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Jaguar asks Ford to boost engine production due to sales spike

by Mark Kleis

After a substantial - and somewhat unexpected - surge in sales last quarter, Tata Motors is begging Ford to increase production of engines for its Jaguar brand.

When Ford Motor Company sold Jaguar Land Rover in 2008 to Indian automaker Tata Motors, a deal was made that had Ford supplying some of the motors used in Jaguar Land Rover vehicles as late as 2019.

Now, as the majority of what once made up Ford's Premiere Auto Group is enjoying better-than-expected sales, Tata has requested an increase in engine production from Ford, according to Bloomberg.

Jaguar's recent product renaissance has required a new lineup of more competitive engines, and as a result of the improved driving dynamics and overall vehicle appeal, sales have outpaced previous estimates by Tata Motors. Ordinarily, better-than-expected sales are nothing but good news, but in the world of just in time supply chains, Tata is scrambling to make sure it will have enough motors to meet the surging demand.

Ralf Speth, CEO of Jaguar Land Rover, told Bloomberg that Ford is doing everything possible in order to keep up with the increased demand.

Jaguar Land Rover enjoyed a 63 percent jump in sales during Q2 2010 compared to the same quarter in 2009, with 57,153 vehicles sold last quarter.

References
1.'Tata's Jaguar Land Rover...' view