Why did Ford Jaguar sell Land Rover

March 26, 2008 at 6:01 pm

Sales price is according to data from Ford 2.3 billion US dollars

The news was long awaited and yet it hit like a bomb: Ford sells Jaguar and Land Rover to the Indian car manufacturer Tata. This caused a sensation a few weeks ago at the Auto Expo in New Delhi with the presentation of the 1,700 euro Tata Nano car. To this day, the Ford executives withheld more detailed information on the sale of the two brands. In the following we publish the original Ford press release:

Ford Motor Company today confirmed that Jaguar and Land Rover will be sold to Tata Motors. The transaction marks the completion of a process that began last August with the announcement that it would review strategic options for Jaguar and Land Rover. The reason for this decision is the concentration on the Ford brand and the global implementation of the new One Ford corporate strategy. The sale is expected to close by the end of the next quarter, provided that all conditions and regulations are met and official approvals have been given for the sale. The amount Tata Motors will pay for Jaguar and Land Rover upon completion of the sale will be approximately $ 2.3 billion. Ford will also pay up to $ 600 million into Jaguar Land Rover's retirement fund upon completion.

, Jaguar and Land Rover are two great brands, "said Alan MuIally, President and CEO, Ford Motor Company." We are confident that both brands, their products, plans and teams will continue to grow under the new Tata umbrella. The time has now come for Ford to focus on the global integration of the Ford brand. The goal is to have a strong Ford Motor Company that delivers profitable growth for all. "Lewis Booth, Executive Vice President, Ford Motor Company, responsible for Ford of Europe, Volvo and Jaguar Land Rover:" This is a good ending. It gives the management and employees of Jaguar Land Rover the security and confidence to focus on what is most important, namely to make their contribution to the greatest possible success of the company. I am convinced that Jaguar Land Rover will continue to grow under the new ownership structure beyond the successes of recent years. "

As part of the transaction, Ford will supply engines, body panels and other vehicle components for the time being, including future environmental and platform technologies. Ford has also pledged support in research and development, information technology, financial accounting, and other services. In addition, Ford Motor Credit Company will provide financial services to Jaguar and Land Rover dealers and customers during the transition period, which in some markets can last up to twelve months.

All parties involved believe that the agreements will support Jaguar and Land Rover's current product plans. But you will also give the Jaguar and Land Rover teams the freedom to concentrate on their own skills in order to be able to fully meet the demands of the market for exclusive premium brands. There are no plans to make fundamental changes to the existing employment contracts.

Commenting on today's agreement, Ratan N. Tata, CEO of Tata Sons and Tata Motors, said, “We are delighted to see Jaguar Land Rover become an important part of our automotive business. We have great respect for both brands - and we will do everything we can to preserve and strengthen their tradition and competitiveness on the one hand, but also to leave their identity untouched on the other. We will do our utmost to support the growth of the brands. We particularly emphasize our principle that management and employees should bring all their experience and skills to bear in order to ensure the success and growth of the company have given their approval.

Geoff Polites, Jaguar and Land Rover's Chief Executive Officer, says, “The Jaguar Land Rover management team is pleased that today's deal between Ford and Tata Motors has come about. Our team has been extensively consulted on the content of the agreement and is convinced that it contains all the agreements to support the continued growth of the brands. "Geoff Po1ites continues:" We also had the opportunity to meet with senior management at Tata Motors and the Tata Group. They expressed their confidence in the team that has made significant improvements in the economic performance of Jaguar and Land Rover, and we firmly believe that we will work closely with our new parent company in a spirit of trust . And we are optimistic about a successful future for Jaguar and Land Rover. "

Picture gallery: Tata is shopping