Yesterday, Ford Motor Company announced the sale of its Jaguar and Land Rover (JLR) brands to Tata Motors for $2.3 US billion (€1.5 billion, £1.2 billion). Ford will continue to supply JLR with powertrains, other components and environmental and platform technologies.
Emissions Regulations
The current fleet at both Jaguar and Land Rover will need major
investments to adapt to forthcoming European regulations. The
exact terms of the forthcoming CO2 emissions legislation for
Europe are yet to be finalized, but we believe that the system will
run on a fleet average principle. This is significant, since under new
ownership JLR will no longer be classified under Ford of Europe.
Tata is targeting increased sales in Europe from 2012 and these
will be crucial to offset the Jaguar and Land Rover emissions.
Marketing
The recent launch of the Nano “One-Lakh” vehicle and JLR deal
raises the profile of the Indian manufacturer considerably. This
is expected to facilitate the introduction of a version of the Nano
into global markets, while the JLR product range is expected to
be exploited to establish Tata in growing markets like China and
Russia.
For questions, please contact
Andrew Wright,
Senior Market Analyst, European Vehicle Forecasts,
at +44 1932 349 661 or andrewwright@csmauto.com
or Neeraj Bandhu,
Director, India Forecasts,
at +91 987 333 4980 or neerajbandhu@csmauto.com.
