Ford has sold Jaguar and Land Rover to India-based Tata, the country’s largest motor manufacturer. The two companies are reported to have fetched £1.15bn ($2.3bn), reports the Telegraph.
The sale ends Ford’s 20-year ownership of JLR, in which it has invested billions of pounds into the two carmakers. While Land Rover is profitable, Jaguar has been a perennial loss-maker and a drain on Ford’s finances.
Susanna Woods reports over at the ICM Commercial & Business News site:
Ford will continue to supply Jaguar Land Rover components, engineering and other support, while also providing financing for its Jaguar Land Rover customers during the transitional period.
Ratan N. Tata, Chairman of Tata Sons and Tata Motors, was pleased to welcome the brands into the Tata 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.”
The BBC add:
Jaguar and Land Rover employ about 16,000 staff at UK plants in the West Midlands and Merseyside.
The $2.3bn price tag is about half the amount Ford originally paid for the marques, leading some analysts to argue that the purchase was a mistake.
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- This entry was posted on Wednesday, March 26th, 2008 at 8:55 pm.
