Ford says Tata to premium brands

Ford has confirmed today that Tata Motors will be the new owner of British brands, Jaguar and Land Rover. The two companies are being sold by Ford for US $2.3 billion, a sum which will help Ford's bottom line. Offsetting that amount in part, Ford will contribute US $600 million to pension plans for Jaguar and Land Rover employees.

An agreement has been signed and the sale will be concluded by the middle of the year. The decision to offload Jaguar and Land Rover has resulted from Ford's recent financial difficulties and follows the earlier sale of Aston Martin.

Ford will continue to supply key components for Jaguar and Land Rover models. The company acquired Land Rover when BMW were selling off all assets formerly operating under the umbrella of the Rover Group.

With Tata taking on Jaguar and Land Rover, Volvo remains in the Ford fold and can cover the broader spectrum of Jaguar and Land Rover's model ranges combined. Volvo is already closely integrated with Ford, both companies sharing platforms and drivetrains for small and medium cars.

"Jaguar Land Rover's management team is very pleased that Ford and Tata Motors have come to an agreement today," said Jaguar Land Rover's Chief Executive Officer, Geoff Polites, ex-pat Aussie and former Ford Australia President.

"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.

"We have also had the opportunity to meet senior executives from Tata Motors and the Tata group. They have expressed confidence in the team that has delivered significant improvements in Jaguar Land Rover's business performance.  We feel confident that we can forge a strong working relationship with our new parent company, and we look forward to a bright and successful future for Jaguar Land Rover."

The deal coincides with an improved sales outlook for both Jaguar and Land Rover, following the release of the XF Jag and the Freelander 2.