Jaguar Land Rover Might Be Buying Two Italian Exotic Brands
Speculation based on rumors, but whose to say its wrong?by Mark McNabb, on
Jaguar Land Rover has come a long way since 2008 and its days under Ford Motor Company. The iconic British brands went from life support to thriving over the last decade – all thanks to the Tata Group, the Indian automotive conglomerate that saved the brands from extinction. Well, it seems sources close to the automaker told Bloomberg that JLR is seeking to buy other luxury automotive brands, all with the support and financial backing of Tata.
That rumor is all well and good, both as a sign of JLR’s health and Tata’s goal of expansion. But the question still remains: what luxury automotive brands are in need of the Tata treatment? Gabe Beita Kiser of Carbuzz makes the very astute call of Alfa Romeo and Maserati. Both Italian brands are currently owned by Fiat Chrysler Automobiles. FCA’s frontman Sergio Marchionne has been rather public about his wishes to partner FCA with another automaker, or at least sell off a few of its brands. As of right now, Alfa Romeo is fighting tooth and nail trying to re-enter the American market with two all-new vehicles, the Giulia sedan and Stelvio crossover. Things aren’t going so hot, but Alfa continues to hang on. Maserati, on the other hand, is like the forgotten toy under Sergio’s bed. It’s a brand with a rich history and great potential, yet its practically stagnate. Could Jaguar Land Rover turn Alfa Romeo and Maserati around, all while under the watchful eye of Tata? It seems like a match made in vehicular heaven.
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Tata Wants JLR to Expand
Let’s hammer down the hierarchy here. As laid out in the Bloomberg piece, Tata Group owns and operated Jaguar Land Rover. Tata wants JLR to expand its reach into the luxury automotive segment by acquiring more luxury brands. While such a business plan might not sound so hot to some, Tata has proven itself a perfectly suitable and nurturing parent company to ill-fated and mistreated automotive brands.
According to [Bloomberg, Tata Motors, a division of Tata Group, profited about $6.1 billion by the end of June 2017, an 87-percent increase over the previous year. Tata Motors also earns roughly 78 percent of its revenue from its luxury brands, meaning Jaguar and Land Rover. Adding more high-end brands would eventually grow profits, at least after the initial investment and turn-around of the automaker and its products. Of course, money is the end goal for any corporation, so driving bigger profits from acquiring more luxury brands is only a means to an end for Tata Group.
Adding more high-end brands would eventually grow profits, at least after the initial investment and turn-around of the automaker and its products.
What do you think? Is Carbuzz on the right track thinking Jaguar Land Rover should buy Alfa Romeo and Maserati from Fiat Chrysler Automobiles? Can you think of other luxury brands better suited for ownership under JLR? Let us know in the comments below.
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