When did Ford buy Jaguar? Why did Ford sell Jaguar? Although Jaguar is still headquartered in Coventry, England, it has changed hands several times over the years. If you heard about the past merger of Ford and Jaguar, you may be wondering: does Ford own Jaguar, still? Not anymore! Although Ford did purchase Jaguar in 1999, it sold the company to Tata Motors in 2008. Based in Mumbai, Tata Motors is one of the largest automotive manufacturers in the world. If you’d like to learn more about this legendary luxury brand’s model lineup—including who owns Jaguar and where Jaguar is made presently—read on for a deep dive into automotive history.
When did Ford buy Jaguar?
Jaguar was founded as the Swallow Sidecar Company in 1922 as a company that made motorcycle sidecars. The business extended to developing passenger cars under S.S. Cars Limited, which changed its name to Jaguar Cars in 1945.
Jaguar began winning international motorsports competitions in the early 1950s, solidifying its place in history as a performance-focused luxury brand with classic cars like the Jaguar E-TYPE. Jaguar Cars merged with the British Motor Corporation in 1966, who then owned Jaguar Motors. Some time after, the company merged with Leyland Motor Corporation in 1968 to become British Leyland.
After spinning off from British Leyland, Jaguar was acquired by Ford in 1999, remaining under Ford ownership until 2008, when Tata Motors purchased both Jaguar and Land Rover.
Tata Motors then created Jaguar Land Rover as a subsidiary holding company. Despite the change in ownership, Ford still develops and supplies Jaguar models with different technologies and components.
Why did Ford sell Jaguar?
2008 saw Ford sell Jaguar to Tata Motors in India. This choice was made for the following reasons:
- Financial losses: For many years, Ford had been losing money on Jaguar. Jaguar lost $1.2 billion in 2007.
- Ford sought to concentrate on its core brands, including Lincoln and Ford, as a strategic move. Jaguar was considered a non-essential brand.
- Global economic downturn: The automotive sector was severely impacted by the 2008 global economic downturn. Selling Jaguar was one method Ford raised the money it needed to stay afloat.
Jaguar was successfully turned around and turned profitable by Tata Motors. Because of the company’s significant investments in cutting-edge goods and technology, Jaguar has become one of the most well-known luxury automobile brands worldwide.
Ford had to make the painful decision to sell Jaguar in order for the business to continue thriving.
Ford sells Jaguar, Land Rover to India’s Tata
Ford Motor Co. is selling its storied Jaguar and Land Rover businesses to India’s Tata Motors Ltd. in a deal that will net the U.S. automaker $1.7 billion — roughly a third of the price it paid for the two luxury brands.
The deal announced Wednesday will expand the Indian carmaker’s reach around the globe and give Jaguar and Land Rover badly needed capital to update and expand their product lines.
The sale had been in the works for months as cash-strapped Ford sought money to fund its turnaround plan.
Tata will pay $2.3 billion for the British brands, but Ford will pay about $600 million into the Jaguar-Land Rover pension fund when the deal closes, Tata’s statement said.
Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. But the Dearborn-based automaker has been struggling and wants to focus on its main brands.
Selling the companies at such a loss clearly shows buying them was a mistake for Ford, said Erich Merkle, vice president of auto industry forecasting for the consulting company IRN Inc. in Grand Rapids.
Jaguar never has made a profit under Ford, Merkle said.
“How can you call it anything else?” he asked. “You have to cut your losses at some point. It’s been draining them of cash and resources.”
The net proceeds aren’t enough to rescue Ford’s finances, but the sale will allow the company to focus on its core Ford brands, Merkle said.
Tata should have the cash to rescue the brands and develop new products to better compete with luxury automakers such as BMW AG, Merkle said.
Tata said it expects no significant changes in the terms of employment for Jaguar and Land Rover’s 16,000 workers. It said the transfer of the brands would take place at the end of the second quarter.
The sale raises the Tata conglomerate’s profile on the world stage, said V.G. Ramakrishnan, the lead auto analyst with the consulting firm Frost and Sullivan India.
“It gives them a much better branding image in the global market,” Ramakrishnan said. “This is another important landmark step of showcasing that Indian companies are arriving on the global landscape. Many people will see this deal as the future of things to come — you will see more companies out of India acquiring global companies. They want to be seen as major global players.”
In England, some workers were upbeat about the change, but others worried about the future.
Why did Ford sell Mazda?
In the midst of the world financial crisis in 2008, Ford sold its majority ownership of Mazda. Ford needed to raise money to stay afloat at the time since company was having financial difficulties. One method to achieve it was to sell Mazda.
Ford made a 1979 investment in Mazda, and the two businesses enjoyed a long-standing close working relationship. They shared technology and co-developed automobiles. Nonetheless, Ford’s choice to sell Mazda indicated that the business was having trouble and required adjustments.
Since then, Mazda has grown to be a prosperous stand-alone car company. The company has concentrated on creating fashionable and fuel-efficient automobiles, and its vehicles have garnered multiple accolades. One of the top automakers in the world right now is Mazda.
Ford sold its remaining Mazda shares in 2015. The two businesses’ lengthy and fruitful collaboration came to an end with this. Nonetheless, Ford and Mazda are still both prosperous automakers today.
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