Tata’s bid for Land Rover and Jaguar received a shot in the arm from an unexpected quarter when the Ford unions threw their weight behind the Indian conglomerate.
LONDON: Tata’s bid for Land Rover and Jaguar received a shot in the arm from an unexpected quarter when the Ford unions threw their weight behind the Indian conglomerate.
Union officials said they were impressed by Ravi Kant, the managing director of Tata Motors, who assured them that workers would not be losing their jobs.
The unions feared that, if successful, Tatas would be exporting UK-based jobs to lower cost factories in India, but Kant allayed their fears arguing that his company has no intention of doing that.
“We don’t want Ford to sell off the two brands, but if that is inevitable, then we would prefer the bidder to have an established presence in manufacturing,” said Tony Woodley, joint general secretary of Unite, now batting for Tata.
Land Rover and Jaguar directly employ 16,000 people, which rises to 40,000 if employment throughout the supply and support chains are taken into account.
Ford has involved the unions and the government in the sale discussions because there are so many jobs at stake.
The backing of Tata by the unions is a definite blow to the hopes of OneEquity, a leading rival, which is a unit of JP Morgan and fronted by Jacques Nasser, former Ford chief executive.
Union officials from the factories serving the two luxury brands opted to back Tata because they felt that a manufacturer would offer more long-term security than OneEquity.
Tata’s reputation and image as a good employer and their track record in successfully buying other British firms - Tetley Tea and Corus Steel - has certainly helped it garnering support from the unions.
“Ford workers have drawn comfort from the fact that the group made similar assurances when it bought Corus. Tata’s name as a reliable investor will, of course, depend on the company honouring these pledges,” said James Harding, Business Editor of The Times.
However the unions’ support doesn’t mean that the deal is sealed. “The view of the unions will not count for much in deciding who ends up owning two of Britain’s greatest car brands. This is not a beauty parade, but an auction,” added Harding. Mahindra & Mahindra is also in the race.
Ford is hoping to decide on a preferred bidder for the two brands, which are to be sold together, by the next month, and people involved in the sale expect both businesses to fetch just below £1 billion.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}