Tata Motors is working on a new organization of its automotive activities. The Indian group, which also owns Jaguar Land Rover, could in fact proceed with a spin-off of the company, in particular dividing the sector that deals with cars from the one that specializes in commercial vehicles. The objective is to make the most of the development of cars dedicated to private individuals and in particular to JLR's luxury brands, also with a view to a complete electric transition.
The future of Jaguar Land Rover
The commercial vehicle business and related investments will be housed in a single entity, as reported by Automotive News Europe and as explained by the Mumbai-based company itself. The so-called passenger cars division will include cars, electric models and all the related businesses, including Jaguar Land Rover itself. The path that will lead to the spin-off will however have to be subject to the approval of the Tata board of directors which will meet in the coming months with the process which could have a total duration of 15 months to reach the final approval. The decision, according to the Indian giant, will not have any repercussions on employees. Nothing will also change from an equity point of view for those who currently hold stakes within Tata Motors.
The plans for the batteries
“The three automotive business units now operate independently and deliver consistent performance,” explained Tata group president, N. Chandrasekaran. “This split will help them better exploit the opportunities offered by the market, improving their focus and agility.” This spin-off could be followed by a further one concerning the division that deals with the production of batteries.
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