Small Jags

[tgr]

The kind of people who buy jags like a bigger car

[DonkeyApple]

The Vambo said:

DonkeyApple said:

I do hope so. They are certainly doing well but TATA is having to suck them dry to finance their debt elsewhere.

Can a company that is investing $4 billion a year on product be described as being sucked dry?

Supermarkets announce they are hiring 1,000 new people yet head count remains static. Companies announce investment but use a number for PR purposes that adventurous inhouse accountants have pushed forward as the maximum theoretical value in gross terms over an extended period.

There is no £4bn of real investment. Can't be from just looking at asset values. Let alone looking at the finances of TATA, they couldn't get that.

JLR is a revenue cow at the moment and that revenue is coming out daily to cover TATA's obligations elsewhere.

There is obviously investment as not only do they want it to succeed and grow but as of 2011 it has become absolutely essential to the short term health of TATA to increase the growth and therefor book value of JLR. They saved JLR but just at the moment JLR is saving Uncle Jimmy's global conglomerate.

[The Vambo]

DonkeyApple said:

JLR is a revenue cow at the moment and that revenue is coming out daily to cover TATA's obligations elsewhere.

There is obviously investment as not only do they want it to succeed and grow but as of 2011 it has become absolutely essential to the short term health of TATA to increase the growth and therefor book value of JLR. They saved JLR but just at the moment JLR is saving Uncle Jimmy's global conglomerate.

I agree with it all, just not the Daily Mail style "bleeding dry" rhetoric.

[DonkeyApple]

The Vambo said:

DonkeyApple said:

JLR is a revenue cow at the moment and that revenue is coming out daily to cover TATA's obligations elsewhere.

There is obviously investment as not only do they want it to succeed and grow but as of 2011 it has become absolutely essential to the short term health of TATA to increase the growth and therefor book value of JLR. They saved JLR but just at the moment JLR is saving Uncle Jimmy's global conglomerate.

I agree with it all, just not the Daily Mail style "bleeding dry" rhetoric.

It's not 'bleeding dry' as in asset stripping or crippling cash flow. They are needing to draw out as much as possible but at the same time know that investment is important. It is a growing asset and more money in means more generated in the current phase. And that means a higher and higher book value which helps the group to retain their current credit rating.

Run the winners and you might escape the accountants forcing you to awl the losers before you can get them winning as well.

[Willy Nilly]

tgr said:

The kind of people who buy jags like a bigger car

But Jaguar is just a brand and people love brands. Look at Land Rover, The Evoke is not what most would consider a Range Rover, but it has a Range Rover Badge on it so sells well. Same as an Audi A3, that is a Golf/Octavia with some nicer plastics and people will happily pay a premium for it.

If JLR did a small Jag, which chassis would they use? I get the higher volume, lower margin thing, as long as they make the right car, with the right image and don't discount it too much it should be a winner. MINI hasn't done too bad for BMW and it now looks like a dogs dinner.