Ford's Sale of Jaguar and Land Rover*

Details

Case Code : CLBS104
Publication date : 2009
Subject : Business Strategy
Industry : -
Length : 05 Pages
Price : Rs. 100

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Key words:

Ford, Tata Motors, Jaguar, land Rover, restructuring

Note

* This caselet is intended for use only in class discussions.
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Abstract

On June 2, 2008, the Ford Motor Company (Ford), the world third largest automaker, completed the sale of Jaguar and Land Rover to Tata Motors. Jaguar and Land Rover were a part of the Premier Automotive Group of Ford and were considered to be iconic British brands. The sale was a part of Ford restructuring exercise, called the Way forward, which included plans to shut down unprofitable operations.

Introduction On June 2, 2008, the Ford Motor Company (Ford), the world's third largest automaker, announced that it had completed the sale of Jaguar and Land Rover to Tata Motors. Ford, based in Dearborn, Michigan, was founded in 1903 by Henry Ford along with eleven business associates. Henry Ford became president of the company in 1906. The company soon grew to become one of the most successful automotive companies in the United States (US). It started expanding into overseas markets in the 1960s.

In 1967, the company established Ford of Europe, integrating all its European operations under a single company. In 1970s, with the increase in popularity of small cars, Ford entered the mini car market...

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