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Created: 01/03/2008 09:51:19 AM - Followers: 1 - Board type: Free - Posts Today: 0
Land Rover and Jaguar acquisition from Ford Motor Co. No shares AS or OS on pink sheets. Grey sheet with limited information. No real prior trading activity. Dollar amount of acquisition not available. Tata Motors, Mahindra & Mahindra Bid for Ford Brands posted on: December 21, 2007 Reports have been circulating lately that two Indian conglomerates are biding for U.K premium auto brands Jaguar and Land Rover (both owned by Ford (F). Tata Motors (TTM), India's largest private sector group with 98 companies, and Mahindra & Mahindra [M&M] (MAHMF.PK), one of the top manufacturers of farm equipment in the world, have shown interest in biding for the brands. Jaguar and Land Rover labor union leaders in U.K have publicly endorsed the bid by Tata Group. Birmingham Post just ran article declaring that Tata has won the biding at 1 billion pounds ($2 billion). By most accounts these brands are not exactly selling like Mustangs (2007 data shows that year over year Jaguar sales plunged 27% and Land Rover sales increased 7.6%). Any company that owns just these brands in western markets are going to be under heavy pressure to reduce emissions based on a new European Union regulation in the offing. M&M has no compact or mid size cars in the European and US markets. Tata does sell few compacts in Europe. Having compact and mid size cars in the fleet would help a company meet its average fuel efficiency goals set by US and European regulators. As Ford promised to the local union leaders and government, any deal would likely include restrictions on job reduction in U.K, preventing Indian owners from moving manufacturing to India in the near future to reduce costs. So why would an Indian company spend $2 billion on a deal on the surface looks like a loosing proposition? Indian groups are looking for a short route to obtaining three things they need to enter western markets and compete with global brands in the home market: Technology, Brand and Credibility. For Tata and M&M to be taken seriously in the western market, obtaining latest automotive design and manufacturing technology is a must. Both the companies also need to be able to fend off all the international players entering the home market including Ford. Both of these require their R&D labs to be up to par with the rest of the industry. Both Indian manufactures have no western presence to speak of. M&M have long been exporting its farm vehicles to the developing world and recently announced plans to ship its SUV to US. Tatas have been exporting to developing countries as well as Europe for some time, but none of their brands are well known. They need the power of well known brand(s) to gain credibility with the consumers. If the Tata Motors can capitalize on all these factors to enter into western markets and fend of other international players in the home market, this deal will be worth it even if it can't turn around the declining sales of the brands. Raj Dhamodharan
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#31 As a Roxor owner and seeing the popularity Glider549 07/12/2019 02:39:24 AM
#30 I think the market is Dubai nkdroth 01/15/2008 10:33:47 AM
#29 yep yep yep nkdroth 01/06/2008 09:40:10 AM
#28 I forgot now. I don't remember what I WayneC777 01/05/2008 09:14:33 PM
#27 email whAT? IPO$ 01/05/2008 09:04:13 PM
#26 WOW...I wich I knew how many shares OS IPO$ 01/05/2008 09:03:48 PM
#25 BY TIM HIGGINS IPO$ 01/05/2008 09:03:10 PM
#24 nkdroth 01/05/2008 08:56:05 PM
#23 I have tried the Indian small caps site nkdroth 01/04/2008 11:45:32 AM
#22 IPO$ - can you email me WayneC777 01/04/2008 11:45:05 AM
#21 Oh I see. I wish MM would publish IPO$ 01/04/2008 11:41:32 AM
#20 NO with a car for $2500 nkdroth 01/04/2008 11:40:35 AM
#19 R/S 2500 to 1? The PPS is already IPO$ 01/04/2008 11:39:53 AM
#18 Plastic I think M&M is coming out nkdroth 01/04/2008 11:39:00 AM
#17 a plastic car? how could they make it IPO$ 01/04/2008 10:00:46 AM
#16 nkdroth 01/04/2008 09:02:08 AM
#15 not sure IPO$ 01/03/2008 03:05:53 PM
#14 Or are you saying there is news of nkdroth 01/03/2008 01:59:26 PM
#13 AS you can see from nkdroth 01/03/2008 01:50:52 PM
#12 Is this a puzzle or an enigma ??? Lol nkdroth 01/03/2008 01:42:40 PM
#11 The investment group at which Jacques Nasser is IPO$ 01/03/2008 01:37:47 PM
#10 they probably did a big R/S IPO$ 01/03/2008 01:16:26 PM
#9 It looks to me like the symbol was nkdroth 01/03/2008 12:25:30 PM
#8 T/A does not show on ponk sheets unless IPO$ 01/03/2008 11:55:30 AM
#7 I wish I knew how many shares OS IPO$ 01/03/2008 11:55:08 AM
#6 cool... IPO$ 01/03/2008 11:53:25 AM
#5 nkdroth 01/03/2008 11:15:18 AM
#4 hmmmmmm. thanks for the message. Bull Trader 01/03/2008 11:02:22 AM
#3 We just finished (all woodwork) a Land Rover pennyhungry 01/03/2008 10:58:27 AM
#2 I'll look into it... nkdroth 01/03/2008 10:45:59 AM
#1 Welcome! IPO$ 01/03/2008 09:51:38 AM
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