Troubled by losses, Jaguar bought Land Rover and turned it into profit – NNSP

Mumbai The most interesting and inspiring story of Ratan Tata’s life is related to the acquisition of Jaguar-Land Rover. This incident not only reflects his business acumen but also highlights his calm and humble nature. The story dates back to 1999, when Tata Motors launched its first passenger car, Tata Indica. This car was not as successful in the Indian market as was expected, due to which the company had to suffer heavy losses. At that time Ratan Tata thought that perhaps the passenger car business was not the right move for Tata, and he decided to sell it. For this purpose he went to Ford Motors and proposed to sell his company. When Ratan Tata and his team reached America to meet Ford executives, they did not receive a good welcome there. Ford executives spoke ill of Tata Motors and asked, why should you enter the passenger car business? This was a big mistake for you. We are doing you a favor by buying it. Ratan Tata and his team were very disappointed by that insulting behaviour. They returned without making a deal, but Ratan Tata tolerated this insult internally and did not say anything.

Time passed and circumstances changed. In 2008, during the global financial crisis, Ford was forced to sell its iconic brand Jaguar-Land Rover. Then Ratan Tata decided to buy Jaguar-Land Rover from the same Ford. This was the same Ford that had humiliated Tata Motors a few years ago. Ratan Tata negotiated with Ford and eventually acquired Jaguar-Land Rover for $2.3 billion. The interesting thing is that this time Ford Chairman Bill Ford told Ratan Tata, you have done us a favor by buying our company. This moment was very special for Ratan Tata, because he bought two prestigious brands from the same company which had once let him down. This incident reveals Ratan Tata’s foresight, patience, and his calm nature in business. He responded to the insult with humility and success, which is an inspiration for every entrepreneur.

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