The Financial Times
Tata's bid for Jaguar and Land Rover backed
By John Reed in London
Published: November 21 2007 19:17 | Last updated: November 22 2007 02:46
Tata Motors' bid for Jaguar and Land Rover received a potentially important endorsement on Wednesday from union shop stewards at the two brands, which Ford Motor is selling.
Union backing, while not essential, is seen as important for the politically sensitive deal. Ford will remain a significant employer in the UK even after it sells its two British luxury brands, where it could also keep a minority stake.
Tony Woodley, general secretary of Unite, said that the union stewards had made clear their preference to remain part of Ford. However, if a sale went ahead, the workforce's best interests "would be served by finding a partner with an established presence and background in manufacturing".
The union said: "Based on serving the best interests of the union members at Jaguar-Land Rover, the stewards agreed that Tata best fits these criteria."
The statement followed presentations to union representatives in London on Tuesday by shortlisted bidders Tata, rival Indian group Mahindra & Mahindra and buy-out group One Equity Partners, whose bid is being led by Jac Nasser, former Ford chief executive.
At the meetings, union representatives questioned the bidders about their plans for the two brands, including the possible moving of jobs offshore or other functions now based in the UK.
Some Jaguar-Land Rover employees have voiced concerns that an Indian buyer might outsource key engineering or other functions to India, or change the two brands' supply arrangements in the UK.
According to a person familiar with Tata's presentation, the carmaker committed to the two brands as a long-term investment and endorsed the two brands' management.
Ford and the bidders are not commenting on the sale, which Ford hopes to complete by early next year.
Ford had previously pressed bidders to make undertakings on jobs and plants at the two brands.
Any buyer – whether a carmaker such as Tata or a buy-out group – would be unlikely to make quick moves on the brand's manufacturing base, given their relatively small scale of production and strong UK brand identification.
Jaguar fell into financial losses in part because some consumers disliked its extensive sharing of production and parts with Ford's own-brand vehicles.
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