Tata Motors look for more engines from Ford

The largest automobile company of India, Tata Motors is looking for more engines from the Ford Motor Company. The company needs these engines for its JLR (Jaguar and Land Rover) products to match production when the company begins its assembly operations in the Asian region for the two luxury brands. In fact, Tata Motors is on its way for establishing two assembly plants, out of which, one will be set up in China and the other one in India.

The Michigan, US-based company, Ford Motor has also been asked to support and bring up the  additional volumes which may increase due to the beginning of the two new units of the company. Ford has been the owner of Jaguar Land Rover in the past before JLR was sold to auto major Tata Motors in the year 2008 . JLR was sold to Tata Motors for $2.3 billion. At present, Ford Motors Company is in an agreement with Tata Motors, the Mumbai-based auto player for the supply of engines for JLR. C Ramakrishnan, chief financial officer, Tata Motors, stated that at present, Ford is providing just more than what the company had contracted for but at the same time, the requirement of Tata Motors is even higher than what it is getting from Ford. Tata Motors believe that Ford has got some plans of ramping up its production so that it may handle the additional volumes.

Apart from this agreement, Ford has got various other contracts with Tata Motors for the engine supply and they have different time lines, some of which extend beyond the time of 2013. Also, Tata Motors is going through the procedure of providing the estimated engine volume to Ford Motor Company for the year 2013. Ramakrishnan also commented that  if required, the company might also look for some alternate sources for receiving engines. He further stated that the agreement of the company with Ford for the supply of engines cannot prevent Tata Motors from doing so (look for other alternatives). The new assembly plants of the company in Asia will manufacture Jaguar Land Rover models which will start with the premium SUVs (sports utility vehicles) of Land Rover.

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