Jag-Alfa tie-up mooted in Tata deal (2008)

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Motor Industry

07 January 2008 15:32

If, as expected, Tata buys Jaguar-Land Rover in the coming weeks, there are some potentially intriguing industrial consequences. Like Jags being co-developed alongside Alfa Romeos. Just imagine the next 169 exec being based on the sublime new XF.

It’s not as far fetched as it might sound. Fiat Group and Tata officially joined forces in October 2007 to create an Indian joint venture company with a capacity to produce 100,000 cars a year. The arrangement will eventually see the Fiat Palio, Punto and Linea built alongside the Tata Indica-replacing V3 supermini (the V2 was sold in the UK as the CityRover) – and will extend to the Indian company marketing Fiat’s entire range in its lucrative home market.

The joint venture also currently extends to the development of Tata’s upcoming ground-breaking ‘one-lakh car’ (a budget car to sell for the equivalent of £1200) as well as the Fiat Palio replacement. However, Tata’s likely purchase of Jaguar/Land Rover from Ford opens the likelihood of the joint venture extending significantly upmarket – perfect timing as, alongside China, India is one of the world’s fastest-growing car markets.

Fiat was one of six potential bidders for JLR, but did not extend that to an official bid. But the interest was there, and it’s possible that joint venture discussions between Fiat and Tata are now embracing Jaguar and Land Rover.

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