Here in the UK, the automotive industry eagerly awaits the announcement of Jaguar’s and Land Rover’s (JLR’s) new owners. Hundreds of businesses and tens of thousands of jobs depend on the sustainability of these brands.

Everyone has an opinion on which of the prospective candidates would be the best new owner with the attention focused on the short term. It is accepted the new owners have to somehow generate the cash to fund desirable new models, technologies to meet increasingly demanding consumer and legislative requirements and the manufacturing, marketing and distribution to maximize global sales. The concern is over how this cash will be generated, over what period and at what cost to the UK economy. How long will Ford’s dowry last? How quickly must the new owners turn it around?

Hot favourite to win the prize is Tata whose friendly, unhurried approach to the acquisition and integration of the Korean Daewoo Truck company in 2004 and more recently the relatively painless takeover of Corus Steels is contrasted by the aggressive reputation of the feared private equity bidders. The UK has bitter memories of Phoenix Venture Holdings’ failure to revive MG-Rover whilst appearing to profit from the proceeds of its restructuring. But does Tata have deep enough pockets to take a characteristically relaxed approach on this particular deal?

As seen in the case of MG-Rover; the severity of the short term pain, or the lack of it during restructuring does not predict long term success or survival. Regardless of which bidder is successful and their approach to stem losses and generate cash; it is inconceivable that JLR’s engineering, manufacturing and supply chain will not remain substantially in the UK in the short term. In the long-run the winning strategy will be based on collaboration, consolidation and excellence in producing and selling new models in profitable volumes. That seems quite logical and straight forward, but it has been an enigma for most of the world’s largest car manufacturers over the last 10 years or so, except of course the extra-ordinary Toyota. But it is a strategy JLR’s new owners must implement successfully.