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The symbolism could hardly be greater: Tata, India’s second largest carmaker, unveiled the world’s cheapest car yesterday, a £1,200 runabout called the Nano that threatens to overwhelm the streets of nations throughout the Far East as four-wheeled transport comes within the reach of millions for the first time.
Yet Tata’s eyes are on a far more prestigious prize. Within weeks the ambitious Bombay-based business could own Jaguar and Land Rover, companies that produce cars far beyond the reach of all but the exclusive few. Tata makes a £1,200 car; Jaguar and Land Rover make cars that can cost £70,000 and more.
The disposal of Jaguar and Land Rover by Ford is just another sign that the sun has not only set on the British Empire but the lights have gone out as well. Ford may have been an American multinational company, but its long history and substantial presence here always made it feel as though the two charismatic brands had stayed within our grasp. But Ford’s hopeless inability to manage Jaguar, in particular, has served to underline that the world is looking to the East for its salvation.
Tata could be a prime player in the British luxury car market, if it gets hold of Jaguar and Land Rover. At least under Ford the two Midlands-based companies could be promised an interchange of high-technology, design ideas and talent with their parent business. But what will Tata bring except for size? Precious little, probably, unless it has the money to throw at the pair in the same quantities that have kept BMW and Mercedes-Benz at the top of the executive market for so long.
Land Rover remains the preeminent manufacturer of 4 x 4 machines, although that is not much recommendation in the present hostile environment where global warming threatens to melt down sales of big four-wheel-drive vehicles. Which means Tata will have to come up with some interesting strategies to adapt the business.
Jaguar, though, is a basket case. Sales shot from 50,000 to 130,000 in 2002, with the launch of the “baby” X-Type but sank ingloriously to 63,000 last year. The X-Type – the brain-child of Jacques Nasser, once the global chairman of Ford and, ironically, one of the bidders in the takeover battle – was not good enough to compete with BMW’s 3 Series, the Audi A4 or the Mercedes C-Class.
The Jaguar S-Type was also a lukewarm, retro affair that did not catch on. The company has launched the XF to yet more tepid reviews and the suspicion remains that only a thorough shake-up can rescue a brand that was once one of the most revered in the world.
If Tata is buying the badges in a postimperialist bout of muscle-flex-ing, they could be making a huge mistake. Meanwhile, the factory workers in Solihull and Birmingham must be wondering what brilliant ideas will come from a manufacturer whose only headline-grabbing vehicle is a car that comes at the price of about four iPhones. They will need to be good or the sun will be setting for ever on two famous British motoring names.
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Despite a great deal of bravado here from our Indian contributors, their vast country - with its billion or more people - is still nowhere on the Fortune Global 500 list, and their car makers are still a laughable match for any U.S., Japanese and European counterpart in terms of overall quality, safety and desirability. No question that there's potential for them to succeed, but not in Jaguar's or Land Rover's markets.
The point this article was trying to make was that Tata desperately need the input of designers and engineers from Europe, America and Japan - NOT the other way around - to succeed in a marketplace where successful people want status symbols such as Astons, Bentleys, BMWs, Porsches and Benzes. You're deluded if you think an Indian manufacturer best known for cheap and functional transport can overthrow the European old guard simply by writing large cheques!
Phil, Brentwood, Essex
To digress slightly. You talk about postimperialist bout of muscle-flex-ing. Please take some time to read som pre imperialist facts.
India was the richest country on earth till the British invasion in the 17th century.
India has never invaded any country in her last 10,000 year history.
Sanskrit is the mother of all European languages. Sanskrit is the most suitable language for computer software (report in Forbes magazine, July 1987)
Albert Einstein said: We owe a lot to the Indians, who taught us how to count, without which no worthwhile scientific discovery could have been made.
Mark Twain said: India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grand mother of tradition. Our most valuable and most structive materials in the history of man are treasured up in India only.
French scholar Romain Rolland said: If there is one place on the face of the earth where all the dreams of living men have found a home from the very earliest days when man began the dream of existence, it is India.
Hu Shih, former Ambassador of China to USA said: India conquered and dominated China culturally for 20 centuries without ever having to send a single soldier across her border.
When the Maharaja of Patiala was snubbed by snooty British salesmen at a Rolls Royce showroom in the U.K., he hit back by buying up the entire consignment of 50 vehicles on display and turning them into garbage trucks back home. An English paper printed a picture and the story that made company representatives scurrying to Patiala with an olive branch.
Rana, London, UK
Eason, you seem to be a typical below average British brat who wants to bask in the past glory of your forefathers!! But, as our Ex-Prime Minister said in the late 1990s, Britain is a 3rd grade world power and is a Lap Dog of the US and will remain so in the decades to follow.
FYI â Zero was conceptualized in India, 1st Intel chip was designed by an Indian, there are more engineers in NASA of Indian origin than of any other Nationality and to increase your knowledge, India has the largest pool of highly skilled techies that conceptualize, design and produce state of the art products from batteries to cars and soon spacecrafts.
So, STOP whining and STOP living in the glass castle. At least, try to increase your knowledge if nothing can be done about your IQ!
AR, MUMBAI, INDIA
Wake up and smell the coffee Eason. This is the year 2008 not 1908. Your problem is one of indifference not of ignorance. Alas if it was ignorance it could be put right with education.
Char-so-vis, London, UK
It appears to me that your opinion is not shared by the motoring press in the UK.
pekem, Bedford, UK
"At least under Ford the two Midlands-based companies could be promised an interchange of high-technology, design ideas and talent with their parent business. But what will Tata bring except for size? "
Techology is being now transferred from India to the west, it started with software design but engineering is fast catching up.
Do not underestimate Tata. Ford's biggest challange comes from companies like Tata, with their innovative engineers. Ford itself has boosted its recruitment Indian enginners, products of india's famous IIT tecinical colleges, these colleges also put India's software industry on the world map.
Levy, London, United Kingdom
'If Tata is buying the badges in a postimperialist bout of muscle-flex-ing, they could be making a huge mistake.'
I dont think Tata thinks along those terms, not many Indians do. But the author has convinced me of his post imperialist bout of 'nobody's still as good as us' attitude.
Lijya, London,
What a contemptuous artice...you folks are going to have a hard time in the 21st century with China and India dominating. Is Dr. Kervokian still around? Maybe he can deliver you from the pain.
Rajit Ojha, Mumbai, India
"Ford the two Midlands-based companies could be promised an interchange of high-technology, design ideas and talent with their parent business."
Pray tell us what kind of new technology Ford has come up with in recent times.
"what brilliant ideas will come from a manufacturer whose only headline-grabbing vehicle is a car that comes at the price of about four iPhones. "
And you obviously don't see that as a technological breakthrough ?
Cynic, Brisbane, Australia
tata have tie ups with fiat. so they can share tech and platforms with alfa. besides there are so many brands out there who would nt mind have synergies with Lanrover eg Jeep. that is the way to move forward.
celix Pereira, Goa, India
The British Empire no longer exists. Learn to live with it and quit whining.
The UK is a lapdog of the USA, and will be insignificant in the world compared to China and India in a few decades. All good things must end, my friend, and world domination for you has ENDED.
Isiah, Washington, DC, USA