Comments on: Buyers Remorse: Will Tata Rue the Purchase of Jaguar and Land Rover? http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/ Sat, 06 Mar 2010 19:47:14 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: JJ Cale http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/comment-page-1/#comment-1072 JJ Cale Thu, 12 Feb 2009 18:13:08 +0000 http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/#comment-1072 http://online.wsj.com/article/SB123418423195163457.html http://online.wsj.com/article/SB123418423195163457.html

]]> By: Robert Salomon http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/comment-page-1/#comment-270 Robert Salomon Wed, 16 Apr 2008 13:52:01 +0000 http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/#comment-270 You both raise some interesting, and valid, considerations. I am not able to completely refute either, but will point out the following: Neale, it's unclear to me why they should be less of a cash drain on their current parents (Tata) than they were on their previous parents (Ford). As much as Tata may want the brands to succeed, no amount of want will change their tired designs and uncompetitive cost structure. It takes a tremendous amount of money to change the former, and lots of restructuring to do the latter (which the guarantees they provided prohibit). Patricia, I like your point about the Japanese auto manufacturers. It's true that they were able to successfully enter the luxury market after years of focus on small, efficient, inexpensive cars. However, the Japanese auto manufacturers (Toyota, Nissan, Honda) were able to extend their brands internally rather than rely on doing so through acquisition. Acquisitions in this arena (between upscale and downscale brands) are especially difficult to pull off. In this sense then, I see the Tata/Jaguar/Rover combination as more akin to the DaimlerChrysler union than the example of the Japanese manufacturers. Just my thoughts, ...but I certainly welcome your input. You both raise some interesting, and valid, considerations. I am not able to completely refute either, but will point out the following:

Neale, it’s unclear to me why they should be less of a cash drain on their current parents (Tata) than they were on their previous parents (Ford). As much as Tata may want the brands to succeed, no amount of want will change their tired designs and uncompetitive cost structure. It takes a tremendous amount of money to change the former, and lots of restructuring to do the latter (which the guarantees they provided prohibit).

Patricia, I like your point about the Japanese auto manufacturers. It’s true that they were able to successfully enter the luxury market after years of focus on small, efficient, inexpensive cars. However, the Japanese auto manufacturers (Toyota, Nissan, Honda) were able to extend their brands internally rather than rely on doing so through acquisition. Acquisitions in this arena (between upscale and downscale brands) are especially difficult to pull off. In this sense then, I see the Tata/Jaguar/Rover combination as more akin to the DaimlerChrysler union than the example of the Japanese manufacturers.

Just my thoughts, …but I certainly welcome your input.

]]> By: Patricia Hoeltge http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/comment-page-1/#comment-266 Patricia Hoeltge Wed, 16 Apr 2008 02:09:21 +0000 http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/#comment-266 My view is that this is a cycle that we have seen before decades ago in Japan where Japanese carmakers were know for small efficient inexpensive cars and then took on the challenge of making luxury sedans and have succeeded. By giving these two upscale well positioned brands a chance to motivate their companies to achieve their bests with the onset of new models to show the world that they truly are world class and ultimately will get Tata to increase their global reach and scale. I welcome your thoughts. My view is that this is a cycle that we have seen before decades ago in Japan where Japanese carmakers were know for small efficient inexpensive cars and then took on the challenge of making luxury sedans and have succeeded. By giving these two upscale well positioned brands a chance to motivate their companies to achieve their bests with the onset of new models to show the world that they truly are world class and ultimately will get Tata to increase their global reach and scale. I welcome your thoughts.

]]> By: Neale Webb http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/comment-page-1/#comment-248 Neale Webb Tue, 01 Apr 2008 01:55:35 +0000 http://blog.robertsalomon.com/2008/03/31/buyers-remorse-will-tata-rue-the-purchase-of-jaguar-and-land-rover/#comment-248 There is an important factor I believe you may have overlooked or, at least, not given sufficient weight: Tata cares about Jaguar and Land Rover. They really want the brands to succeed for the sake of the brands themselves. I do not believe a soul-less giant like Ford would have had the same sensitivity. The same dedicated, enthusiastic people will be building and designing these cars and the marketing is already on-target - I see the sale to Tata as the brands now about to receive the care and attention their respective breeding deserves. There is an important factor I believe you may have overlooked or, at least, not given sufficient weight: Tata cares about Jaguar and Land Rover. They really want the brands to succeed for the sake of the brands themselves. I do not believe a soul-less giant like Ford would have had the same sensitivity. The same dedicated, enthusiastic people will be building and designing these cars and the marketing is already on-target – I see the sale to Tata as the brands now about to receive the care and attention their respective breeding deserves.

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