Why did Ratan Tata bought Jaguar and land Rover from Ford ?

"You do not know anything, why did you start the passenger car division at all?" - This were the lines of the Chairman of Ford Motors-Bill Ford against Ratan Tata.


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Ratan Tata Jaguar Land-Rover – Back in 1999, just 1 year after launching the first car in the Indian market, Tata Motors was having trouble shifting units of the Indica hatchback, which was launched in 1998. Seeking help, Ratan Tata, with his team traveled to Detroit to sell their passenger car business to Ford, who had pretended interest.

Despite this 3-hour long meeting with Ford executives didn’t go too well, the team had to go up with a lot of humiliation at that time. The Ford executives even went on to say that they would be doing Tata Motors a favor by buying their passenger car division.

Jaguar Land-RoverJaguar Land-Rover

“You do not know anything, why did you start the passenger car division at all?” – This was the line of the Chairman of Ford Motors-Bill Ford against Ratan Tata.

Ratan Tata, reasonably humiliated, left the room without finalizing the deal, and flew back to New York with his team that very evening. Throughout the 90 minute flight to NY, Ratan Tata, then the group chairman, was visibly dull.

After earlier failures, Tata Motors did well with its business of passenger cars but in the same period, Ford did very bad.

In 2008, when Ford was on its way of bankruptcy, Tata Group offered Ford to buy its luxury car brand, Jaguar-Land Rover.

Bill Ford, along with his team, reached “Bombay House”. “Bombay House” is the headquarter of the Tata Group. The deal was finalized for 2.3 billion US $, which amounted to 9300 crore Indian Rupees at that time.

Ford was incurring heavy losses from Jaguar – Land Rover division

A wave of sweet revenge wafted in the air, when Ford chairman Bill Ford, post the acquisition, thanked Tata, saying you are doing us a big favor by buying JLR”.

Today Jaguar Land Rover, now owned by Tata Group and is currently a profitable division of Tata Motors.

Share this story with your friends who would be amazed to know about it.

Also read:-10 Amazing facts about Ratan Tata that might surprise you


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Vikas Rawte

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