Ratan Tata is not just one of India’s biggest industrialists, but also one of the most respected business leaders worldwide. People admire Ratan Tata not only for his business acumen but also for his continuous contributions to the country.
But this is a significant deal that put the luxury car manufacturer Jaguar Land Rover under Tata Motors’ control. There was a time when Tata was told that they didn’t know how to make cars. However, Ratan Tata proved them wrong by building a massive and successful car company.
In 1989, Ford purchased Jaguar from British Leyland for $2.5 billion. Jaguar, then considered an ultra-premium car brand, competed with the likes of Bentley and Rolls-Royce. Today, Jaguar stands alongside luxury brands like Mercedes, BMW, Audi, and Volvo.
Ford’s dominance in the global market continued into the 1990s as they acquired several big brands, including Aston Martin and Volvo, spending around $6.5 billion. In 2000, Ford also purchased Land Rover for $2.7 billion.
However, by 2006, Ford faced tough times, losing around $12.7 billion in the US auto market. To recover, Ford sold Aston Martin in March 2007 and announced a global auction to sell Jaguar Land Rover in June. Tata Motors won the bid, buying Jaguar Land Rover in 2008 for $2.3 billion, saving Ford from bankruptcy.
