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Ford Motors, Tata Motors signs agreement to sell Jaguar Land Rover

Thursday, 27 Mar 2008
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Ford Motor has entered into a definitive agreement to sell its Jaguar Land Rover operations to Tata Motors.

Tata Motors have agreed to pay Ford Motor about $2.3 billion for Jaguar and Land Rover and Ford will contribute up to about $600 million to the two brands' pension plans under terms of a sale agreement.

As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services.

In addition, Ford Motor Credit Co will provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.

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