Analysts Think BMW Should Buy Jaguar Land Rover From Tata

These are interesting times we live in, especially for the automotive industry. Current issues range from Brexit woes to sales dipping in China, where trade tensions have affected profits.

However, analysts from Sanford C. Bernstein believe they see a way for two automotive giants to help each other out. Their solution? BMW should buy Jaguar Land Rover from Tata Motors, reports Automotive News Europe.

“BMW is overcapitalized and awash with cash. It has run into the limits of growth for its product range and brand,” said analyst Max Warburton in a research note. “JLR is severely challenged, both operationally and financially, but could massively lower both its fixed and variable costs under the wing of a bigger partner.”

Purchasing JLR for 9 billion pounds ($11.2 billion) could boost BMW’s earnings by 20%, added Bernstein. It would also contribute almost a quarter to the Bavarian automaker’s volumes. Yet, “Tata would need to swallow its pride to sell.”

Still, a purchase deal between BMW and JLR could also turn out to be “emotionally complex”, seen as how BMW has previously owned Land Rover back in the 1990s, which was a “traumatic period for the Bavarian company and there are executives in Munich who are still emotionally scarred by the experience,” wrote Warburton and his colleagues.

Also read: Jaguar Land Rover Developing Innovative 3D Head-Up Display

BMW is currently working through a $14 billion savings plan, while JLR is undergoing a 2.5 billion-pound ($3.1 billion) savings program and cutting 4,500 jobs.

It’s also worth mentioning that the two companies have recently decided to work together on the development of next-generation electric drive units.

“With Jaguar Land Rover, we found a partner whose requirements for the future generation of electric drive units significantly match ours. Together, we have the opportunity to cater more effectively for customer needs by shortening development time and bringing vehicles and state-of-the-art technologies more rapidly to market,” stated Klaus Fröhlich, Member of the Board of Management of BMW AG, Development, earlier this summer.

  • A Brown

    They could even bring Rover back haha
    On a serious note, it could really benefit both, although with JLR, Mini & RR in the same group is it too much British for the Bavarians right as Brexit hits

    • donald seymour

      Sounds kinda like a crude ironic joke.

  • TheBelltower

    BMW already owned Land Rover. And they discovered, as Ford and Tata also did, that British car companies are incredibly difficult to operate because of scale, labor laws and politics. The prestige is a thin veneer that is apparently not worth the effort.

  • Elmediterraneo

    I think that BMW is already doing enough in Britain with Mini and Rolls-Royce.

  • Charles Chin

    Nah…then it wouldnt be a true ‘English’ anymore……you know……’if it doesnt break down it ain’t a Range Rover’ thinggie.

    • donald seymour

      Well, apparently BMW’s rubber hoses dry rot in three to four years. (Quoted from Scottie Kilmer) So, there you go for your British reliability.

      • Dan P

        The Germans are already running JLR so why not.

      • Matt

        Kilmer that raving loon?

        • donald seymour


    • XtremWize

      Remember that BMW is the owner of “English” Rolls Royce and MINI …

      • Harry_Wild

        Rolls Royce is handmade and reliability is good. Each are custom ordered RRs. Mini are junk!

  • Romain AA

    PSA recently showed interested in such a move on JLR. Tata turned a blind eye.

    • boo boo the fool

      that’d be interesting actually, and it would help them get into America more seamlessly

  • Jarosław Kotowicz

    I don’t see any sense of buying two premium brands by another.

  • nastinupe

    BMW already unloaded Land Rover once, why would they repurchases the same company again? Apparently it’s not worth the trouble.

  • PK

    why can’t mercedes benz buy jaguar and land rover? lol

  • SteersUright

    Lord knows if BMW bought them they’d become much higher quality cars. Range Rovers brief moment of excellent was when they had BMW V8’s for a short while before becoming the unreliable heaps they are today. BMW has also become primarily an SUV maker anyway.

  • Harry_Wild

    BMW own them before Ford! Why would they own them again? Created more problems for both companies. Make more sense for Toyota or Honda to buy JLR and fix the reliability problems for once and for all!

    • Thetruthísntalwayspopular

      What’s in it for Toyota or Honda tho?

    • Matt

      Toyota and Honda buying them makes even less sense – especially the differences in corporate culture. It would never work (and Honda has been there before…)

  • Rocket

    Just run BMW. Invest that money in your own products. Maybe hire a designer that knows what a tasteful grille looks like.

    • benT

      Put the money back into farming and agriculture for European countries and neighbors.
      Also to develop food production in countries from where the massive southern migration is coming.

  • Smith

    This would be the very worst thing that could ever happen to JLR and would be the death of the brands. Look at Mini and Rolls, two brands that have suffered massively under BMW. Please leave well enough alone.

    • Astonman

      Can you explain about Mini and Rolls?

    • Thetruthísntalwayspopular

      Eh? Rolls has survived to offer the best and most diverse range of cars it’s ever had. The new Phantom is the standard of the world.

  • onthetrack

    NO! – Just no! I’m all for these companies collaborating on EV tech and possibly shared platforms / architectures for compact vehicles ( which has been rumored ) that are engineered for the characteristics of each brand but let these two companies stay independent and excel at their own businesses and products.

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