Post on 17-Jun-2015
Subprime mortgage
loan+
Adjustable-rate
mortgages
House demand
increases
Housing
bubble
Mortgage Loan
Mortgage-backed
securities
Investors
Premium
Credit Default Swaps
Housing
bubble
Housing
bubble
House prices get too high
House prices get too high
House builders increase
production
House builders increase
production
Supply > DemandSupply > Demand
House prices drop
House prices drop
Subprime Mortgage
Crisis
$500,000
MBS
CDS
Main providers of capital
Credit Crunc
hGlobal
Financial Crisis
2.1) Trade and trade price
2.2) Equity investment and foreign direct investment (FDI)
1) World wide slumping in Automobile’s sales and
production
TableWorld car sales and production by sub-regions 2007-2009
( change in %, year on year basis)
Source: Automotive World Automotive Passenger Car OEM Quarterly Data Book, Q2, 2009. Reclassified data calculated from rounded off data Note: #) NAFTA and South America figures (include light trucks)
2) Facing bankruptcy
3) Automotive firms’ actions
The decline of industrial production, retail sales, world trade, and consumer confident index in between year 2008 and year 2009
Unemployment rate
Government policies
The deficit in the fiscal balance for those developing and developed countries and also the increasing of public debts.
Source: Wikipedia
List of countries by Gross National Income per capita at purchasing power parity in 2009:
Overpay for the acquisition and fail in gain desired benefits.
Create synergies in the capabilities between the two companies
Acquisition being done during financial crisis and automobile crisis
Anyway, Jaguar and Land Rover start generate income for Tata Motor in year 2010