Ratan Tata buying Jaguar is to take revenge on Ford
When we think about Successful businessmen they are logical, they are rational, they are focused, steely and eagle-eyed and on point even they are in crisis or danger and even in gross incompetence. They don’t express their anger and Ratan Tata is one of them. So in today’s blog, we are going to know Ratan Tata Revenge Ford in a full story.
Ratan Tata is an Indian industrialist who is also the chairman of the Tata group. The untold story of great businessman Ratan Tata faced “humiliation” by Ford when they wanted to sell the Tata group’s fledgling car business in the year 1999.
Even after that Ratan Tata used that humiliation as fuel to motivation and great come back to “do a big favor” just after nine years by taking over the American giant’s marquee brands Jaguar and Land Rover.
In 1998, he launched its first passenger car Tata Indica.
Ratan Tata, chairman of Tata Motors launched its first passenger car Tata Indica in the year 1998. Tata Indica was India’s first-ever indigenously developed passenger car in the year 1998. At that time, the determined car was not a commercial success in the first few years and was facing strong competition. Competition from well-established small car brands like Maruti and Hyundai. The poor response had driven Tata Motors to sell the car business, within a year of its debut in 1998.
Ford Motor showed interest in buying Tata Motor’s car division. Ford officials came down to headquarter at Bombay House and evinced interest in the Tata Motors car division.
Ratan Tata and other top executives went to Detroit for further discussions to sell off with Bill ford. The meeting went on for nearly three hours. Ratan Tata discussed the sell-off with Ford officials but was meted out with humiliating treatment.
“You do not know anything, why did you start the passenger car division at all. It will be a favor by buying car division from you.”Ford Motors officials told Ratan Tata,
And this statement made Ratan Tata very insulting and he was very tense about the words. Ratan Tata decided to return to the market.
After facing so many failures, Tata Motors did very well and established itself as a reputed brand in the market.
In the year 2008, Ford motors were on the edge of bankruptcy due to the 2008 global financial meltdown. Nine years from the ‘humiliation’, the clock has turned and made a full circle to the salt-to-software conglomerate Tata, now this humbled the powerful Ford.
But this time Ratan Tata grabs the opportunity and showed interest and Ratan Tata Revenge Ford. Tata Group showed interest in buying their luxury car brand Jaguar- Land Rover (JLR). And after long meetings, Tata bought it for a whooping US $2.3 billion amount. This amounted to 9300 crores in Indian rupees in the year 2008.
Now this time in a meeting with Ratan Tata, Ford chairman Bill Ford thanked Ratan Tata,
‘You are doing us a big favor by buying Jaguar- Land Rover’.Bill Ford quoted.
Comeback by Tata’s
Now everyone knows well that Tata Motors are well reputed, established and successful in the automobile market. In the other hand, Land Rover-Jaguar (JLR) has also become successful in the market. In fact, within years of the takeover, JLR made a remarkable turnaround. Now JLR is the mainstream of Tata Motors’ finances.
This was a short story of Ratan Tata taking cold revenge with mighty Ford Motors and Ratan Tata Revenge Ford. I wish you like the post; make sure to share it with your friends and family on WhatsApp.
We will catch you in the next one till then take care of yourself.