Ford Linked to Jaguar, Land Rover Despite Sale to Tata
February 27, 2008

Ford, which is expected to sign a deal to sell its Jaguar and Land Rover brands to India’s Tata Group next week, will continue to be linked to the luxury brands for years to come, according to a news report.

Ford plans to sell its entire stake in the brands as well as facilities and technology to Tata for $2 billion. But Tata has signaled to British labor leaders that, under the deal, it intends to continue using engines and other parts currently built in Ford-owned plants in the U.K., the Wall Street Journal reports. Tata could continue to get the engines from Ford for the next five years, and perhaps longer, a source told the newspaper.

Ford paid $2.5 billion for Jaguar in 1989 and $2.75 billion for Land Rover in 2000.

Analysts noted to the paper that although purchasing Jaguar and Land Rover will give Tata — known for small, cheap cars such as the $2,500 Tata Nano — the know-how and luxury-car expertise, it can’t afford to stumble over technical issues, which makes continued ties with Ford and existing suppliers critical.

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