Ford Sells Jaguar, Land Rover to India's Tata for $2.3 Billion
March 26, 2008

By Michelle Krebs

DEARBORN, Mich. — It's official. Ford Motor Co. announced Wednesday morning it has signed a deal to sell Jaguar and Land Rover to India's Tata Motors for approximately $2.3 billion.

When the sale closes by the end of the second quarter, Tata will pay $2.3 billion for Jaguar and Land Rover; Ford will deposit $600 million into the Jaguar and Land Rover pension funds.

Ford will continue to supply Jaguar and Land Rover with powertrains, stampings and other components in addition to a variety of technologies, such as "environmental and platform technologies," Ford's statement said. Those supply agreements are for varying time periods. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services.

Ford Motor Credit Co. will provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months, the automaker said.

Ford said in its statement it expects the sale to close by the end of June, following "customary closing conditions," including receipt of regulatory approvals.

Ford CEO Alan Mulally said in the automaker's statement that Jaguar and Land Rover are "terrific brands." He added: "We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata’s stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Co. that delivers profitable growth for all."

In the statement, Ratan N. Tata, chairman of Tata Sons and Tata Motors, said: "We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business."

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