TATA Vs Jaguar Vs Land Rover

Journey of TATA
1945 | Tata Engineering and Locomotive (Telco) was set up to manufacture locomotives and other engineering products
1986 | Production of first light commercial vehicle, Tata 407
1991 | Launch of indigeneous passenger car Tata Sierra
1992 | Launch of Tata Estate
1994 | Launch of multi utility vehicle Tata Sumo 1998 | Tata Safari, India’s first sports utility vehicle, launched
Indica, India’s first fully indigenous car rolled out 2002 | Introduces sedan Indigo
Telco signs a product deal with MG Rover of the UK 2003 | New identity. Tata Motors replaces Telco 2004 | Takes over Daewoo Commercial Vehicle Co
Tata Motors lists on the New York Stock Exchange
2005 | Launches Tata Ace, India’s first mini truck
2006 | JV with Marcopolo of Brazil to manufacture fully built buses and coaches for India and overseas markets
2006 | Inks Industrial joint venture with Fiat at Ranjangaon, near Pune, to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets
Journey of JAGUAR
1922 | Jaguar founder William Lyons forms ‘Swallow Sidecar Company’ for making sidecars for reconditioned motorcycles.
1966 | Jaguar merged with the British Motor Corporation, the Austin-Morris combine, to form British Motor Holdings
1968 | Merges with UK’s Leyland which had taken over Rover and Standard Triumph. New company British Leyland Motor
1975 | Became British Leyland Ltd after nationalisation
1984 | Jaguar floated off as a separate company on the stock market, one of the Margaret Thatcher govt’s many privatisations
1989 | Ford buys the company for $2.5 billion
Journey of ROVER
1948 | First vehicle unveiled at the Amsterdam Motors Show
1988 | British Aerospace takes over Rover Group
1994 | British Aerospace sells Rover Group to BMW
2000 | BMW splits the Rover Group into two, selling Land Rover to Ford for $2.73 billion. The car division is sold to the British Phoenix management group

India Inc Shining: Jaguar is now Indian Brand

So what if the Kohinoor diamond—once considered the ultimate symbol of Indian wealth and power—now resides with the Queen of England? On Wednesday evening, Jaguar and Land Rover, icons of British luxury, passed into Indian hands for £1.15 billion ($2.3 billion). The event was marked by a no-frills note issued by Tata Motors from its Mumbai HQ. The irony of it all wasn’t lost in either India or the UK.
With an investment of $104 billion, India is now the second largest foreign investor in Britain. And it took a company from a former colony to come to the rescue of a beleaguered British brand. In 2000, the Tatas had similarly bailed out another quintessential British brand, Tetley Tea, by acquiring the company for $432 million. Last year, in an operation marked by high drama, they mounted an aggressive bid for Anglo-Dutch steel behemoth Corus.
The JLR transaction has been a relatively tame affair. Soon after Ford Motor Company—the American owner of the brands for the last 18 years—put the brands on the block, the Tatas, Mahindra & Mahindra and Jacques Nasser, former CEO of Ford, had expressed interest.
Mahindra and Nasser backed out after Ford and the company unions indicated they were comfortable with the Tatas. What followed was mere wrangling over details. For instance, Ford Motor Finance will continue to finance buyers across the world looking to acquire Jaguar or Land Rover products for the next 12 months. Also, Ford will continue to supply key technology and components to both brands for some time to come.
In a conference call, Ravi Kant, MD, Tata Motors, said the existing management at Jaguar and Land Rover would be retained and Geoff Polites, CEO at both companies, had agreed to continue in his existing role. He also reiterated that there would be no job cuts at the manufacturing facilities in the UK.

What if US go to recession?

I always Admired USA because of its intellect and great home to all the knowledgeable Institutions Like MIT, Harvard, Wharton, etc ( in fact out of top 100 education institutions more than 50 belong to USA) . I always believe their superior intellectual power due to the above-mentioned reason.

So I wanted to take opportunity to discuss some notions about USA Recession floating around us. Some are comparing it to 1920s situation that I beg to differ.

May be in short term yen may appreciate, Fed may cut interest rate and dollar depreciates, May gold and crude rise on Hedging. But in longer term Everything will get Reversed (may be 6 month from now)

Now lets take case by case,

If dollar depreciates than US exports will Benefit and it will rise as it will become more competitive. Companies Like Microsoft, GE, Boeing and other companies in Technology space, Heavy Engineering , Defense , agro processing will benefit . Thus more income from exports will stimulate the economy. Mind it USA economy stands on many pillar and one breaks (housing) other will hold.

But as you know Imports will be expensive …like crude

Now unlike India where higher energy cost are not passed to the consumers due to the political pressure, In US its gets adjusted every day… so if Fuel cost will rise than it will pinch people there more and they will become more efficient user . They might shift to efficient cars, (so new cars sales may actually rise) or they will take mass transit system (again it will be good as under capacity will be used optimally). Thus reducing the demand of over all crude. As prices goes up demand comes down simple. And if demand comes down than crude prices will come down I feel it will come down as USA consumes 50% of total crude supplies , so impact on prices will be visible) or atleast they wont rise. (but

Now lets talk about non-crude imports. As we know USA major trade partner is China, and China has a fix dollar policy (currency is fixed /pegged) the impact in value of import will be Nil. Thus exports will rise and import value will be stagnant thus reducing the trade deficit. Once the trade deficit will start reducing dollar will stop depreciating and infact it may start appreciate. Thus people will again shift from gold (as gold bear no interest and have no economic value if its stagnant or declining ) to dollar .

Now lets see what will happen to China

China in last decade used appreciating dollar to its advantage . It pegged its currency with Dollar . So its export value was rising with the appreciation of dollar and at the same time Imports were getting cheaper (like crude and steel) thus it was able to amass 1 trillion dollar of reserves in last 10 years. Hence the growth rate and low inflation.

But now when dollar depreciates its export value is coming down for the same volumes but import is getting more expensive hence high inflation and low growth …

It will be just matter of time that China will be forced to break the peg with the dollar sooner than later. If it does so than its export will become expensive and countries like India and other ASEAN countries will become more competitive. Thus its will be good news for India.

What will happen to Japan ??

As we know that's yen has rallied from 125 to sub 100 levels in matter of 4 months .

And we also know that Japan have 1.5 trillion dollar worth of US treasuries.

So if yen appreciates by 20% than US will make 20 % on 1.5 trillion dollar or 300 billion of notional profits ( which is almost the amount of US subprime losses) because Japan has invested into a depreciating asset (which get depreciated by 20%)

Secondly Japan's economy is 4 trillion USD and major portion is export. Again USA and china are the major partners . So if its currency appreciates by 20 % than one can imagine what will happen to exporters . ( just imagine what will happen to Infosys if rupee appreciates from 40 to 32 levels) . So Japan cannot afford this double whammy both from investment loss and demise of exporters . So in all probability it will cut rates from .5% to 0% thus depreciation of yen and start of carry trade … thus inflating asset classes like equities

Now again back to USA

If Fed cuts rate than housing will again starts and will help economy .

Secondly , even in 2003 companies like ENRON and Worldcom went bust but USA expansion did not stopped . In capitalist economy companies goes bust and new companies takes place . If u see the original companies in Dow jones index only 2-3 companies has survived . All are new entrants. It happens everywhere ..

So trust Fed as Ben Barnake is very respected academician and is author of many vital economic theories paper even Nobel economists admires

So we are lesser Mortals in passing outright judgments on him and US government

Why Are So Many Americans Financially Dumb?

Yeah, we are a nation of financial dummies.

1. Look at all the worthless get-rich schemes on the Net and TV. These ads exist BECAUSE people are buying.

2. Watch the confused look on the cashier?s face when you hand over extra coins AFTER the register displays your change.

3. Witness the people standing in line overnight for the privilege of ?25% savings.? Aren?t they waiting to SPEND money?

If you?re a non-believer, read these statistics:

1. According to fool.com, ?68% PER CENT of graduating high school seniors surveyed by the Jump$tart Coalition for Personal Financial Literacy failed a personal finance test in 2002, compared with 44% who failed in 1997.?

2. The U.S. Public Interest Research Group states that ?40 percent of college students are graduating with unmanageable levels of student loan debt, and half of those have an average credit card debt of $3000.?

3. Near retirement age baby boomers have saved only 12% of what they think they will need for retirement.

THE REASONS WHY?

The U.S. Public Interest Research Group attributes the debt issue to rising costs.

The deputy assistant secretary for financial education at the Treasury department testified before the House, "The downstream, adult problems of rising bankruptcy rates, low savings rates and misuse of credit can all be traced upstream to how our schools FAIL TO adequately prepare children for their financial futures."

So far, the reasons why we we?re financially dumb are because of rising costs and inadequate schooling. But clearly, these are not all the contributing factors?

There are other reasons, including...

1. Math skills are declining. This is the author?s observation. It?s based on teaching high school math 30 years ago compared to teaching college-level math in 2003. Kids in the same area are less skilled than 30 years ago.

2. Parents forget they are financial role models. They miss opportunities to develop their kids money smarts.

CONSIDER THIS SOLUTION

Hate to ride the ?family values train? because there are conflicts with the conductor. And the author?s opinion is an educated guess.

But, parents, consider this...your kids reflect your money habits, attitudes, and behavior. What are YOU teaching your kids about money?