The sale of Jaguar and Land Rover has been completed following the finalisation of the complicated deal between Ford and India’s Tata Motors. The Indian conglomerate has borrowed $2.3 billion ($1.2 billion) to buy the two brands, but maintains that it will not move production of Jaguars or Land Rovers to India, and will respect the brands’ British heritage.
Tata chairman Ratan Tata confirmed his company will stick to the five-year investment plan for the UK factories in Halewood, Solihull and Castle Bromwich. Announcing the deal, he said:
“We are very pleased at the prospect of Jaguar and Land Rover being with TaTa Motors a significant part of our automotive business. We have enormous respect for the two brands and will endeavour 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.”
Union worries about job losses have been partially allayed by the five-year promise and assurances that Tata will continue to use Ford-supplied engines. Many of Jaguar and Land Rover’s engines, such as the 2.7-litre V6 diesel and 3.2 V6 petrol, are made in Ford’s Dagenham and Bridgend factories. Ford will also transfer $600 million to the Jaguar and Land Rover pension fund.
Ford’s Executive Vice President, Lewis Booth, told Autocar that Ford will help Tata to integrate green technology into the Jaguar and Land Rover ranges, and he also that the engine supply arrangement is a long-term deal, saying that “Tata is really committed to the business and really committed to Britain.”
Booth also confirmed that Ford is not maintaining any stake in Jaguar / Land Rover, in contrast to the 15 per cent holding it maintained in Aston Martin when it sold the company last year.
Jaguar Land Rover CEO, Geoff Polites, welcomed the formal announcement of the deal by saying:
“Jaguar Land Rover’s management team is very pleased that Ford and Tata Motors have come to an agreement today. Our team has been consulted extensively on the deal content and feels confident that it provides for the business needs of both our brands going forward.”
Ref : http://www.autocarindia.com/new/Information.asp?id=2042