AUTOMOTIVE MARKET

AMERICAS: FEBRUARY 2008 - Tata in poll position to acquire Jaguar and Land Rover from Ford.

Ken Gorin, chairman of the Jaguar Business Operations Council which represents Jaguar dealers in the United States, stated in an interview in December 2007 that the American public was not ready for Indian ownership of a luxury car brand. He was quoted as stating, 'I believe it would severely throw a tremendous cast of doubt over the viability of the brand.' His opinion was dismissed as narrow by his UK counterpart James Brearley, chairman of the British Jaguar dealers' council.

Gorin's concerns were also dismissed by Ravi Kant, managing director of Tata Motors, Kamal Nath, India's commerce and industry minister and the president of the Associated Chambers of Commerce and Industry of India.

Despite this controversy Lewis Booth, executive vice president - Ford of Europe and Premier Automotive Group stated on 3 January 2008 that, 'Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar Land Rover business.'

'There is still a considerable amount of work to do, and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks with a view to securing an agreement that is in the best interests of all parties concerned.'

Jaguar's management was reported to be entirely relaxed at this decision.