Nano to launch today

Tata Motors said it will launch its ultra-cheap Nano car in Mumbai on Monday — a vehicle meant to herald a revolution by making it possible for the world’s poor to purchase their first car. But few predict the snub-nosed Nano will be able to turn around the company, which has been beset by flagging sales and high debt, anytime soon.

tata-nanoThe Nano, which is priced starting at about 100,000 rupees ($2,050), is a stripped-down car for stripped-down times: It is 10.2 feet (3.1 meters) long, has one windshield wiper, a 623cc rear engine, and a diminutive trunk, according to the company’s Web site. It does not have air bags or antilock brakes — neither of which is required in India — and if you want air conditioning, a radio, or power steering, you’ll have to pay extra.

Tata Motors has been hard-hit by the global downturn. Commercial vehicle sales, its core business, have been decimated as India’s growth slows, and consumers have had trouble getting affordable car loans. The company declared a loss of 2.63 billion rupees ($54 million) for the October to December quarter, and it has been struggling to refinance the remaining $2 billion of a $3 billion loan it took to buy the Jaguar and Land Rover brands from Ford Motor Co. in June. Even the launch of the Nano has been scaled back.

The car is arriving six months late because of violent protests by farmers and opposition political party leaders over land, which forced Tata to move its Nano factory from West Bengal to the business-friendly state of Gujarat. Company officials have said it will take at least a year to complete the new factory, and until then, Tata will only be able to produce a limited number of Nanos from its other car plants in India.

Tata Motors hasn’t yet given details on production volumes, but most analysts doubt the company will be able to make more than about 50,000 cars in the next year — a far cry from the 250,000 the company had planned to roll out initially. Vaishali Jajoo, auto analyst at Mumbai’s Angel Broking, said even if Tata Motors manages to sell 250,000 Nanos a year, it will only add 3 percent to the company’s total revenues.

“That doesn’t make a significant difference to the top line. And for the bottom line, it will take five to six years to break even,” Jajoo said.

Still, in this new age of global thrift, the Nano sounds appealing to more than just the struggling farmers and petty businessmen across India that Tata initially had in mind for the car. “What do you think the chances are that the Nano will come to America? Personally, I’d love one,” Steven Smith, whose first car was a Volkswagen Dune Buggy, wrote recently on the Nano Facebook page.

Tata Motors unveiled the Tata Nano Europa, a slightly more robust version of the Indian model, at the Geneva Motor Show this month, with a planned launch of 2011. But the company has no plans to bring the Nano to America anytime soon.

Above news source: Associated Press

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Tata buys Jaguar & Land Rover

Its official. India’s Tata Motors has finally bought Jaguar and Land Rover from Ford Motors. The exact pricing is to be unveiled today. But estimates are around 1 billion pounds. Finally after months of intense negotiations, Tata Motors will lay hands on two of the world’s most iconic automobile brands. The product profile of Tata Motors will now include the world’s cheapest car, Nano to expensive products like the Jaguar and Land Rover.

Earlier, there was news that Ratan Tata was interested in taking a stake in Ferrari. With this deal, the Tata group now holds on to some of the most iconic brands in the world which include Corus Steel, Tetley Tea, Ritz Carlton hotel in Boston, Jaguar and Land Rover.

jaguar fx concept

tata motors logo

land rover

Thousands of workers at Jaguar and Land Rover plants are expected to be told today that the marques have been sold to the Indian conglomerate Tata.

It is understood that a deal between Tata and Ford over the sale of two of the best known names in British car making was concluded last night after months of painstaking negotiations.

Ford refused to confirm a deal had been signed last night, saying any significant development had to be communicated to employees first. However, formal confirmation that the two sides have reached agreement is expected via simultaneous announcements in India, Britain and the US at around noon GMT today.

The companies have been in detailed negotiations for almost three months after Tata emerged as the leading bidder, ahead of rivals One Equity, a private equity concern, and automotive group Mahindra and Mahindra.

Yesterday the two sides were refusing to be drawn on reports from India that Tata had agreed to pay $2.65bn (£1.3bn) for the marques. The Reuters news agency quoted a source close to the deal as saying: “That figure of $2.65bn is highly unlikely. You have to come south from that by quite a bit.”

Full article here

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Tata buys Jaguar & Land Rover

Its official. India’s Tata Motors has finally bought Jaguar and Land Rover from Ford Motors. The exact pricing is to be unveiled today. But estimates are around 1 billion pounds. Finally after months of intense negotiations, Tata Motors will lay hands on two of the world’s most iconic automobile brands. The product profile of Tata Motors will now include the world’s cheapest car, Nano to expensive products like the Jaguar and Land Rover.

Earlier, there was news that Ratan Tata was interested in taking a stake in Ferrari. With this deal, the Tata group now holds on to some of the most iconic brands in the world which include Corus Steel, Tetley Tea, Ritz Carlton hotel in Boston, Jaguar and Land Rover.

jaguar fx concept

tata motors logo

land rover

Thousands of workers at Jaguar and Land Rover plants are expected to be told today that the marques have been sold to the Indian conglomerate Tata.

It is understood that a deal between Tata and Ford over the sale of two of the best known names in British car making was concluded last night after months of painstaking negotiations.

Ford refused to confirm a deal had been signed last night, saying any significant development had to be communicated to employees first. However, formal confirmation that the two sides have reached agreement is expected via simultaneous announcements in India, Britain and the US at around noon GMT today.

The companies have been in detailed negotiations for almost three months after Tata emerged as the leading bidder, ahead of rivals One Equity, a private equity concern, and automotive group Mahindra and Mahindra.

Yesterday the two sides were refusing to be drawn on reports from India that Tata had agreed to pay $2.65bn (£1.3bn) for the marques. The Reuters news agency quoted a source close to the deal as saying: “That figure of $2.65bn is highly unlikely. You have to come south from that by quite a bit.”

Full article here

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