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.