carfault.co.uk
Tata's bid promise to keep UK car plants open won over unions
Tata Motors has promised to keep Jaguar and Land Rover's three UK plants and two product engineering sites open until at least 2011 as part of its winning bid to buy the two carmakers, it emerged yesterday.
The Indian group's pledge appears to have played a decisive role in securing unions' endorsement of its $2.3bn (£1.44bn) bid for the two brands, which will see Ford Motor continue to supply them with engines, components and technology, and its credit arm to provide vehicle financing for up to a year.
The purchase marks a new peak for global acquisitions by India's expansive companies, led by the Tata group, one of its oldest and biggest conglomerates.
Bankers believe there will be many more such deals as cash-rich emerging market companies take advantage of the downturn in the west and a slump in activity by private equity firms to buy up some of their better established but struggling rivals.
Tata's pledge - at a meeting with unions in London in November - was welcomed in Britain's West Midlands region as giving breathing space to Jaguar and Land Rover factories that have been regularly tipped for closure. In a cost-conscious industry where rationalisation and relocation to lower-cost countries are common, the plants produce only about 300,000 vehicles. Jaguar is losing money but Land Rover is profitable.
Unions succeeded in pressing Tata to pledge broad support for the carmakers' existing five-year business plan. Dave Osborne, national secretary for the car industry in Britain's Unite union said: "Tata has confirmed there will be no changes to the manufacturing and product development footprint under the business plan, which runs up to 2011."
Tata said: "It is true, as per the business plan agreed between the management of Jaguar and Land Rover and the unions, and it is based on assumptions made in that business plan".
Aniket Mhadre, analyst with Centrum Broking in Mumbai, said: "In the short term, it's very negative for Tata Motors, primarily because Jaguar is lossmaking."
Tata is said to have made no specific commitment to maintain the two brands' staffing at its current level.
A Welsh businessman from Oxford has invested £34,400 to purchase the number plate WEL 5H.
The sought after plate went under the hammer at a DVLA Personalised Registrations auction held at the Celtic Manor Resort in Newport , South Wales .
The purchaser, who wishes to remain anonymous, says he bought the plate to celebrate Wales ' Grand Slam rugby success and he intends to display the number on his new Mercedes CL 500 car.
WEL 5H was the first lot in a three day auction of 1500 distinctive registrations.
According to Damian Lawson, marketing manager for DVLA Personalised Registrations, "the plate sold for three times the expected value.
"And we had a nice little surprise for the lucky bidder. Joe Calzaghe helped us to promote our Welsh auction and kindly signed a number plate which we will be sending to the customer."
DVLA Personalised Registrations hold six auctions of their most distinctive registrations each year at prestigious locations around Britain .
Additionally, they offer a choice of more than 30 million registrations through their telesales scheme at fully inclusive prices starting from £250.
Full details of all registrations available can be found at dvlaregistrations.co.uk.
car faults
Britons are spending over £238m a year to fix faulty used car purchases.
Almost a third of used car buyers are failing to spot problems on the forecourt, leaving them with a lighter wallet and a financial headache.
According to research by RAC Vehicle Examinations, the faults on vehicles are often obvious with nearly a quarter of buyers who experience difficulties reporting mechanical problems within a month of ownership.
The survey also found that despite a lack of technical knowledge, only 29 per cent of car buyers paid for a professional vehicle examination and almost half of buyers spent less than half-an-hour carrying out checks on their potential purchase.
|
