Reverse Colonialism

India's Tata Motors in the lead to buy Jaguar and Land Rover

Ford Motor Company (NYSE: F) announced that it had chosen to move into more "focused" talks with India automaker, Tata Motors Ltd. (NYSE: TTM) over a possible sale of its Jaguar and Land Rover units.

Ford, which sold its controlling stake in its Aston Martin unit last year for $931 million in cash and stock, has been searching for the right suitor for Jaguar and Land Rover. No details on the Tata discussions, but the bids were running between $1.5 billion and $2 billion. Ford spent a combined $5.2 billion for Jaguar and and Land Rover when it first took over the units.

Where's the Reverse Colonialism? Let's look at this for a moment and let it soak in.

British companies sold to Americans, then sold from Americans to the Indians. One of the best known British brands being bought by one of the old colonies, and then sold to another old colony.

The English workers toiling for Indian managers and owners. The management is coming from a 'poor country' telling the 'rich country' - in this case the English labor force - how to run the business. This is a major milestone and reverses about 4 centuries of the established Imperialism/Colonialism system. It has happened before, with tea - however this is a bigger deal and is more entertaining. Especially for my Indian friends.

It also shows that the free market society, while it has flaws, is still, "the best thing for humanity since the Enlightenment." -Alan Greenspan. The idea that an oppressed former colony is now telling their former Empire how to run their business is an example of how a free market can create a level playing field (that's with a lot of patience though.)