World not ready for Indian Products?

[AndyMA]

India likes to trumpet its corporate successes, and this week the emerging global power had plenty to shout about with the appointment of Indian-born Vikram Pandit to head troubled financial giant Citigroup. But even as it celebrated, India Inc. was also up in arms over perceived slights to its ability to run two of the world's most prestigious brands.
Rising Rupee Doesn't Float All Boats

India's currency comes of age, spurring complaints among exporters and bringing cheer to wealthy globetrotters

First, a group of U.S. Jaguar dealers said they opposed the possibility that Ford, Jaguar's owner, might sell the British luxury car brand to an Indian firm. Two of the three firms that Ford has shortlisted as potential purchasers are Indian: Mahindra & Mahindra and Tata Motors. The dealers said that the sale to an Indian company would hurt Jaguar's image. "I don't believe the U.S. public is ready for ownership out of India of a luxury car make," Ken Gorin, chairman of the Jaguar Business Operations Council, told the Wall Street Journal. "And I believe it would severely throw a tremendous cast of doubt over the viability of the brand."

 

[Rara Avis]

John Deere is using India...

Product Specification for 5103 Utility Tractor (45 hp)

5103 (45 hp)
5203 (56 hp)
5303 (64 hp)
5403 (74 hp)

Country of Manufacture Pune, India

 

[Robert_in_NY]

I understand the Jaguar dealers point. What type of clips does the US media ever play of India. You always see these heavily clothed people living in overcrowded cities that look like they are all made of dirt. Unless they turn on the Discovery chanel and watch some of the shows there where it shows the other side of these places then how many people really know what India is like. I wish Ford would keep Jaguar but the way they are struggling if selling them saves Ford then it makes sense.

 

[California]

I doubt any of the principals care what these US dealers think. If Jaguar is for sale then clearly it wasn't making money for its owners under the present arrangement.

That display of provincialism by the dealers is outdated. What we are seeing here is one of the first waves of *modern* Asia (India and China) investing the money we've been sending them. This flood of new Asian investment here may soon look like the era when the Brits were investing in India and taking home fortunes.

Everybody in India is aware of that history, and I'll bet they are amused at the US dealers' dismay.

 

[Robert_in_NY]

Would Ford be selling Jaguar if it wasn't making money? I thought you sold the business that will make you the most money in return and use that money to strengthen the rest of the company.

I remember when there was talk Fiat was going to sell CNH because of their car divisions struggles this was one of the reasons. You will make more money on a profitable company then a company that is losing money.

 

[Ford850]

Yep. You sell the fat hog and use that money to fatten the skinny one.

 

[Mac624]

I donï½´t think, that Jaguar is a fat hog. I has lost a lot of weight the last years.

A rumour said, that it is better to own two Jaguars, cause one of them always will be in the shop for doing repair.

The time of british cars is long gone.

Ford Fiesta, Focus or Mondeo ar built all over Europe today.

The Vauxhalls are badged Opels (GM).

Rover has been bought up by chinese and is made in China, now.

Bentley is Volkswagen.

No truckbrand either, excepted Dennis, which is manufacturer of special vehicles, like firetrucks.

Morgan or Aston-Martin, Rolls-Royce survived. But they are too specialized and too expensive for the normal user.

 

[JSharp]

Ford sunk billions into Aston Martin, Jaguar and Land Rover yet they've never made a dime from any of them. They already dumped Aston and have been trying to get rid of the last two for over a year.

The whole thing would be laughable if it weren't so sad. Trying to come up with cars for the upscale market by buying British companies was a bad idea from the start. British cars are known for a lot of things, but few of them are good. It's not likely that'll change in our lifetimes no matter who owns them.

As far as Indian products, IMO they're generally of higher quality that what we see coming out of China...

 

[ToadHill]

"British cars are known for a lot of things, but few of them are good."

Like the cartoon my friend had in his auto repair shop; British newsman reporting "The oil slick fouling the white cliffs of Dover has been eliminated, the gentleman responsible agreed to move his Triumph."

I owned a Jag from 93 until 03 it was a great car, decent mileage and all the power you could ever want.

 

[Z-Michigan]

The issue with Indian ownership of Jaguar is all perception by the elusive "luxury car buyer." I know a number of them, and it's no joke that they will buy for reasons I consider silly, like who else owns one and some supposed prestige. I guess having your car made by a company owned by a recently-ex-3rd-world country would diminish that prestige. (Me, I go for value and quality, so I've not been buying those "upscale" brands.)

Outside of the luxury world where image is far more important than substance, I think India is definitely becoming part of the prime time economy. I haven't been there but I understand that the wealth and development gap is incredible - the poorest are among the poorest on earth, while over 100 million people live a lot like US middle class people do.