Mumbai, India – The sale of Jaguar and Land Rover by the Ford Motor Company to Tata Motors of India was completed yesterday. The two brands were sold for a net consideration of US$2.3 billion in an all-cash transaction. Ford has contributed about US$600 million to the Jaguar Land Rover pension plans. The companies were officially handed over in a ceremony at the headquarters of Jaguar Land Rover at Gaydon, England.
“This is a momentous time for all of us at Tata Motors,” said Ratan Tata, chairman of Tara Sons and Tata Motors. “Jaguar and Land Rover are two iconic British brands with worldwide growth prospects. We are looking forward to extending our full support to the Jaguar Land Rover team to realize their competitive potential. Jaguar Land Rover will retain their distinctive identities and continue to pursue their respective business plans as before. We recognize the significant improvement in the performance of the two brands and look forward to this trend continuing in the coming years. It is our intention to work closely to support the Jaguar Land Rover team in building the success and preeminence of the two brands.”
Tata confirmed that David Smith, acting CEO of Jaguar Land Rover, will be the new CEO of the business.
The purchase agreement includes the ownership or perpetual royalty-free licenses by Jaguar and Land Rover of all necessary intellectual property rights, manufacturing plants, two advanced design centres in the U.K., and the worldwide network of national sales companies. The company has entered into long-term agreements for the supply of engines, stampings and other components, as well as other areas of transitional support from Ford, including IT, accounting and access to test facilities. The two companies will continue to cooperate in areas such as design and development, through platform sharing and joint development of hybrid technologies and powertrain engineering.
The Ford Motor Credit Company will continue to provide financing for Jaguar Land Rover dealers and customers for a transitional period. Tata Motors is in an advanced stage of negotiations with finance providers to support the business in the U.K., Europe and North America, and is expected to select financial service partners shortly. Tata Motors is India’s largest automobile company, and is that country’s leader in commercial vehicles and among the top three in passenger vehicles. It is also the world’s fourth-largest truck manufacturer and second-largest bus manufacturer.