Tata Motors has acquired Ford’s British marquees Jaguar and Land Rover for 2.30 billion dollars.
As per the deal, Ford will continue to supply Jaguar and Land Rover with powertrains, stampings and other components for varying time periods. It also will provide a variety of technologies, including environmental ones. Ford also will continue to provide engineering as well as research and development support, information technology, accounting and other services. Also Ford will pay about $600 million into the Jaguar-Land Rover pension fund. In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers up to 12 months.
Speaking about today’s agreement, Mr Ratan N Tata, Chairman of Tata Sons and Tata Motors, commented, “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.”
“Jaguar and Land Rover are terrific brands,” said Alan Mulally, president and CEO, Ford Motor Company. “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 Company that delivers profitable growth for all.”