Tata Motors buys Jaguar, Land Rover from Ford for $2.3bn
Tata Motors confirms $2.3 billion acquisition of Jaguar and Land Rover from Ford
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Wednesday, 26, Mar 2008 01:08
India's Tata Motors has confirmed a $2.3 billion (£1.15 billion) deal to acquire Jaguar and Land Rover from Ford.
The deal, which is subject to regulatory approval, will be finalised by the end of next quarter and incorporates brands, plants and intellectual property rights.
Ford will contribute $600 million (£301 million) towards the two marques' pension plans, Tata added.
Ratan 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."
He said Tata had "enormous respect" for the two brands and was committed to preserving their "heritage and competitiveness".
"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," Ratan Tata added.
Alan Mulally, president and chief executive officer of Ford, said Tata was acquiring two "terrific brands".
"We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship," Mr Mulally continued.
"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 Company that delivers profitable growth for all."
A statement from Tata Motors said it did "not anticipate any significant changes" to Jaguar and Land Rover workers' terms of employment.
Employees, trades unions and the British government have all backed the deal, Tata added.
Experts have questioned how Jaguar will fit into the deal. Land Rover has generated three years of record sales with its SUVs, but Jaguar has not been nearly as successful.
Ford decided to sell after a loss of $2.7 billion (£1.3 billion) in 2007 and $12.6 billion (£6.3 billion) in 2006. It now aims to turn around loss-making operations in North America. The deal also includes a commitment by Tata to continue buying engines from Ford.