Global investors aren’t very thrilled about Tata purchasing Jaguar if their move to dump stock is any indication. Tata stock is down 11 percent since being named Ford’s top bidder.
Why the sell off? Well, there appears to be a variety of reasons. Investors cite a range of concerns. One of which is not being able to invest enough to develop in the second-largest growing market in the world, India. Other concerns include poor fit with Tata’s current products and market segments and a potential $5 Billion cost to shut down Jaguar should the idea fail.
Ford hasn’t had much luck with profitability with Jaguar, hence they reason they chose to pair it with money-minting Land Rover in the sale. Land Rover seems to be the real prize that Tata is after and Tata may even spin-off Jaguar immediately after the sale.
So while the fate of Jaguar is still up in the air, it will likely continue to exist, but under whose ownership is unknown.
Source: Detroit News
[tags]Cars, Car, Auto, Automobile, Vehicles, Technology, Auto News, News, Automotive, Jaguar[/tags]