JAGUAR LAND ROVER PLANNING TO BUY MORE PRESTIGE MARQUES TO ADD TO THE FAMILY

 

Jaguar Land Rover is scouting for acquisitions of international automakers amid rising competition in the industry, people with knowledge of the matter said.

For those who might start thinking sacrilege, remember in 1960 Sir William Lyons single handedly purchased Daimler, Lanchester, BSA, then Coventry Climax, GUY trucks, Hobbs Transmission, Daimler Hire, Daimler Air Hire, Hooper and Barker Coachbuilders, Carbides and Stratton-Instone.  In doing so Jaguar’s founder set the precedents Tata too can build on.

The company has been holding internal discussions on buying other brands to diversify the range of vehicles it sells, the people said. It will consider purchases of luxury marques that fit with its current portfolio, according to one of the people, who asked not to be identified because the information is private. JLR is also weighing purchases of technology companies that would boost the company’s efforts to roll out electric vehicles and autonomous driving systems, another person said.
 Tata Motors had amassed 397.6 billion rupees ($6.1 billion) of cash and equivalents at the end of June, up 87 percent from a year ago, data compiled by Bloomberg show. That’s the second biggest among listed Indian companies, trailing Reliance Industries Ltd. The company plans to use that record hoard to add new products, technology and manufacturing capacity, Tata Motors Group Chief Financial Officer C Ramakrishnan said by email earlier this month.

Maserati, Alfa Romeo

Tata Motors gets about 78 percent of its revenue from the luxury brands, according to the Bloomberg-compiled data. No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the people said. Representatives for Tata Group and JLR declined to comment.

Fiat Chrysler Automobiles NV is considering options including a plan to spin off the Maserati and Alfa Romeo sports-car brands in order to sharpen its focus on mass-market vehicles, people familiar with the discussions said in August. Volkswagen AG has been weighing the sale of non-core assets including Italian motorcycle brand Ducati, people with knowledge of the matter have said.

In June, JLR said it was working with Lyft Inc. on autonomous-driving technology and will offer vehicles for rent to the San Francisco-based startup’s drivers. The automaker also said it had invested $25 million in Lyft as part of a funding round that closed in April, valuing the business at $7.5 billion.

Jaguar will begin selling its I-PACE electric-powered sport utility vehicle next year, and already has 25,000 orders for it, company Chief Executive Officer Ralf Speth said this month.

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