Acquisition of Jaguar by Ford - case study.
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CASE: Acquisition of Jaguar by Ford 1. Had Ford's risk been realized to be beneficial or a liability? Explain. In 1989, the ford Motor acquired Jaguar for $2.6 billion hoping that Jaguar will fulfill its longtime strategy in entering luxury car market. The first problem in this acquisition was caused by the competition between GM and Ford to buy Jaguar. Because of this competition, Ford had to pay an unreasonable and high price for it. Problems did not stop after this acquisition. After Ford took over Jaguar in 1989, the sales continually declined. This is partly because the recession of global economy, the increase in luxury car tax in US by 10%, and the increase of oil prices. Also the existence Japanese luxury cars in the U.S. like Lexus, Infinity and Acura made harder the Jaguars to be sold. This is because Jaguar was very expensive compared to those...

