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Leaked information suggests a sale of struggling Jaguar Land Rover to French car group PSA could be imminent. It is understood a 'post-sale integration document', which outlines the benefits of the two companies joining forces, is already in circulation and the firms are exploring the detail of cost savings after a tie-up. But Tata denied the report, which cited sources referring to an internal 'post-sale integration document' describing cost savings. A spokesman for PSA - owner of Peugeot, Citroen and Vauxhall - told the Press Association that the firm was in 'no hurry' to make acquisitions and could 'stand alone'.
In January Jaguar Land Rover announced it was to make 4,500 job cuts, mainly in the UK. Jaguar Land Rover became the UK's largest car manufacturer in 2016 but sales have declined precipitously in china in the last year, previously the firm's biggest market. Left: the Jaguar Land Rover site in Halewood, Knowsley, Merseyside. Top right: a Jaguar E-Type Series 1 Roadster introduced 1961 – 1998. Inset: a PSA logo. Bottom right: The Queen and Prince Philip in a Land Rover on a Commonwealth visit to Australia, 1954.
'As a matter of policy, we do not comment on media speculation, but we can confirm there is no truth to these rumours,' said a spokesperson for the Indian carmaker, which owns 100 per cent of JLR.
Jaguar Land Rover has been struggling in recent months, making redundancies across its business and cutting back production at its plants.
In January Jaguar Land Rover announced it was to make 4,500 job cuts, mainly in the UK, following 1500 job losses last year.
The PSA deal would raise fears of cuts production in the UK and further job losses - another major blow to Britain's flagging car industry.
PSA shares jumped after the publication of the documents, before falling back after Tata released its statement, and were down 2.85 per cent as of 2.31pm GMT.
'On principle, we are open to opportunities that could create long-term value for PSA Group and its shareholders,' said Alain Le Gouguec, a spokesman for the Paris-based manufacturer.
PSA is setting new profitability records even as it continues to integrate Opel/Vauxhall, acquired from General Motors in 2017, and has previously signalled openness to further acquisitions.
The relative fuel-efficiency of its vehicle technologies is a valuable asset as carmakers battle to meet tougher European emissions targets and avoid huge fines.
Jaguar Land Rover has been struggling in recent months, making redundancies across its business and cutting back production at its plants. Pictured, a Jaguar E-Type Series 1 Roadster introduced 1961 - 1998
In 1951 Land Rover was handed a Royal Warrant by King George V11, and over the generations many of the Royals been transported in the vehicles. Pictured, The Queen and Prince Philip in a Land Rover on a Commonwealth visit to Australia, 1954
Jaguar Land Rover has been struggling in recent months, making redundancies across its business and cutting back production at its plants. A Jaguar and Land Rover are pictured at a show in Los Angeles
JLR, by contrast, faces one of the toughest challenges to comply with looming carbon dioxide goals - compounded by the uncertainty and disruption of Britain's protracted departure from the European Union.
Tata posted a record $4 billion loss for its fiscal third quarter ended Dec. 31, and warned that JLR would swing to an operating loss in the full year to March.
A spokesman for PSA- told the Press Association that the firm was in 'no hurry' to make acquisitions and could 'stand alone'.
However Pierre-Olivier Salmon added: 'If an opportunity comes, like Opel (Vauxhall), we will consider it.'
Jaguar Land Rover became the UK's largest car manufacturer in 2016 but sales have declined precipitously in china in the last year.
Sale in China dropped 44 per cent between July and September last year - turning China from its biggest sales market to its smallest.
Today Prince Harry beceme the first person to enjoy a sneak-peek at Land Rover’s long-awaited next generation Land Rover Defender with Dutch Invictus Games medal winner Jack Pastora
Jaguar Land Rover became the UK's largest car manufacturer in 2016 but sales have declined precipitously in china in the last year, previously the firm's biggest market
The company pointed to a downturn in China as a reason for the job losses and lower demand for the diesels which make up most of its products.
In the UK, 'continuing uncertainty related to Brexit' was blamed.
In February, it revealed a hefty quarterly loss of £273m in the three months to December 31, 2018.
PSA, meanwhile, has been flourishing since it bought Vauxhall-Opel in 2017.
It has returned the struggling brand to profit in less than two years and is cash-rich with revenue up 18.9 per cent in 2018 to £63.7m.
PSA chairman Carlos Tavares has made no secret of his desire to acquire the UK-based luxury car manufacturer.
Jaguar Land Rover pointed to a downturn in China as a reason for the job losses and lower demand for the diesels which make up most of its products. Picture shows a Range Rover Jaguar and Land Rover Special VIP Preview, Los Angeles
During an interview with Autocar India in April, he said he believed it would be good for PSA to have a luxury brand and that the company was 'considering all opportunities'.
Sources inside JLR have told the Press Association that despite public statements downplaying the prospects of a tie-up, 'things are moving quickly behind closed doors'.
One insider, who has seen the integration paperwork, said: 'To have a document like this in circulation at the two firms points to the fact things are very far down the line with either a sale or acquisition.
'Just look at how close the two firms are in the UK - the two head offices in Coventry and Gaydon are just 25 miles apart and both firms make cars in the UK.
'There are plenty of ways the two companies could save money by working together.'
Automotive industry expert Professor David Bailey of the Birmingham Business School believes the tie-up could be a good fit for both brands.
The Tata Motors owned firm has been a target of PSA, owner of Peugeot, Citroen and Vauxhall, for several months
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He said: 'PSA said last month it was interested in acquiring JLR but [its owner] Tata publicly ruled out a sale.
'Tata shareholders' patience may be wearing thin, though, given recent JLR losses. A partial sale may be an option.
'I'm sceptical about JLR being able to go it alone bearing in mind the need for very high research and development spend on new technology given that the auto industry will transform itself in the coming years towards connected, autonomous electric cars.
'At some point JLR may have to collaborate with another auto firm. A partial PSA stake might open that up.'
In February shares in India's Tata Motors sank by almost 30 percent after problems at Jaguar Land Rover unit dragged the luxury carmaker to India's biggest quarterly loss.
It announced a net loss of around £2.9 million for the quarter ending December owing to a $3.9-billion loss on JLR.
That compared to a profit of £132,000 loss for the same period a year before.
In late April JLR said it will build the next generation of Land Rover’s 4x4 Defender in Slovakia rather than Britain. The decision to build the iconic British car abroad was a bitter blow to many.
Today Prince Harry became the first person to enjoy a sneak-peek at Land Rover’s long-awaited next generation Land Rover Defender in the Netherlands.
The history of Jaguar and Land Rover, two iconic British icons
Both Jaguar and Land Rover are iconic British brands who have been producing vehicles for nearly 100 years.
The origins of Jaguar can be traced back to The Swallow Sidecar Company which began making motorcycle sidecars in 1922.
The Swallow Sidecar Company moved into car manufacture, and switched its name to Jaguar after the Second World War.
It produced premium saloons and sports cars, including the legendary XK120.
The Land Rover is regarded as a British icon and first went into production in 1948. The 1972 Range Rover generation 1 is pictured
In 1948, Range Rover started to develop a new all-terrain vehicle, inspired by the American Jeep.
Rover Managing Director Spencer Wilks had a plan to revive the company’s flagging sales in the post-war market. He tasked his brother Maurice - who was Rover chief designer at the time - to create a vehicle designed primarily for agricultural use which would help bring in much needed income until the luxury car market picked up again.
Lightweight and rustproof, the Land Rover Series 1 was clad in aluminium alloy, due to the post-war steel shortage, and cost £450.
It introduced 4x4 capabilities to road cars and was soon adopted by the military as well.
Jaguar I-Pace concept car on display during the media day LA Auto Show, Los Angeles, US
In 1951 it was handed a Royal Warrant by King George V11, and over the generations many of the Royals been transported in the vehicles.
The Series I enjoyed continued success until it was succeeded in 1958 by the launch of the Series II.
The Land Rover Series III is launched in October. It features a plastic grille, flatter door hinges and a full-width dashboard with optional fresh-air heater. 1971 is also the year that the 750,000th Land Rover is produced.
With an increasing demand for luxurious off-roaders, the Land Rover introduced the Range Rover in 1970. It is considered as the world’s most luxurious SUV.
Following the successful testing of the Velar concept vehicle, the first Range Rover was revealed to the world. It was met with widespread critical acclaim and was the first vehicle to deliver permanent 4 Wheel Drive and feature split tailgate, clamshell bonnet and continuous waistline.
Jaguar enjoyed motorsport success in the 1950s, winning the Le Mans 24 Hours race twice with a C-type – in 1951 and again in 1953 – and then with a D-type in 1955, 1956 and 1957. In 1961, the company launched what became perhaps the most iconic sports car of all time, the E-type. In 1968 it merged with BMC (British Motor Corporation), which later became part of British Leyland and included Rover.
Putting on the glitz: Former Spice Girl Victoria Beckham at the car launch of the Range Rover Evoque
So popular was the new car that British Leyland made Land Rover a standalone company in 1978. Very little about the first Range Rover was altered over the years – 1981 introduced a four-door, while a diesel arrived in 1986. As the Range Rover became seen as more upmarket, the Land Rover Discovery was launched in 1988 as a third model in the range.
After splitting from British Leyland, Jaguar became independent again in the 1980s, before being purchased by Ford in 1989. Land Rover, meanwhile, was bought by BMW in 1994, which expanded the range further by introducing the Freelander. It then joined Jaguar under Ford in 2000, with the two companies becoming closely linked, sharing engineering knowledge and facilities.
In 2008, the two were bought by Tata Motors, India’s largest automobile manufacturer, and officially joined together as one company in 2013.
Sales and profits of the Jaguar Land Rover have risen year on year, but things took a turn for the worse in recent years. In January it announced it was to make 4,500 job cuts, mainly in the UK, following 1500 job losses last year. It blamed the job losses on a downturn in sales in China brought about by Brexit.
The British car brands have proved popular with the rich and famous.
Celebrity couple David Beckham and his wife Victoria, are huge fans of both Range Rover and Jaguar and have owned many of the vehicles. Victoria even contributed towards the design a special edition version of the Range Rover Evoque.
Information sourced from jaguarlandrover.com
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