Buy a Jag or Land Rover, get a Nano free!

After months of waiting (during which time, naturally, valuations, strategy discussions, turnaround plans were being formulated/refined), the Tata group has finally acquired Jaguar and Land Rover from the beleaguered Ford. This is indeed testimony to Ratan Tata’s vision and execution.

The $2.3+ B paid for the acquisition is no small amount, and only time will tell how well or to what degree the Tatas have been able to extract value. As I see it, they will probably do one or more of the following (in no particular order):

1. Use JLR technologies and people to design better cars (just as they did with their acquisition of Daewoo’s truck manufacturing) so that Tata’s cars become even better.
2. Use the overseas manufacturing facilities to make the Nano and sell locally.
3. Leverage the JLR dealer network to penetrate western markets like the US and UK.
4. Use the JLR stickers to raise expectations and hence, prices.
5. Pump in much needed resources to rev up Jaguar and Land Rover sales.

Look forward to someone else’s comments!