December 03, 2008

JLR suppliers happy with TATA acquisition

It is reported that auto component suppliers to Jaguar and Land Rover are happy with the TATA Group at the wheel of the UK luxury car brands.

BBC quoted Mr John White of IM Kelly Automotive as saying that he is happy because TATA was successful with every single thing that they do. IM Kelly automotive supplies interior trims and finishing for Jaguar and Land Rover.

It also quoted Mr Geoff Bayton director motor component supplies of B squared as saying that initially, there were worries on account of different consortiums that were looking to get involved, but the take over by the TATAs gives them a good feeling and has given the workforces a lot of confidence.

Coventry Telegraph hailed the acquisition as great news for workers across Coventry and Warwickshire, saying that the deal was welcomed by workers, trade unions, business leaders and local suppliers alike. It said that the acquisition secures the jobs of thousands of workers in Coventry and at Gaydon in south Warwickshire.

Jaguar had been a loss making brand for Ford ever since it was brought by US auto giant in 1989. Jaguar's sales have declined by 25% during February 2008 as compared to February 2007. In the US, its key market, year on year sales were down by over a third compared to sales figures from February 2007.

Though Land Rover was profitable, its waning sales graph did not work in its favor when the time came for Ford to decide whether to jettison the brand. Land Rover's sales in the United States were down by 10% and European sales down by 12% compared to its sales figures from a year ago in 2007.