Wednesday, March 26, 2008

India's Tata Motors acquires Jaguar, Land Rover for US$2.3b

Next time when you pass by Jaguar show room at Queenstown area, you may notice their logo may change to TATA as Tata motors has bought over Jaguar and Land Rover business. Ford used to manage these two's businesses and the deal is expected to be closed on June quarter. As we all know TATA group is very rich in terms of capitalisation. Based on their history from their website, The Tata Group is one of India's oldest, largest and most respected business conglomerates. The Group's businesses are spread over seven business sectors. It is not surprise that bigger firm will eat up all the smaller firms when their business is poor. That is the strategy of the smaller firms, waiting to be bought over by the big fish with some cash in. As we all know, Jaguar is not making sales progress and Land rover is just showing some progress recently, with the bought over, the target market may be different and the focus market will also be changed. India is a great place with many millionnaires. Jaguar is one of the favaurable brands among them. With such move, potentially there will be increase sales of the business in India and more importantly, quality must not be compromised to secure the sales.

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