Jaguar Land Rover has been linked to the purchase of Aston Martin in recent weeks after reports it is sitting on a ‘war chest’ of billions and it hits the acquisition trail and seeks to expand.
According to a recent report by Bloomberg, anonymous sources have said Jaguar Land Rover was holding internal discussions about buying other brands to diversify the range of vehicles it sells.
The report also stated the Coventry-based firm would consider purchases of luxury marques which fitted within its current portfolio.
Bloomberg said senior officials at Tata Group want to increase the size of the company to stay competitive and the firm is willing to provide financial support for potential acquisitions.
With rumours about potential acquisitions rife, we put the possibility of JLR purchasing Warwickshire-based Aston Martin to Jaguar Land Rover’s chief executive, and Tata board member, Ralf Speth.
We also asked Lord Kumar Bhattacharya for his thought on a potential deal. Lord Bhattacharya, chairman of the Warwick Manufacturing Group, is a key advisor to JLR and Tata and is credited as playing a key role in the Indian firm’s takeover of Jaguar Land Rover in 2008.
“It’s very exciting”
Asked about a Jaguar Land Rover acquisition fund, Lord Bhattacharya said: “All companies have got these kind of war chests. Every company discusses the possibility of that.
“Let’s see how it goes.”
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Asked specifically if JLR could be interested in buying Aston Martin, he said: “Maybe. But they’ll probably also be looking at big international companies.
“After all, with Tata behind JLR and the success JLR has shown, if anything were to come, and if there was good faith, they would go for it.
“But I don’t know if anyone has yet. Nevertheless, it might be there.
“It’s very exciting. It’s again the renaissance of the British car industry, which Coventry was at the heart of in the past.”
Priorities elsewhere
Speaking at an event taking place outside the under construction National Automotive Innovation Centre, at Warwick University, Mr Speth was eager to avoid questions about potential takeovers insisting focus should be on “enjoying this lovely day”.
Asked about the possibility of Jaguar Land Rover looking to purchase another car firm, he said: “Our first focus and priority must be to create something special out of that building (the National Automotive Innovation Centre). To train people, to train students and to provide something for the society here.”
When asked specifically about whether the company had considered whether Aston Martin might be a good fit for JLR, he answered: “Sorry, no”.
JLR statement
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A spokesman for Jaguar Land Rover said: “Jaguar Land Rover is focused on the global expansion of its award-winning Jaguar and Land Rover brands, and on building a profitable, sustainable business.
“The company is not considering the acquisition of any automotive brands at this time, and will not comment further on such speculation.”
Other possible purchases
Vauxhall - General Motors sold Vauxhall to Peugeot Citroen some time back and the French car maker is still working out what it plans to do with the brands.
Essentially both Vauxhall and Opel are the same, with the vehicles badged differently depending on the market. Vauxhalls are only sold in the UK, elsewhere it’s Opel.
Some industry experts suggested Peugeot Citroen might be prepared to off-load Vauxhall and its UK factories.
Such a deal might make reorganising production easier for Peugeot Citroen and enable Jaguar Land Rover to acquire a new brand and an established British one at that.
Jeep - A brand that has been passed around a lot in recent years. It was once part of the US car company Chrysler, which was snapped-up by Mercedes’ owners Daimler to become Daimler Chrysler but latterly has come under the ownership of Fiat.
The World War Two Willys Jeep became the blueprint for the original go-anywhere Land Rover (later the Defender).
Adding a marque with a rich four-wheel drive heritage could make a lot of sense, particularly given the seemingly unstoppable demand for SUVs and crossovers in all shapes and forms.
Jaguar Land Rover
MG - Another great British name and one of the few survivors, along with Jaguar and Land Rover, from the behemoth that was British Leyland.
Its history has been chequered. It was originally on offshoot of Morris, hence the MG name (Morris Garages).
At its height the company was hugely successful with an enviable reputation for making affordable but fun sports cars. Vehicles like the MG Midget and MGB have deservedly become classics.
Like Land Rover, MG ended-up becoming part of BMW - along with Rover.
Even BMW couldn’t get the best out of the MG and Rover brands and decided to get out, prompting an ill-fated management buyout by the Phoenix Four but the company later went under.
Rover disappeared but MG was revived by Chinese car maker SAIC.
However since being reborn MG has had limited success.
It no longer makes sports cars, instead launching a saloon, the MG6, which never really took off.
The company’s MG3 supermini has fared better and has more recently been joined by the GS crossover.
Another crossover, the XS, is on the way.
MG still has its design and engineering facility at Longbridge in Birmingham but car assembly, which was limited, was discontinued last year.