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Great Wall wants to buy Jaguar Land Rover and is in talks with India's Tata Motors.

2024-11-01 Update From: AutoBeta autobeta NAV: AutoBeta > Industry Report >

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AutoBeta(AutoBeta.net)02/13 Report--

Last year, Jaguar Land Rover lost more than $4 billion in a quarter, when it was rumored that Great Wall was in talks with Tata Motors to acquire Jaguar Land Rover.

In the third quarter of 2019 (October-December 2018), Jaguar Land Rover lost $4.06 billion on revenue of $8.06 billion, prompting Tata Motors to make the biggest loss in Indian corporate history. In the face of losses and for future projects not to stagnate, Jaguar Land Rover announced plans to raise $1 billion.

Last year, Jaguar Land Rover's sales and revenue plummeted, and Jaguar Land Rover also changed from Tata Motors' profit cow to a hot potato. In recent days, domestic media "online car Market" reported that the senior management of Great Wall Automobile revealed that Great Wall Automobile is currently in contact with Tata Motors to discuss the acquisition of Jaguar Land Rover.

Today, a number of media have contacted the executives of the two companies involved, including a number of Great Wall management officials said, "have not heard of it, but do not rule out this possibility." Jaguar Land Rover also replied, "I've heard about this from the media before, but I'm not sure," and even said it was "unfounded."

In 2008, Tata Motors bought Jaguar Land Rover from Ford. Soon Jaguar Land Rover made a profit. From 2010 to 2017, Jaguar Land Rover made an average profit of more than $1.4 billion per fiscal year in China. During this period, Jaguar Land Rover became the main source of income for Tata Motors. At one point, Tata Motor contributed more than 90% of its profits, but it had an impact on the decline in sales in China and Brexit last year. Jaguar Land Rover's sales in China have plummeted, while British factories have also implemented massive layoffs and shut down some factories to cut production.

India's Tata Motors released after-hours results for the third quarter of 2019 (October-December 2018), which showed revenue of 770 billion rupees ($10.8 billion) in the third quarter, compared with a net loss of 270 billion rupees ($3.9 billion) in a single quarter, of which Jaguar Land Rover lost $4.06 billion on revenue of $8.06 billion.

Jaguar Land Rover began to decline in the second half of last year, and Great Wall is now offering a takeover at a good time. Great Wall Harvard is a brand that only does SUV, and Land Rover, which claims to be a cross-country family, must meet the appetite of Great Wall. By the end of 2018, the cumulative global sales of Harvard SUV exceeded 5 million vehicles, becoming the first professional SUV brand of 5 million clubs in China, while Great Wall is very ambitious. In January this year, Great Wall officially launched Harvard 5-2-1 globalization strategy-- using five years to achieve annual sales of 2 million. Become the first professional SUV brand in the world.

In addition, according to the plan of the Great Wall, Harvard plans to launch 20 global products with the leading technology of the new four modernizations by 2023, and new energy models will exceed 60%. Among them, Harvard H6 and F7, as flagships, aim to become one of the top 10 SUV in the world. Among the new energy models, Harvard hybrid high-voltage HEV products will be mass produced in 2021, and Harvard hydrogen-powered SUV will be unveiled at the Beijing Winter Olympic Games in 2022.

The cumulative sales of Great Wall Motor in 2018 was 1.053 million, down 1.6% from the same period last year, of which 766100 under the Harvard brand were down 139500 from the same period last year. The total operating income of Great Wall Motor in 2018 was 99.469 billion yuan, down 1.68% from 2017; the operating profit was 6.426 billion yuan, up 9.76% from the same period last year; and the net profit belonging to Great Wall shareholders was 5.354 billion yuan, up 6.51% from the same period last year. Great Wall has set a sales target of 1.2 million vehicles in 2019, saying it is a comprehensive goal based on macroeconomic development, overall demand in the automotive industry and the company's new product launches.

The Great Wall has always been ambitious, and Jaguar Land Rover is a huge temptation for the Great Wall, which can not only help it move faster to become the No. 1 SUV in the world, but may also be able to break through with the help of Land Rover Jaguar. Geely Li Shufu once said that there will be only two or three traditional car companies in the future, and Marchionne has made similar remarks. He believes that after a new round of shuffling, there may be only a few car companies left in the world. When Fiat Chrysler was looking around for a buyer in 2017, Great Wall was interested in buying the Jeep brand. It is said that Great Wall offered $20 billion to buy Jeep, which exceeded the total market capitalization of FCA at the time of $19.207 billion, but FCA refused because of lack of money.

Great Wall Motor is listed in both domestic A-shares and Hong Kong shares, with a total market capitalization of 120.9 billion in domestic A-shares and 92 billion in Hong Kong H-shares. The total market capitalization of the two is more than 200 billion yuan. No matter Jeep or Jaguar Land Rover, Great Wall wants to complete the acquisition is undoubtedly "snake swallowing elephant", but there are such cases, Geely's successful acquisition of Volvo is an example, so little money is never a fundamental problem, not to mention Great Wall is not short of money.

Great Wall executives have revealed that Great Wall is in contact with Tata Motors to discuss the acquisition of Jaguar Land Rover. If the Great Wall succeeds in winning Jaguar Land Rover, it is possible that Wei Jianjun and his Great Wall will be number one in the SUV market, and it will also be an opportunity for Jaguar Land Rover to make a big comeback.

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