05 LS8
Dedicated LVC Member
I think there are two questions about Tata and Jag:
1 - How will Tata leverage Jag's technical knowledge to improve their original auto product and can they use it to make Tata a global car brand? This would be like Toyota buying Cadillac in 1957 and becoming a global car company by 1965.
2 - Will Tata invest enough in R&D to ensure Jag maintains their current presence? Can they replace what Ford did for them? Can they produce high quality parts?
I'm guessing 1 will happen, but they'll not quite make it because Toyota, Honda and Hyundai will maintain their lead on them.
2 is the BIG question for me. Tata is a massive operation, but they are also pretty well leveraged these days. And it seems like they need to make 1 happen before 2 can be done.
First and foremost, anything is possible. Tata is actually already a global car brand. It's just not very popular in United States. They aim at a specific demographics. They have been around since early to mid 1900s.
To answer your second question, they have the financial backing to do anything. Tata's CEO owns half the India - hotels etc.... I am sure if you were to follow the money stream, it all goes back to Dubai. So, money is not a problem.
Also, I don't see a reason for them to buy a brand like Jaguar and build cars with less quality incorporated into them.
I don't know what Jaguar's retention rate used to be, but give another year or two for the current models to get more exposure, their retention rate will improve by quite a bit.
DOH!!! You're right. MY MISTAKE!
It's still fun to poke fun!
LS4me, now it makes sense for me. I was under the impression you knew it was based in India. I got confused for a second, when you mentioned China. We are all clear now.