As expected, the indian automotive group tata motors is acquiring the jaguar and land rover brands from u.S. Giant ford. This is reported by the "press trust of india" (pti), the oldest and coarsest news agency on the subcontinent, citing sources familiar with the negotiations. Accordingly, tata will pay between 2 billion and 2.5 billion us dollars (equivalent to 1.3 billion to 1.6 billion euros) for the two traditional british companies.
There have been no official announcements from the companies so far. A spokesman for tata motors announced today, wednesday, that it would invite the public to a "appropriate timing" to inform. A ford spokesman explained that such a transaction was not announced until the affected employees had been informed.
Earlier this year, the head of ford of europe, lewis both, informed the workforce of the company’s two british subsidiaries that he was negotiating a sale with tata. In the meantime, mahindra, which is also an indian car manufacturer, had also shown interest in the jaguar and land rover brands mahindra showed interest in the jaguar and land rover brands, which have a special sound in india due to its former affiliation with the british empire. Tata made a splash earlier this year with its announcement that it would launch the nano, the world’s cheapest car.
According to media reports, the uk’s largest trade union, unite, is pleased that tata and ford have reached a deal and that jobs at jaguar and land rover in the uk will be preserved. At the same time, unite expressed disappointment that ford would not retain a minority stake in its noch subsidiaries.
In the meantime ford has officially confirmed the sale. According to a statement from the company’s headquarters in dearborn (usa), tata motors is acquiring jaguar and land rover for a total of around 2.3 billion u.S. Dollars (just under 1.5 billion euros). The transaction is expected to be completed by the end of june this year, subject to approval by the competition authorities.
As part of the deal, ford will sell the upscale brands via "different", as part of the agreement, ford will continue to supply the luxury brands with powertrains, stampings and other vehicle components over various unspecified periods, and will also provide jaguar and land rover with access to ford’s platform and environmental technologies, including research and development.
Regarding the future of the approximately 16.000 employees affected at the plants in the united kingdom, the announcement states that both parties to the agreement "significant changes in" employment contracts are expected. Ford also said it would provide about $600 million for jaguar and land rover’s operating pensions and help handlers of both brands raise capital for a transition period of no more than a year.