Ford Motor Company [NYSE: F] announced today that it has entered
into a definitive agreement to sell its Jaguar Land Rover operations to
The transaction is the culmination of Ford’s
decision last August to explore strategic options for the Jaguar Land
Rover business, as the company accelerates its focus on its core Ford
brand and “One Ford” global transformation.
The sale is
expected to close by the end of the next quarter and is subject to
customary closing conditions, including receipt of applicable
The total amount to be
paid in cash by Tata Motors for Jaguar Land Rover upon closing will be
approximately US $2.3 billion. At closing, Ford will then contribute up to approximately US $600 million to the Jaguar Land Rover pension plans.
and Land Rover are terrific brands," said Alan Mulally, president and
CEO, Ford Motor Company. "We are confident that they are leaving our
fold with the products, plan and team to continue to thrive under
Tata’s stewardship. Now, it is time for Ford to concentrate on
integrating the Ford brand globally, as we implement our plan to create
a strong Ford Motor Company that delivers profitable growth for all."
is a good agreement. It provides the Jaguar Land Rover management team
and employees with the assurances needed to maintain their focus on
delivering the best results for the business," said Lewis Booth,
executive vice president, Ford Motor Company, who has responsibility
for Ford of Europe, Volvo and Jaguar Land Rover. "I am confident that,
under its new owner, Jaguar Land Rover will continue to build upon the
significant improvements and product successes it has achieved in
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
Company 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.
The parties believe these
arrangements will support Jaguar Land Rover’s current product plans,
while providing Jaguar Land Rover freedom to develop its own
stand-alone capabilities in the future that will best serve its premium
The parties do not anticipate any significant changes to Jaguar Land Rover employees’ terms of employment on completion.
about today’s agreement, Mr. Ratan N. Tata, Chairman of Tata Sons and
Tata Motors, commented: "We are very pleased at the prospect of Jaguar
and Land Rover being a significant part of our automotive business. We
have enormous respect for the two brands and will endeavor 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."
Land Rover’s employees, trade unions and the UK Government have been
kept informed of developments as the sale process progressed and have
indicated their support for the agreement.
behalf of Jaguar Land Rover, Geoff Polites, chief executive officer,
said: "Jaguar Land Rover’s management team is very pleased that Ford
and Tata Motors have come to an agreement today. Our team has been
consulted extensively on the deal content and feels confident that it
provides for the business needs of both our brands going forward.
have also had the opportunity to meet senior executives from Tata
Motors and the Tata group," Polites continued. "They have expressed
confidence in the team that has delivered significant improvements in
Jaguar Land Rover’s business performance. We feel confident that we
can forge a strong working relationship with our new parent company,
and we look forward to a bright and successful future for Jaguar Land