Ratan Tata's Sweetest Revenge: When Ford Insulted Tata And Tables Turned A Decade Later

Ratan Tata, Chairman Emeritus of Tata Sons, passed away on Wednesday at Breach Candy Hospital in Mumbai at the age of 86. Ratan Tata, one of India’s most respected and beloved industrialists, led the Tata Group to unprecedented heights and made significant contributions across various sectors, including philanthropy. Born on December 28, 1937, in Mumbai, he currently serves as the Chairman of the Ratan Tata Trust and the Dorabji Tata Trust, two of the largest philanthropic organizations in India promoted by the private sector.

Tata served as Chairman of Tata Sons, the holding company of the Tata Group, from 1991 until his retirement in 2012. Following his retirement, he was named Chairman Emeritus of Tata Sons. In recognition of his remarkable contributions to the nation, he was awarded the Padma Vibhushan, India's second-highest civilian honor, in 2008.

While Tata is respected for his vision and impeccable business acumen, there was a time when Ford Motor Chairman humiliated him for failed car business. 

Tata Indica Launch

Tata Motors, known as Tata Engineering and Locomotive Co in 1990s, launched its first car Tata Indica in India. However, the car business did not thrive as the company faced significant losses. Thus, the company decided to sell its passenger car division. Tata Motors was on a lookout for buyers and they reached out to Ford Motors in 1999 for the deal. Ratan Tata travelled to Detroit to finalize the deal with Ford Chairman Bill Ford.  However, during the conversation, Bill Ford made a humiliating remark that Ratan Tata felt demeaning. Bill Ford reportedly told Tata, "You do not know anything about passenger cars, why did you start the business at all? We are doing you a favor by buying your car division."

Ratan Tata then decided to abort the deal and focus on improving the Indica model. His hard work changed the company's fortune and Tata Indica's improved version became an instant hit and remains popular even today. 

The JLR Acquisition

Almost a decade later in 2008, Ford Motor was facing financial troubles amid the global financial crisis. The car manufacturer decided to sell its two brands - Jaguar and Land Rover (JLR), which were underperforming. Ironically, Tata Motors, which had been insulted by Ford nine years earlier, emerged as the buyer. Tata Group then led by Ratan Tata successfully acquired Jaguar Land Rover (JLR) for $2.3 billion the same year. After the acquisition, Bill Ford reportedly said to Ratan Tata, "You are doing us a big favour by buying JLR."

This completed Ratan Tata's unsaid revenge. Tata then worked on the two brands and revived the Jaguar and Land Rover by investing in innovation and design.