Jag, Land Rover talks focused [Archive] - Ford Inside News Community

: Jag, Land Rover talks focused

01-17-2008, 03:19 PM
The sale of Jaguar and Land Rover is less about raising cash -- Ford is reportedly offering them up for a measly $2 billion -- and more about eliminating their drag on its bottom line. Jaguar is a huge money-loser, and while Land Rover's record profits effectively cancel that out, both brands will require substantial new investments to remain on course.

Moreover, Ford CEO Alan Mulally views them as a distraction; he wants all of his global leadership team to focus on fixing Ford.

But untangling Jaguar and Land Rover from the rest of Ford is likely to take some time.

One reason is powertrains.

Most of the engines used in Jaguars and Land Rovers are designed and manufactured by Ford. Some come from Germany, but most are produced at two Ford factories in Britain -- Bridgend Engine Plant in Wales and Dagenham Engine Plant in Essex.

Sources say Ford wants Tata to continue purchasing engines from those factories so that it can recoup its investment in those plants. Tata reportedly has no problem with that in the near-term, but ultimately wants to be able to produce its own.

To make sure that it can, Tata is asking Ford to include some of its European engineering staff in the deal. But the Dearborn automaker is loath to give up good engineers -- let alone send them to work for a competitor

more at the link (http://www.detnews.com/apps/pbcs.dll/article?AID=/20080117/AUTO01/801170343)

01-18-2008, 11:04 AM
Thanks for this. It certainly clarifies the reasons for what seems a very protracted delay. And I have to agree with Fords reported point of view.

There is no mention in any of this about Ford retaining any interest in J/LR.