When India's Tata Motors Ltd. bought Jaguar Land Rover from Ford Motor Co. (NYSE:F) a little more than a year ago for $2.4 billion, the economic storm clouds were already gathering.
So on Sunday, when chairman Ratan Tata and other executives
officially launched the British brands in India, the hoopla had an undercurrent of worry. There was the stylish Jag, set to sell for more than $100,000 in India thanks to tariffs, with India's 5% growth rate and growing number of millionaires serving as reasons to be cheerful. But as India's Economic Times pointed out, those millionaires are already pretty happy
driving cars from Mercedes-Benz, BMW AG and Audi AG.
Then there was the fact that Tata Motors had just
reported a $520 million loss on the year because of troubles at the new luxury unit. On Monday Tata Motors shares closed down 8%.
Finally there were the ongoing discussions with the British government over guaranteeing a £340 million ($562 million) loan from the European Investment Bank to Jaguar Land Rover. At the launch ceremony Sunday, Ratan Tata indicated he might be willing after all to give the U.K. government a say in running the company in exchange for the backing. -
Kenneth Klee
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