Ford Sells Jaguar, Land Rover

Motoring Channel Staff - 27/March/2008

Michigan, America — It's official - Jaguar and Land Rover are now Indian cars.

Ford and Tata sent out a joint press release confirming the $2.3 billion sale of the Jaguar Land Rover operations to Indian automaker Tata Motors.

It reads: "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."

Both Land Rover and Jaguar operations have not been huge revenue rakers for Ford, though the all-new Jaguar XF is showing promise with lots of orders.

As far as past, present and future Land Rover and Jaguar owners are concerned, not a lot will change with the handover.

Dealerships, servicing and other facets of the company will be left as is for at least the next few years.

According to the press document, "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 has indicated that it will also provide engineering support, which includes research and development, plus information technology, accounting and other services to Tata, which is the biggest privately owned company in India.

Is not expected that the new Indian owners will fire employees, with a statement reading "The parties do not anticipate any significant changes to Jaguar Land Rover employees' terms of employment on completion."

There's a good chance that under a new owner both luxury British brands could flourish. Tata Motors has deep pockets and will be in no hurry to stymie progress.

Alan Mulally, the president and CEO of the Ford Motor Company, talked positively about offloading the luxury marques: "Jaguar and Land Rover are terrific brands. 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," said Mr Mulally, who has been trying to integrate Ford's global brands since he took the job in late 2006.

Ratan Tata, the chairman of Tata Motors, said: "We are very pleased at the prospect of Jaguar Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour 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," added Mr Tata.

Australian-born and former Ford Australia president Geoff Polites, now the CEO of Jaguar Land Rover, was upbeat about the deal: "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.

"We 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 Rover."

Under Tata's direction, both Land Rover and Jaguar are expected to get fresh injections of capital over the next few years to further develop new vehicles into the future.

Meanwhile, Ford is consolidating its businesses in a bid to create a 'global' Ford company.

Currently Ford cars that are built and designed in Europe are very different to those made in America, and to develop systems that would allow for complimentary manufacturing across globe would reduce spendings significantly.

Ford's current boss, Alan Mulally, wants the Blue Oval to deliver vehicles that show off visually similar styles and uses similar components in all regions so that whether in Europe, the Americas, Australia, or Asia, the Ford look will be unmistakable.