Ford Motor Co is dumping its Jaguar and Land Rover brands in order to concentrate on its lagging American operation. So far, the lucky winner is looking to be India's Tata Motors. The winning bid is expected to be about 1 billion pounds ($2 billion).
"Tata is the front-runner in a race that includes Mahindra & Mahindra, a fellow Indian car group, and One Equity, the American buyout group.
Tata is set to roll out a 100,000 rupee ($2,400) “People's Car†next year.
If Ford chooses Tata, it will be an historic moment for the car industry, marking the first time that a major Western car group has been bought by an Indian company."
Implications - The face of today's market is rapidly changing, with technology making the world a very small place. Thus, companies must look to other ethnicities and cultures for success, as multiculturalism takes over North America.
Ford Dumps Jaguar and Land Rover For Indian Brand
100,000 Tatas in 2008
Trend Themes
1. Indian Automotive Brands - There is a growing preference for Indian-made vehicles, creating an opportunity for Indian automotive brands to expand globally through strategic acquisitions.
2. Multicultural Business Strategies - As multiculturalism becomes more prevalent, companies must develop inclusive strategies that appeal to a diverse customer base, creating opportunities for consultants and agencies specializing in this area.
3. Affordable Automobiles - The emergence of affordable vehicles like Tata's People's Car opens up opportunities for new market segments and customization options for car manufacturers.
Industry Implications
1. Automotive Industry - The acquisition of established Western automotive brands by Indian companies like Tata Motors is disrupting the traditional hierarchy of the global automotive industry.
2. Consulting Industry - Companies need help adapting to the cultural and ethnic diversity of the current market, creating opportunities for consulting firms and experts in multicultural business strategies.
3. Customization Industry - The emergence of affordable, simpler vehicles like Tata's People's Car opens up customization opportunities, creating disruption and innovation in the traditional auto industry through niche products and services.