Tata Motors has managed Jaguar Land Rover wonderfully. Could it do the same with Maserati and Alfa Romeo?
In this changing world that puts upmost priority on the value of ticker symbol X, Y, or Z, is enough really ever enough? Not really. Not even if you've managed a miracle comeback like Jaguar Land Rover. The British automakers were sold to India's Tata motors back in 2008 and the rest, as they say, was history. The gorgeous Jaguar F-Type and a boom in SUV sales kept Jaguar Land Rover well-fed and coaxed the F-Pace off the drawing board, and all have been a symbol of the brand's resurgence.
And even with the electric Jaguar I-Pace SUV around the corner, which will follow the all-new Land Rover Range Rover Velar into this highly competitive battlefield and do well by all predictions, sources close to the matter told Bloomberg that JLR is already thinking about its next move. That would be the acquisition of another luxury brand or two, made in order to avoid stagnation, grow its portfolio, and of course, expand the revenue stream. Tata Motors already gets 78% of its revenue from luxury brands according to Bloomberg, and bolstering that number requires adding brands to the mix since it'll take time to get Jaguar and Land Rover selling as many cars as its parent company is looking it to sell.
Naturally, upon hearing this news, our matchmaking instincts kick in and think about Maserati and Alfa Romeo. The two FCA automakers have been a point of focus fir CEO Sergio Marchionne, who has been trying to sell them off so FCA can focus on high volume vehicles. This could end up being a match made in heaven. Both Maserati and Alfa Romeo are well-known brands with rich history and respected badges. Under FCA's stewardship, it has been proven that both brands can be interpreted in attractive and practical modern renditions that end up being competitive high performers in their respective segments. On the other hand, Tata Motors proved that it can manage troubled and storied luxury brands well while preserving heritage.
Given what Tata Motors has done with Jaguar and Land Rover, it'd be one of the few auto giants we'd feel comfortable entrusting two of our favorite Italian brands to. In addition to shopping for new luxury automakers, it's worth noting that JLR is also looking to buy various tech companies that will help in its pursuit of next-generation vehicle technology, including full autonomy. If JRL keeps playing hardball like this, it may soon find itself among the ranks of its larger peers that carry German accents. Not that it doesn't have its work cut out for it.