Jaguar Land Rover is the largest automobile manufacturer in the UK. They followed British invention, craftsmanship, and invention to market all over the globe.
Let’s have a look at the case study of Jaguar Land Rover.
History of Jaguar Land Rover
Ford Motor Corporation developed the two popular companies Jaguar and Land Rover in 1989. Land Rover is a British automobile factory that is popular for manufacturing four-wheel drive‚ vehicles. The name began with a single car that was designated by the Rover company as Land Rover in 1948. After the expansion, they became a niche for different kinds of four-wheel drive prototypes like Discovery, Range Rover, Defender, and Freelander. The company has received a lot of ownership in its entire history. Leyland Motor Corporation gripped the Rover company in 1967. Leyland after this created a union with British Motor Holdings and created British Leyland. The recent firm was launched in the 1980s but British Aerospace bought the Land Rover or Rover Group in 1988. BMW took up the Rover Group in 1994 but the union broke down in 2000 and then Ford Motor Company acquired the Rover Group. Then in 2008 Tata Motors bought Land Rover 2008 along with Jaguar automobiles.
Jaguar Cars Ltd or Jaguar is a British luxury automobile producer which is headquartered in Coventry UK. The firm was set up as Swallow Sidecar Company in 1922 that only manufactured motorcycle sidecars and later passenger cars. Soon after the Second World War, the SS’ purposes were not favorable and then they changed the name to Jaguar. The name became Leylands and after that British Leyland in 1984 while it was recorded in the London Stock Exchange.
Acquisition of Jaguar and Land Rover by Tata Motors
A world-famous company, the Ford Motor Company, announced the biggest annual loss in the history of the building of the company since 1903. It was considered to be the third largest automobile manufacturer in the world assessing the car sales all over the globe.
According to the reports of the company, the amount of the loss was nearly $12.8 billion. The company also declared that it will not be able to come back to profitability until 2009. According to Ford, the primary reason behind the sale of Jaguar and Land Rover was the vulnerable economy. The two companies were encountering losses for which they had to shut down several manufacturing factories and cut the workforce heavily.
Tata Motors Limited stood beside Jaguar and Land Rover. They decided to make acquisitions of the two companies. There were various reasons why Tata Motors Limited did that. Firstly, with the help of the deal, the company will be able to acquire a worldwide impression and also enter a respected part of the global motor car market. Soon after this contract Tata Motors received the most reasonable automobile in the globe The Nano going about 2500 and several costliest and most luxurious automobiles like Land Rover and the Jaguar. Though there were a few doubts about the deal as Tata was an India-based firm that was going to show the amenity brands, ownership should not be a significant problem in terms of deals, benefits, and commerce. Tata Motors will be able to be a significant performer in the enterprise after they acquired Jaguar and Land Rover both of which have multinational existence and also a fair reputation in terms of successful companies.
The contract would also help Tata Motors in cutting down the reliance of the firm to the market of India which was at 90% of the sales of the firm before the deal. That is why it is obvious that the company will get a lot of benefits from the acquisition as the market of the company will be spread to every nook and corner of the world. Customer segments will also rise due to this deal.
There was a chance of improved economies of scale which in turn advertises the cost effectiveness. Truly speaking the deal will come to be a union of three distinct firms that have already gone into the market and as a consequence, the new company that will be built after the deal will have improved function ranking. This implies that the result exhibition will increase and as a consequence, the expense per unit production will be decreased incredibly.
Tata Motors Limited anticipated that after the acquisition of the two companies it will be able to have an exclusive line of products varying from the most inexpensive to the most pricey automobiles in the market. The company became popular in the Indian market in both low and middle-class market parts.
The culture of a company plays a very important role in the performance of the company. It is very important to change or adapt the culture from time to time to survive in the market flawlessly. Culture helps a company to meet its objectives. Jaguar strived its best to survive in the market. If you want to know more about this you may get in touch with My Assignment Writing Help.
- What is the story behind Jaguar?
Jaguar was established as the Swallow Sidecar Company in 1922 as a firm that created motorcycle sidecars. The industry expanded to developing passenger cars under S.S. Cars Limited, which transformed its name to Jaguar Cars in 1945.
- Why did Tata take over Jaguar Land Rover?
Tata purchased Jaguar and Land Rover in every cash transaction of $2.3 billion from Ford in June 2008. The company spent nearly half of what Ford Motor spent for achieving the two companies. At that time the retro designs of JLR were becoming obsolete and it competed with the new diesel engines.
- What is the goal of Jaguar?
Jaguar wanted to provide the best quality work and produce the best cars, services, and products.