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SA impact of Jag, Land Rover sale

2008-06-03 09:54
Land Rover

Tata has completed on Monday its $2.3bn acquisition of the Jaguar and Land Rover brands from Ford Motor Company.

Also on Monday South Africa's Competition Tribunal announced that it had unconditionally approved the acquisition of Jaguar and Land Rover.

It also follows confirmation that a consortium of 15 banks had completed the formalities for raising the $3bn to finance the acquisition and other debts.

At a media event for the South African media in Cape Town, Jaguar and Land Rover executives said that it is "business as usual". The local division will be known as Jaguar Land Rover South Africa (JLRSA).

The new division also told local media that the change of ownership will have no negative impact on Jaguar and Land Rover owners. Warranties and supplier agreements will also be honoured.

Company executives told Wheels24 that it is important for Tata to protect Jaguar and Land Rover's integrity. It is committed to grow the trusts in the brands. 

According to JLRSA the South African operations will operate independently and will be a completely separate entity under Tata Africa Holdings.

Furthermore the group said that there will be no significant changes to the business, its leadership or product development plans.

New premises

JLRSA will also move from Ford's head office in Silverton, Pretoria, to new premises in the Centurion/Pretoria area. As part of the split from Ford, Jaguar and Land Rover is moving their parts and accessories warehouse.

The company also emphasised that its operations at dealerships will be unaffected by the transfer of ownership.

Furthermore the group emphasised that there will be no shared facilities with Tata at either dealership or head office level. Tata is apparently also adamant to keep the Jaguar and Land Rover brands separate from its low-cost volume car production unit.

JLRSA also believes Tata will invest significantly in the two premium brands. The "Britishness" of Land Rover and Jaguar will also be unaffected and design, engineering and manufacturing won't be moved outside the UK.

The South African operations will also continue to report to Jaguar Land Rover in the United Kingdom.

Jaguar Land Rover will also not be incorporated into the Tata Cars division. It will be a separate business division under Tata Motor Holdings, which not only include Tata Cars but Tata Trucks & Bus.

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