Jaguar is now an Indian beast
Times of India — March 27, 2008

So what if the Kohinoor diamond - once the ultimate symbol of Indian wealth and power - now resides with the Queen of England?

On Wednesday evening, icons of British luxury, Jaguar and Land Rover, passed into Indian hands for £1.15 billion ($2.3 billion).

(Watch: Tata acquires Jaguar, Land Rover)

The event was marked by a clinical note issued by Tata Motors from its headquarters in Mumbai. The irony of it all wasn't lost in either India or the UK.

With $104 billion, India is now the second largest source of foreign investment into Britain. And it took a company from a former colony to come to the rescue of a beleaguered British brand.

In contrast to the high drama that preceded Tata Steel's acquisition of Corus last year, this transaction was a relatively tame affair.

Soon after Ford Motor Company - American owners of the brands for the last 18 years - put the brands on the block, the Tatas, Mahindra & Mahindra and Jacques Nasser, former CEO of Ford, expressed interest.

Mahindra and Nasser backed out after Ford and worker unions at the company indicated they were comfortable with the Tatas. What followed after that was only the wrangling over detail.

For instance, Ford Motor Finance will continue to finance buyers across the world looking at acquiring Jaguar or Land Rover products for the next 12 months.

Then there is the fact that Ford will continue to supply key technology and components to both brands for some time to come.

In a hurriedly organized conference call, Ravi Kant, MD, Tata Motors said the existing management at Jaguar and Land Rover would be retained.

And that Geoff Polites, the current CEO at both companies, has agreed to continue in his existing role. He also reiterated there would be no job cuts at the manufacturing facilities in the UK and that it would be business as usual.

But motoring analysts remain sceptical of Tata Motors' ability to restore the brands to their former glory.