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Report: India's Mahindra out of race for Ford brands
MUMBAI (Reuters) -- India's Mahindra & Mahindra has decided not to bid for Ford Motor Co's Land Rover and Jaguar brands, the Economic Times reported today, citing investment banking and industry sources.
Mahindra had pulled out because there was uncertainty about the supply of powertrains from Ford after the deal, and concerns about the brands' ability to meet stricter emission norms proposed in the European Union from 2012, the paper said.
A team from Mahindra had visited the factories in Britain and had been a part of the discussions with the management, it said.
A spokesman for Mahindra declined comment.
The Financial Times reported last month that Mahindra was more interested in Land Rover, but Ford wanted to sell the two brands together.
Local Indian media and auto analysts have said Land Rover would fit Mahindra's portfolio of products better, as it would address its need for a premium SUV brand above its Scorpio SUV.
Ford has said it plans to have more details on the sale of Jaguar and Land Rover by the end of the year or early 2008.
The chairman of Tata Motors Ltd, Mahindra's bigger rival, said last month the company was interested in the Ford brands.
A spokesman for Tata Motors, India's leading commercial vehicle maker and No. 3 carmaker, today said he had no further comment on the matter.
A Fiat spokesman said this week the Italian company was ready to provide technical support to Tata Motors, a joint-venture partner, in its bid.
Local media have reported that Tata Motors has appointed Citibank and JP Morgan Chase as advisers.
Mahindra, India's top utility vehicle and tractor maker, had partnered Ford in the U.S. company's Indian foray more than a decade back. It now has a joint venture with French carmaker Renault to make the no-frills Logan sedan in India.
Mahindra had pulled out because there was uncertainty about the supply of powertrains from Ford after the deal, and concerns about the brands' ability to meet stricter emission norms proposed in the European Union from 2012, the paper said.
A team from Mahindra had visited the factories in Britain and had been a part of the discussions with the management, it said.
A spokesman for Mahindra declined comment.
The Financial Times reported last month that Mahindra was more interested in Land Rover, but Ford wanted to sell the two brands together.
Local Indian media and auto analysts have said Land Rover would fit Mahindra's portfolio of products better, as it would address its need for a premium SUV brand above its Scorpio SUV.
Ford has said it plans to have more details on the sale of Jaguar and Land Rover by the end of the year or early 2008.
The chairman of Tata Motors Ltd, Mahindra's bigger rival, said last month the company was interested in the Ford brands.
A spokesman for Tata Motors, India's leading commercial vehicle maker and No. 3 carmaker, today said he had no further comment on the matter.
A Fiat spokesman said this week the Italian company was ready to provide technical support to Tata Motors, a joint-venture partner, in its bid.
Local media have reported that Tata Motors has appointed Citibank and JP Morgan Chase as advisers.
Mahindra, India's top utility vehicle and tractor maker, had partnered Ford in the U.S. company's Indian foray more than a decade back. It now has a joint venture with French carmaker Renault to make the no-frills Logan sedan in India.
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