The much talked about sale of Jaguar Land Rover has finally been confirmed. On 26th March Ford formally announced that they have committed to selling the company to India’s Tata Motors for the sum of US$2.3 billion.
It is expected that the deal will be closed by the middle of summer, at which time Ford will contribute $600 million to the Jaguar Land Rover pension plan.
The move will allow Ford to concentrate on developing its own brands globally. Alan Mulally, President and CEO of the Ford Motor Company stated; “Jaguar and Land Rover are 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. 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.”
Speaking of the agreement, Nr Ratan Tata 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 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.”