Comments on: Update: Tata and Jaguar/Rover

By: Hussey

Hussey — Sat, 27 Sep 2008 06:48:40 +0000

A new small Land Rover, based on the LRX concept-car displayed at car shows this year, seems certain to get the go-ahead, and Jaguar’s big saloon, the XJ, will be replaced next year with something sportier and more modern-looking.

By: Jim

Jim — Wed, 03 Sep 2008 15:08:40 +0000

I think TATA will succeed – here’s why…………….

I think perhaps one ‘factor’ may have been overlooked in your research (although you seemed to have really done your homework).

One factor, however, does not always show up in a spreadsheet.

The people factor – companies in Asian countries have an ingenuity and drive that today is often missing in American and European companies — you stated Can Tata right a ship that larger, more experienced, more formidable competitors had been unable to

Two quick points that perhaps will allow TATA to right the ship:

* They operate under unconventional (non-western) methodologies and maybe, just maybe they can right the ship using strategies not often entertained in the west.

* Look at all the technology that is sent off shore to India – they are hungry and know how to run lean and mean, not like the overstuffed corporate headquarters with all the bloated top heavy salaried officers. They are nimble and quick to adapt, etc…………..

What do you think?

Regards – Jim

PS: I realize that TATA is in the midst of a firestorm with NANO due to some farmers picketing the plant, but this too will be overcome by TATA’s expert management.

By: Robert Salomon

Robert Salomon — Wed, 03 Sep 2008 15:05:16 +0000

Ray,

Your point is well thought out and well articulated. I do not mean to come off as if the failure of LJR is fait accompli. In fact, I have seen the new Jaguar and LR models and I think that they are well-styled automobiles. So they probably have a fighting chance. However, as you point out, LR will struggle with fuel efficiency. I also think Jaguar will struggle to convince BMW, Audi, and Mercedes drivers to switch. Neither LR nor Jaguar is very cost competitive either. And then there’s the potential management problems.

But forced to put a probability on it – I’d say somewhere in the 20-30% chance of success for JLR.

By: Ray

Ray — Wed, 03 Sep 2008 06:56:32 +0000

I follow JLR quite closely and found the article interesting. I also felt it was too pessimistic, not because it could not happen, but because you seem to lean toward a failure as almost inevitable. The biggest risk to Land Rover is getting its emisions/fuel consumption down pronto and that is a big one. The LR2 will soon have a hybrid model on the market and the LRX will go well. The LR3 and Range Rovers are going to crash sales wise and only very differently designed replacements will have any hope. Jaguar sales are increasing and its prognosis is healthier than LR. Much will depend on the X-Type replacement. If it is a quality, tree hugging vehicle with style, then it will be a hit. If Jaguar gets that right, then it will do just fine.