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[Throwback] When Ford humiliated Ratan Tata but responded with “merit”; Watch the video | Rare Techy

Rare TechyNovember 2, 2022

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Flashback When Ford humiliated Ratan Tata but responded with merit, watch the video

[Throwback] When Ford humiliated Ratan Tata but responded with “merit”; Watch the video.

New Delhi: There is no denying the fact that Tata Sons Chairman Emeritus Ratan Tata is admired and respected across India and the world not only for his business acumen but also for his humility. Tata has not just once but time and again proved what a humble person he is, even to the man who ‘humiliated’ him.

More than two decades ago, Tata and his team faced “humiliation” when they sold the group’s fledgling car business to Ford in 1999, but the wheel of time turned just nine years later. This time, Tata responded with “a great favor” and not “humiliation”.

The Tata-Ford story

In an attempt to sell his failing car business, Ratan Tata flew to the US with his team to meet Ford’s then chairman, Bill Ford. Tata was reportedly humiliated at this meeting by Ford, who said, “You have no idea why you started a passenger car division in the first place. We’re doing you a big favor by buying your car division.”

However, the Tata team decided not to sell their car business to Ford and returned to Mumbai. Poor response to its initial hatchback, the Indica, had prompted Tata Motors to sell the car business to Ford Motor within a year of its debut in 1998.

Businessman and head of RPG Enterprises Harsh Goenka shared a video detailing the Ford-Tata story on his Twitter account on Monday. “Ratan Tata’s response to being humiliated by Ford 👏👏👏,” he tweeted.

The video has garnered over 20,000 likes and over 4,000 retweets.

Tata worked on their auto business, focusing on Tata Motors. Over time, the car manufacturer became a successful company all over the world and just nine years later after the Ford incident, by 2008, Tata Motors had the best selling cars in the market.

The wheel of time turns

The clock turned full circle so that this time Ford was struggling to generate sales revenue. In 2008, trying to turn a profit on its sales, Ford approached Ratan Tata to sell its auto business. Although the “humiliated” Ratan Tata could have done to him what Ford did to him. He did, however, offer to buy Jaguar and Land Rover production cars from Ford, their worst selling cars at the time.

“You’re doing us a big favor by buying JLR, thank you,” Bill Ford told Ratan Tata in a meeting, and in June 2008, Tata completed the deal to acquire Jaguar and Land Rover from Ford in a $2.3 billion cash deal. .

Within a few years of the buyout, JLR made a dramatic turnaround and is now the mainstay of Tata Motors’ finances.

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