Royal Bank of Scotland Group plc (ADR) (RBS), Bank of America Corp (BAC): New Owners of U.K. Banks and Automakers

Now Tata is in the position of working both the high and low ends of the market. Tata’s future will largely depend on the success of its lower priced offerings since the automaker is built mostly around its emerging market vehicles. However, by having vehicles with solid brand names at the top end, Tata has a more complete line to target a larger variety of customers. If Tata can develop a strong middle market segment then the automaker could more effectively sell higher priced cars to the same customers as they move through their lives earning higher incomes.

Changing companies, new owners

After a financial crisis threatened the health of the U.K. banking system, Lloyds and Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) have become partially government owned by the U.K. government is a manner similar to the American financial meltdown. Due to consolidation in the automotive industry, Britain’s automakers have been acquired by foreign companies and now comprise parts of Tata Motors and an investment fund. Investors in these companies need to be aware of what the new owners may have in store for them. Government policy may determine how Lloyds is sold off and whether Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) is nationalized and Tata Motors will continue to exert control over Jaguar and Land Rover. To invest in the banks, one can buy the common or preferred stock while factoring in the uncertainty of their company being partially government owned. But to invest in the automakers, one would have to buy shares of Tata Motors. In the second situation investors will have to decide for themselves whether the rest of Tata fits with their overall investment strategy.

The article New Owners of U.K. Banks and Automakers originally appeared on Fool.com and is written by Alexander MacLennan.

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