In 1999, Tata Motors considered selling its passenger vehicles division to Ford Motors due to the poor performance of the Tata Indica, the car brand on which the company had pinned huge hope. Ratan Tata and senior Tata Motors officials went to the US to discuss the potential sale.
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During the meeting in Detroit, Ford officials expressed their interest in buying the division. However, the meeting turned unpleasant as Ford officials reportedly told Tata representatives, “You do not know anything, why did you start the passenger car division at all,” and suggested they were doing Tata a favour by considering the purchase.
The Tata team returned to India following this meeting. Pravin Kadle, a Tata Group veteran, recounted the incident at a public event at a later time, describing it as “humiliating”.
In contrast, by 2008, Tata Motors successfully acquired Ford’s Jaguar Land Rover (JLR) division for $2.23 billion. Ford Chairman Bill Ford acknowledged the significance of this deal, stating, “You are doing us a big favor by buying JLR.”Also Read: Ratan Tata’s ambitious Nano dream after seeing Indians sandwiched on scooters
The acquisition marked a major turnaround for Tata Motors. The company has since hugely strengthened its position in the global car market, and currently secures a substantial part of its revenue from JLR.