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Tata Motors Ltd. scored a key victory in its bid to win an auction for the Jaguar and Land Rover brands Wednesday when labor representatives from Ford Motor Co. said the Indian manufacturer is the only potential buyer they would support.
Ford put Jaguar and Land Rover on the block in June in a bid to raise cash to fund its ongoing restructuring. The automaker has said it hopes to announce a winning bidder by year’s end, with Tata, Indian rival Mahindra & Mahindra Ltd. and private equity firm One Equity Partners reportedly the finalists.
All three of those bidders met with Jaguar and Land Rover workers in the U.K. in recent days to outline their plans should they win control of the brands and to ease labor fears concerning a sale. The Wall Street Journal reported Wednesday on its Web site that while the union officially still opposes a sale of the units, it determined in a resolution that Tata is the only company among the finalists “with enough money, clout and experience in our industry” to succeed.
Though the union’s endorsement is nonbinding, labor is expected to play a large role in the outcome of the auction. Ford has pledged to preserve U.K. manufacturing jobs, and the winning bidder will likely need to work with labor leaders once the deal closes.
Mumbai-based Tata has long been linked to the units, and it is believed to have a particular interest in the Land Rover brand. The company already has a strong presence in the U.K., with its parent, Tata Group, owning Tetley Tea and steelmaker Corus Group plc. — Lou Whiteman
See TheDeal.com story on Ford's auction See TheDeal.com story on Tata's interest
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