Today, we all know Tata Motors as one of the top-selling automakers in India. However, back in the 1990s, Tata Motors was struggling. It was at this time that Ratan Tata, who was the chairman of Tata Group, decided to sell the automotive division to Ford. However, as he went to meet Bill Ford in the USA for the sale, he was humiliated by Ford in front of his team. This particular day then became the turning point for Tata Motors.
Ratan Tata’s response when he was humiliated by Ford
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— Harsh Goenka (@hvgoenka) October 31, 2022
Harsh Goenka, who is the current chairman of RPG Enterprises, shared a video explaining the entire story that led to Tata Motors becoming the auto giant that it is today. The short video, shared on X, starts by mentioning that back in the late 1990s, Tata Group was facing substantial financial strain.
The primary reason for this strain was Tata Indica’s underperformance in the Indian automotive market. So, in order to reduce the losses, Tata Motors considered selling its passenger car division to Ford, following which a meeting between Ratan Tata and Ford’s chairman, Bill Ford, was arranged in 1999.
Bill Ford humiliated Ratan Tata
What happened at the meeting was that Ratan Tata was questioned by Bill Ford on his decision to enter the car business. Ford, in a condescending tone, stated that if Tata Motors lacked the expertise to succeed in the passenger car segment, why did they start manufacturing cars?
Now, any other person of the calibre of Ratan Tata would have reacted angrily. However, Ratan Tata, being the gentleman he was, sat silently. Soon after the meeting ended, Mr. Tata, on the same day, flew back to India with his entire team.
Ratan Tata’s long-term plan
After the humiliating meeting with Ford, Ratan Tata made up his mind and decided not to sell Tata Motors’ passenger car division. Instead of taking the easy way out, he became determined to transform Tata Motors. For this, he shifted the company’s focus to quality and innovation.
As for the results, this new focus led to the release of new models. Following this, under his guidance, Tata Motors worked on improving its brand reputation and product offerings, slowly but steadily building customer trust.
Tata’s full-circle moment
As we know, hard work and determination can change everything and flip the table. So, this is exactly what happened with Tata Motors and Ratan Tata. By 2008, Tata became a powerhouse in India, and its business was booming.
However, the American automotive giant, Ford Motor Company, was struggling and experiencing financial challenges, especially with its Jaguar and Land Rover brands, which were underperforming.
Now, what happened was Ratan Tata, at this point, proposed buying Jaguar and Land Rover. This was a deal that Ford desperately needed at the time. So finally, a deal was finalized, and for the acquisition, Bill Ford, along with his team, flew to India.
Most people, again in Ratan Tata’s place, would have taken revenge for their humiliation. However, Ratan Tata, being the gem he was, kept his calm and treated Ford with kindness. For this, Ford expressed gratitude and stated that Tata was now helping Ford.
Tata Motors’ role in the success of Jaguar Land Rover
Many people at the time questioned Ratan Tata’s decision to acquire JLR. Mr. Tata, in his interviews, revealed that there were many people who were skeptical of this decision. However, over the years, Tata Motors turned the brands around by investing in design, technology, and new models.
Today, although Jaguar may be struggling globally, Range Rover has managed to reach new heights. The company, with its latest-generation Range Rover, Range Rover Sport, and Defender lineup, is ruling the luxury SUV market in India as well as international markets.
The post How Ratan Tata Responded To Ford’s Humiliation: Epic Story On Jaguar-Land Rover Buy first appeared on Cartoq.
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