Ford May Identify Preferred Bidder for Jaguar and Land Rover This Week

Will it be the favourite or a dark horse?

By Brendan Moore

12.16.2007

Ford has gotten far enough along in the sales process concerning Jaguar and Land Rover that it may name their preferred bidder later this week, The Wall Street Journal is reporting.

That preferred bidder is expected by auto industry analysts to be Tata, the huge Indian conglomerate that owns Tata Motors and 95 additional companies in other industrial sectors for combined annual sales of approximately $20 billion. Ford is refusing comment on the possibility of the preferred bidder being announced this week, as well as who that preferred bidder might be.

The road to a package deal that would allow Ford to sell both the ailing Jaguar and the healthy Land Rover to a single buyer has been a tortured one so far, with Ford proceeding slowly, and as much as possible, quietly, towards their goal of jettisoning the two European luxury vehicle companies. Ford’s CEO, Alan Mulally, is intent on selling the two Ford units so that struggling Ford can then concentrate on its core brands.

The short list of bidders was reported to be down to three companies recently; Tata, Mahindra and Mahindra/Apollo Management LP and a private equity firm led by former Ford CEO, Jac Nasser, One Equity Partners, a unit of J.P. Morgan Chase. Additionally, Ford’s labor union has made known its preference for Tata in the bidding process just recently as well.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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3 Comments

  1. I hope it is TATA. They’ll do a good job with it.

  2. The Jaguar dealers in the United States (I followed the link back to the previous post) are worrying over nothing. Jaguar’s problems have been stale product and uneven marketing. If they fix those problems, no one will care if they are owned by an Indian company.

  3. Nothing wrong with Tata at all. I agree wit reg o, they’ll do a good job with Jag and a great job with Land Rover.

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