It seems they just want to buy indian silk, handicrafts and cheap labour...not luxury cars manufactured by Indian owned company.



IMAGE ISSUES - Jaguardealers say no to India
B Y S TEPHEN P OWER & E RIC B ELLMAN
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http://epaper.livemint.com/artMailDisp.aspx?article=08_12_2007_001_005&typ=0&pub=422



Dealers warn against selling the Ford unit to Tata or M&M because US public isn't ready for Indian ownership T he head of a group that represents Jaguar car deal ers in the US is warning Ford Motor Co. against selling its pr-emium Jaguar brand to either of the two interested Indian bidders, because of what he called \"unique image issues\".
Instead of selling to India's Tata group or Mahindra & Mahindra Ltd (M&M), Ford should sell Jaguar to another final bidder, US-based JPMorgan Chase & Co. unit One Equity Partners, said Ken Gorin, chairman of the Jaguar Business Operations Council.

\"I don't believe the US public is ready for ownership out of India\" of a luxury car brand such as Jaguar, Gorin said in an interview this week. \"And I believe it would severely throw a tremendous cast of doubt over the viability of the brand.\" Gorin said he and his fellow US dealers also prefer One Equity Partners because the man leading One Equity's pursuit of the brands is Jacques Nasser.

Nasser championed high levels of investment in Ford's European luxury brands when he was chief executive officer of the Dearborn, Michigan, auto maker from 1999 until 2001.

Gorin said he wasn't judging the management capabilities of Tata or M&M. \"My concern is perception (in the marketplace), and perception is reality,\" he said.

\"It's about saying there are unique image issues with two of the bidders that the other one doesn't have.\"

He added that his concerns wouldn't be relevant if the car brand being sold was mass market. \"We're a luxury brand... There are a number of subjective items that create the lustre of a brand,\" Gorin said.

\"I don't mean to be negative towards anyone. I don't think we could have a Chineseowned Jaguar\" either.

A spokesman for Tata group declined to comment on Gorin's remarks. Representatives for M&M couldn't imme- diately be reached. A spokesman for Ford declined to comment. Last year, Jaguar derived 29% of its sales from North America. Gorin's comments illustrate how groups with a stake in the future of Jaguar and Land Rover are choosing sides as Ford approaches a decision on selling them.

Last month, about 60 senior shop stewards representing workers at Jaguar and Land Rover voted in favour of a resolution supporting Tata Motors Ltd's bid, should Ford choose to sell the brands.

The vote occurred a day after representatives of Tata Motors, M&M and One Equity met separately with British tradeunion leaders. Union officials want assurances that a sale of the brands wouldn't lead to job losses or factory closures.

While M&M has tended to specialize in tractors and offroad vehicles, the Tata group is a highly diversified conglomerate with experience in upscale businesses; its Indian Hotels division took over management of the landmark Pierre hotel in New York in 2005. The Tata group also owns former British stalwarts Tetley Tea and steel company Corus Group Plc., giving the company extensive links to UK business and political leaders.

Ford acquired Jaguar for $2.5 billion (Rs9,850 crore now) in 1989 and Land Rover for $2.75 billion in 2000. The company has put them up for sale as it seeks to refocus on its Ford brand and its North American business. Ford posted losses of $12.6 billion last year and has seen its revenue tumble this year.

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IMHO, this has nothing to do with racism. Like that guy says, it could well be a matter of perception.

For example..... you walk into store and you see 2 TVs, one says "Manufactured by Sony" (may be assembled in china) and the other says "Manufactured by ONIDA" or anyother Indian company but assembled in taiwan with the same config and price .....which one will you buy. " I will go for "Manufactured by Sony" knowing very well that most of the parts of the TV were probably manufactured and assembled in china. The reason is not that I discriminate against Indian manufacturers or taiwan assemblers. It is just that the whole world knows that Japanese are best in manufacturing electronic items and generally people prefer japanese electronics.

If it is software and if I have to choose between Indian branded and say chinese branded software.. I will go for Indian branded software for the same reason mentioned above not because I discriminate against Chinese.

Most Asians dont prefer to buy American cars and they prefer Japanese or German cars, so is it right to say that Asians discriminate against Americans that too living and working in the Americas.

IMO, Indians living abroad (including myself) tend to cry racism & discrmination at the drop of a hat when sometimes it is nor even abt racism. First we have to look at ourselves as Indians. Dont we discriminate against others. First we will have to clean the dirt on our backs beofre we complain that the other guy has a little dirt in his pinkie toe.

peace
rsk

"My concern is perception (in the marketplace), and perception is reality,"

This is true. Indian business is not associated with luxury items and Ford may indeed be diluting the branding that has been painstakingly cultivated for these high-end luxury items

However, it maybe about time to change perceptions especially since Indian owned businesses are growing in global stature. I say Jaguar should go to the Tata's and the Tata's should embark on an aggressive campaign to change perceptions (the tatas have the resources to accomplish it).

Its about time!

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It is a question of brand and goodwill developed over years in the luxury segment of the auto industry which one does not normally associate with the Indian auto houses. If you ask me it is a pure business decision, nothing else.

Trinity

Quote:

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Originally posted by jake3d

This is true. Indian business is not associated with luxury items and Ford may indeed be diluting the branding that has been painstakingly cultivated for these high-end luxury items

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Quote:

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Originally posted by puttoo


Jake .... Ford is selling its stake in Jaguar ..... if it gets the right price from TATA, they will sell it. After all once they sell their stake in Jaguar it doesn't make any difference to them that Jag makes luxury cars or makes Bullock carts ..... Ford does not have a properitary rights on luxury goods ........ They are simply in the bussiness of making cars to make money ....

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Considering how Jag is doing under Ford and the current slump in sales, the Tatas have a huge opportunity to do better. Perception, which I agree might be an issue, will only change if there's an opportunity for it to change.

I'm not surprised the dealers would be concerned, but I'm sure before Indian becoming the default market for high tech outsourcing, there were similar if not worse concerns raised about the quality of work and "perception". There still are to a certain degree, but the perception shift has been huge.

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