Ratan Tata bought Jaguar Land Rover in Avenge
A must read story of Ratan Tata buying Jaguar to take revenge from Ford.
“Great” is not the only difference in people and great people. The story we are going to learn should tell the reason.
TATA group is a leading business house in India. Apart from their scale of business operations, they are also known for values observed in their business practises. Ratan Tata is another man who continued the legacy of India’s most trusted business house.
We see people reacting when they feel of being insulted. What happens if a person who has achieved extraordinary level in their respective profession is insulted. For sure that person will get angry. Great people can use this anger to plan business policies and goals. Tata group launched its passenger car Tata Indica in year 1998. The group was led by Ratan Tata and it was his decision to enter in the passenger car business despite the fact that Tata Group was doing very good in heavy commercial vehicle business. Tata Indica was a failure in its first year and the experiment seemed to be failing. Many people started advising Ratan Tata that he should sell the passenger car business. Ratan Tata also agreed to this and a proposal was also given to Ford and they showed interest. Ratan Tata along with his few close team members reached Detroit to discuss the same at Ford Headquarter. While the meeting went on for 3 hours but it seemed that the behaviour of Ford people was insulting toward the Tata group people. In the meeting chairman of Ford, Bill Ford said to Ratan Tata that “why did you enter in the passenger car business when you were not knowing of it. It will be favor if we buy this business from you”. Ratan Tata decided to immediately move back to New York and then to India. While travelling he was very tense as he felt very insulting.
After earlier failures, Tata Motors did well with its business of passenger cars but Ford did very bad. In 2008 when Ford was on its way of bankruptcy, Tata Group offered Ford to buy their luxury car brand Jaguar-Land Rover. Bill Ford along with his team reached “Bombay House”, the Tata Group head quarter in Mumbai. The deal was finalized for 2.3 billion US $ which amounted to 9300 crore Indian Rupees at that time. Ford was incurring heavy loss from Jaguar – Land Rover division. In the meeting Bill Ford said to Ratan Tata ” You are doing a big favor for us by buying Jaguar- Land Rover”.
Jaguar- Land Rover is owned by Tata Group and is currently making profit.