, depending on the trim level, you can add foglamps, a number of wheel designs, and best of all -- decal packages! Throw on some racing stripes and crank up the IndiPop; 30-horsepower never looked so fast!
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.
