Login
![]() |
![]()
|
![]() |
![]() |
2010 2011 BMW 5 Series Forum F10
![]() |
![]() |
Post Reply |
|
Thread Tools | Search this Thread |
09-19-2019, 12:31 AM | #1 |
Administrator
![]() 23009
Rep 19,884
Posts |
Would BMW Benefit From Purchasing Jaguar Land Rover? Some Analysts Think So
Would BMW Benefit From Purchasing Jaguar Land Rover? These analysts think so.
https://www.bloomberg.com/news/artic...bernstein-says Cash-Rich BMW Should Buy ‘Severely Challenged’ Jaguar: Bernstein September 18, 2019 NEW DELHI -- We need to talk about Jaguar Land Rover. That's the message from Sanford C. Bernstein analysts, who say BMW should buy the British luxury brand from India's Tata Motors. "BMW is overcapitalized and awash with cash. It has run into the limits of growth for its product range and brand," analysts including Max Warburton wrote in a research note Wednesday. "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." The suggestion comes as Tata Motors' losses mount, with a sales slowdown in China and Brexit adding to its woes. BMW is also navigating trade tensions between the U.S. and China that have weighed on profit, and the unresolved political future of the UK, where it makes Mini and Rolls-Royce cars. Buying JLR for 9 billion pounds ($11.2 billion) could add 20 percent to BMW's earnings, according to Bernstein. It would also contribute almost a quarter to BMW's volumes, but "Tata would need to swallow its pride to sell," the analysts said. They also said the German automaker would have to be less conservative. A deal would be "emotionally complex" due to their former relationship, when BMW owned Land Rover and the wider Rover group in the 1990s, Warburton and his colleagues wrote. "It was a traumatic period for the Bavarian company and there are executives in Munich who are still emotionally scarred by the experience." Still, the logic for an acquisition is compelling, they said. BMW is working through a $14 billion savings plan and JLR is undergoing a 2.5 billion-pound savings program and cutting 4,500 jobs. The two already agreed to collaborate on their next generation of electric cars earlier this year. BMW has previously ruled out equity ties with the unit of Tata Motors. A representative for BMW in India said Wednesday that the company does not comment on speculation, while Tata Motors did not immediately respond to an email seeking comments. Tata Group bought JLR from Ford in 2008 for $2.3 billion. The Indian salt-to-software conglomerate has been exploring strategic options for JLR, including a potential stake sale, people familiar with the matter have said. Tata Group has denied that.
__________________
Check on the Latest BMW News
Become a fan of Bimmerpost Facebook Follow us on Bimmerpost Twitter Subscribe to Bimmerpost Youtube Channel |
09-19-2019, 06:57 AM | #2 |
Moderator
![]() 5460
Rep 18,444
Posts |
Land Rover has very high brand value, so that would at least appear to have the potential for high return on investment. Although there is marginal overlap with BMWs SAV lineup, Land Rover obviously has a much stronger reputation in off-road/overland circles, and covers segments that BMW does not (and probably could not effectively without creating another brand anyway). With the right product/feature mix and infusion of technology from BMW i, Land Rover could become a strong competitor next decade, especially with companies like Rivian and Bolinger priming different corners of the soon-to-explode off road electric vehicle market.
Jaguar, on the other hand, would seem to be little more than excess baggage. With due respect to what was once an iconic brand, it might be best for whoever becomes steward of JLR in the future to put this nameplate into deep sleep. |
09-19-2019, 10:13 AM | #3 |
Captain
![]() ![]() ![]() ![]() 451
Rep 941
Posts |
This will be the most strategic acquisition for BMW. Imagine the Range Rover Line up with the BMW platform and drivetrain, B58 and N63 engines?
It would make RR perfect.
__________________
"Beware of false knowledge; it is more dangerous than ignorance."
|
Appreciate
2
|
09-19-2019, 10:15 AM | #4 |
Major
![]() 595
Rep 1,192
Posts |
I'd say BMW could benefit from doing this as long as, in the process, they kill off Jaguar and just keep Land Rover. Then the next order of business would be for BMW to apply their reliability criteria to Land Rover to get Rover's reliability rankings up in the top 10. If that happened, along with BMW-like warranty and service, Land Rover would become a top selling vehicle. I've considered a full-size Range supercharged many times only to back out because of reliability and quality control issues. I am sure I am not the only one doing this.
__________________
~ 19 X6M
~ Prior BMW's - Too many to list here (25) |
Appreciate
8
M3 Adjuster8215.00 1230vani405.00 530iDriver1011.50 ALPINA_DREAMS39.00 KRS_SN79.00 BMWBIASED27.00 StavsM2C114.50 Simple1104.00 |
09-19-2019, 10:18 AM | #5 |
Major General
![]() ![]() ![]() 3703
Rep 9,348
Posts |
As hinted to in Post #1, I was surprised when BMW sold Land Rover to Tata some 20 years ago wondering if it was an effort to tank the brand for their own benefit.
__________________
Stable: F80 / AH3
Past: F80 ZCP / F22 M235i / E89 35is |
Appreciate
0
|
09-19-2019, 10:23 AM | #6 | |
.
2208
Rep 2,381
Posts |
Quote:
|
|
Appreciate
0
|
09-19-2019, 10:26 AM | #7 |
Major
![]() 595
Rep 1,192
Posts |
Perhaps you are right. I'm reading Jaguar's problems to be so sufficient that killing off the brand and focusing on making Land Rover a world-class brand would bring BMW the most profits. Also, if BMW made Land Rover very reliable, fixed the issues with the brand and fixed the technological deficiencies in the trucks, they could easily charge another 10-20k for the full size Range and people would pay it.
__________________
~ 19 X6M
~ Prior BMW's - Too many to list here (25) |
Appreciate
0
|
09-19-2019, 10:29 AM | #8 |
Colonel
![]() ![]() 1263
Rep 2,658
Posts |
Buy out only Land Rover brand.
__________________
Currently: 2020 Honda Civic & 2020 Porsche 911
Previous BMWs: 340i, 740i, 745Li, M3, M4 Previous Others: Audi, Ducati, Honda, Infiniti, Mercedes-Benz, MINI, Mitsubishi, Toyota, Volkswagen |
Appreciate
0
|
09-19-2019, 10:30 AM | #9 |
Major General
![]() ![]() ![]() 1469
Rep 7,827
Posts |
Fck No! Been there, done that.
Tata is desperate to offload those moneypit brands. They (Tata) probably paid the author to use some serious financial contortions in order to make it look good for BMW. The luxury market is crowded, time to cull the herd.
__________________
"Drive more, worry less. "
435i, MPPK, MPE, M-Sport Line |
Appreciate
6
|
09-19-2019, 10:31 AM | #10 |
Major
![]() 595
Rep 1,192
Posts |
I suspect part of why BMW is cash rich is because they keep figuring out ways to cut costs and charge more. I was upset that the ZF8 replaces the DCT in all of the new BMW's, but after having my ZF8 equipped X6M for 4 months, I have to admit that it is an excellent box and is programmed to feel very much like the DCT that was in my F80 and F82.
__________________
~ 19 X6M
~ Prior BMW's - Too many to list here (25) |
Appreciate
1
DK__LA137.00 |
09-19-2019, 10:34 AM | #11 | |
Major
![]() ![]() 238
Rep 1,062
Posts
Drives: 2017 M3 ZCP / 2017 RRS SC
Join Date: Aug 2012
Location: Naperville
|
Quote:
As for electronics, Land Rover would GREATLY BENEFIT from a merger with BMW. LR tech is basically Ford's interpretation of the Sync system on top of what LR had and is shit. Not to mention all the stupid features which LR implements in there own way which is super frustrating. The adopted some ford ideas like cutting all power once a car door is opened so you can't shut a window once the car is shut off and a door is opened. Or the stupid fact you cannot lock the car if anything is opened. So if you lock the door before your kid shuts the door it won't lock. The list just grows form this
__________________
![]() 17 M3 ZCP -- 2017 Range Rover Sport SC --RIP-- 12 X5 50i Sport -- 11 M3 DCT -- 2011 X5 50i(Lemon) -- 2008 550 Msport -- 2007 x5 4.8 sport -- 2004 545 sport -- 2002 x5 4.4 sport -- 2001 540i Msport ![]() |
|
Appreciate
8
Alpine300zhp594.50 zamboni508.00 ron_jeremy404.00 K-M370.00 rhk118416.50 Skeewiff0319.50 KRS_SN79.00 jusblazeee_f22299.00 |
09-19-2019, 10:35 AM | #12 | |
Major
![]() 595
Rep 1,192
Posts |
Quote:
__________________
~ 19 X6M
~ Prior BMW's - Too many to list here (25) |
|
Appreciate
0
|
09-19-2019, 10:57 AM | #13 |
Brigadier General
![]() ![]() 1645
Rep 3,894
Posts |
BMW needs to take that money and use it for R&D to reduce plastic in their cars and or at least use Japanese plastic that lasts more than 5 years. They need to hire people from Denso to show them how to build a GD radiator, expansion tank, injectors, fuel pumps etc. They need to hire the best trim builders or at least buy a company that can show them how to build cars that last and are reliable. None of these companies will improve their reliability. They have already sold their souls to chase everyone down the suv path. If anything, maybe they can buy Porsche who can show them the proper placement of a nav screen in a sports car. Maybe they can also buy a car company like Toyota that can show them how to make cars that don't spin bearings and finally they can buy Audi to show them how to make good looking cars again.
So no, they shouldn't buy another company that doesn't bring something they need to the table. : ) |
09-19-2019, 10:59 AM | #14 |
Major
![]() ![]() 56
Rep 1,149
Posts |
The fact that Land Rover/ Range Rover isn't making an absurd amount of money right now in the age of crossovers and SUVs boggles the mind.
The trucks may have some value to BMW. Jaguar might have some overlap, but perhaps with a bit of re-strategizing it could work. Keep the Jaguar portfolio small, and focus a bit more on style and luxury to make it distinct from the BMW portfolio (and this is the direction Jaguar is already headed) You could even throw in a few interesting revival British roadsters into the mix.. BMW still holds the rights to Triumph! |
09-19-2019, 11:01 AM | #15 |
Lieutenant Colonel
![]() ![]() 981
Rep 1,871
Posts |
Maybe we'd finally see a double wishbone alu chassis 3 series if they can steal the class leading xe
__________________
F80 ZCP #itsoktobeAWonSS - ceramics, mpe, oe GTS hood, tractive suspension, eventuri, ps4s.....and a sunroof
|
Appreciate
0
|
09-19-2019, 11:26 AM | #19 |
6301
Rep 23,492
Posts |
jaguar no thanks.
LR, I could see it being ok if they fix all those mechanical issues they seem to constantly have
__________________
![]() BEFORE YOU BUY YOUR NEXT BMW, PM ME FIRST WE CAN HOOK YOU UP! Jimmy Bach:jbach@stevethomasbmw.com Cell:805-807-1989 If you have any issues getting a hold of Jimmy B PLEASE PM me, I'm available everyday till 545pm! |
Appreciate
0
|
09-19-2019, 11:32 AM | #20 |
Lieutenant
![]() ![]() ![]() 99
Rep 545
Posts
Drives: 2018 530e
Join Date: Sep 2010
Location: Pleasanton
|
Every owner of Jaguar has had to sell because of deep financial losses. On top of that, BMW unloaded Rover themselves back in the 90s. Learn from the past, don't do it.
__________________
2018 BMW 530e Alpine White | Black Napa Leather | Bone Stock
![]() |
Appreciate
0
|
09-19-2019, 11:36 AM | #21 |
Major
![]() ![]() 511
Rep 1,330
Posts
Drives: 2019 BMW 540i xDrive
Join Date: Nov 2018
Location: NYC
|
Cash rich and not buyback? put back in R&D and start catch up on electric vehicle!
|
Appreciate
1
SportySpice128.00 |
09-19-2019, 11:54 AM | #22 |
Lieutenant Colonel
![]() ![]() 912
Rep 1,689
Posts
Drives: F80 & F97
Join Date: Jun 2008
Location: Chicago
|
No, in my opinion too much risk to gain volume
oBMW is already leveraging trends towards utility vehicles with a full product offering X1 to X7 oBMW sold approximately 142k electrified vehicles in 2018 and expects this powertrain segment to account for up to 25% of sales in 2025 with nine electrified models available globally today and more to come oBMW already offers Level 1-2 vehicle autonomy in all production models and some with Level 2+. And BMW is part of an industry wide consortium with FCA, Intel, Aptiv, Continental, Magna, Mobileye and others to launch full autonomous technology into production vehicles by 2021 |
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|