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It’s official: Tata buys Jaguar and Land Rover for $2.3 billion

03/26/2008, 8:58 AM

By paulee

Ford announced on Wednesday the sale of its Jaguar and Land Rover luxury brands to India’s largest automaker, Tata Motors. The deal will include the brands, plants and Intellectual Property Rights, all for a cash sum of about $2.3 billion, with a commitment from Ford to pay out $600 million in future pensions to retired employees of the two brands. The purchase is to be completed by the end of June, the second quarter of the year, pending government approvals.

Other stipulations of the contract include Ford continuing to supply Jaguar and Land Rover powertrains, stampings and other components, as well as environmental and platform technologies, among others, for unspecified and differing amounts of time. Ford will also provide engineering support, research and development, information technology, accounting and other services.

In some markets, Ford will continue to provide financing for Jaguar and Land Rover dealers and customers for up to 12 months.

“We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact,” said Ratan Tata, Chairman of Tata Sons and Tata Motors. “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.”

“Jaguar and Land Rover are terrific brands,” commented Alan Mulally, Ford’s CEO. “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.”

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03/26, 9:07 AM

posted by:

Madcapp

Thank you very much my friend.

03/26, 9:13 AM

posted by:

RSPINAJR

You better build some nice Lincolns now Mulally!!!!

03/26, 9:23 AM

posted by:

Vroom

Ford finally managed to unload these poorly run brands. I can’t see now how a company that makes the worlds cheapest car is going to raise the bar, but I guess they’ve got more money than Ford did to throw at them. Ta ta for now Jag and LR.

03/26, 9:30 AM

posted by:

JohnnyBlazE

Very nice Vroom lol

03/26, 10:25 AM

posted by:

MikeFX

How can the company that makes the Yaris also make the LS600? This deal is already sounding good, with Fiat (and Alfa) already speculating about working with Tata to share Jaguar dealers.

The real question is what will Ford do with the cash. This is really their last chance to turn things around. I vote for using the money to subsidize Mondeos coming over here.

03/26, 10:37 AM

posted by:

lamboz get a life

for those who thought it was bad when Ford owned them………

03/26, 10:43 AM

posted by:

BlackX

“for those who thought it was bad when Ford owned them………

Comment by lamboz get a life, posted on March26 at 10:37 am”

EXACTLY

03/26, 11:10 AM

posted by:

frylock350

@MikeFX,
Yaris isn’t a POS. A little deathbox yes, but its a QUALITY little deathbox. Can’t say the same about plastic Tatas.

03/26, 11:20 AM

posted by:

sharpie

You can have all the deathboxes with quality. I want none, quality or not. I hope the two brands still get some freedom with regard to product development.

03/26, 11:43 AM

posted by:

jumpoffit

i like plastic tatas- oh wait that would be silicone tatas, nevermind

03/26, 11:47 AM

posted by:

JohnnyBlazE

“for those who thought it was bad when Ford owned them………

Comment by lamboz get a life, posted on March26 at 10:37 am”

EXACTLY WRONG.

03/26, 12:01 PM

posted by:

maximus

hey, the yaris isn’t a deathbox!

03/26, 12:05 PM

posted by:

SS4LIFE

NO the Yaris isnt a deathbox

03/26, 1:07 PM

posted by:

F451

A sad historic day of record for once venerable brands.

03/26, 1:10 PM

posted by:

JennyFromTheBlock

Why is it a sad day? The marques haven’t been independent for decades

03/26, 1:54 PM

posted by:

frylock350

@JennyFromTheBlock,
Its sad because at lease LR and Jag were owned by a reputable company that makes quality products. Now they’re owned by a company that sells plastic toys and calls them cars.

03/26, 1:57 PM

posted by:

MikeFX

The point is that you can’t define Tata by only thinking of the Nano. For all we know the Nano is a piece of crap deathbox, but for many overseas the decision to buy a new Nano or a 20-year old Civic is no-brainer!

03/26, 1:58 PM

posted by:

Astonman12

I can’t wait to see how these companies change with their new owners. They gotta step up Jag a little more and keep Land Rover at top of the luxury SUV ladder. Produce some more advanced technology for both, make them leaders!

03/26, 1:58 PM

posted by:

Astonman12

Also, I like the idea of getting involved with Alfa Romeo. I’m excited to see them come back to the U.S.

03/26, 2:01 PM

posted by:

Astonman12

One more thing, the reason Tata is makin the Nano is because it is a whole different world over there. Normal people cannot afford the cars that we all drive. Its so much different over there and their domestic brand, Tata, has to cater to their country’s needs.

03/26, 2:04 PM

posted by:

CleanGTO

It’s a sad day because countries that will never defeat the western world militarily have been planning its economic demise since WWII; worst of all is Toyota, but not limited to them by any means. It’s a sad day any marque falls into the hands of those companies who might potentially ruin the identity of the brand…use your noggin.

03/26, 2:16 PM

posted by:

DeansterTJ

Unfortunately, sounds like Ford is knee-deep in Jaguar for the near future. By supplying drivetrains, stamping equipment, etc..etc…right down to the financing arm, nothing but he deed got sold. ****ing joke.

Ford is a ****, garbage, unimaginative company that deserves to be struggling.

03/26, 2:21 PM

posted by:

Scarface03

This is not a sad day. Everything’s in place for Jag and LR to thrive.

Tata Motors is not a substandard company peddling crap in third-world or developing nations. It’s part of a conglomerate of businesses and companies that are worth billions. Tata successfully markets other vehicles in India and, like Astonman12 says, they respond to the needs of the consumers.

Now, they have two great brands with dealerships in place, R&D subsidized, and sources for most manufacturing needs in place for quite some time. With Tata’s own Fiat connections, the groundwork is in place to expand the reach of the two marques even further than before.

Jag and LR will be just fine.

03/26, 2:45 PM

posted by:

Commodore

That is really sad that those two automakers with such potential have to “Daddy” (Tata actually means “Daddy” in some Slavic languages). But seriously, a dirty, overpopulated, wanna-be superpower country gets those two brands for what reason? What are they gonna do with them? It seems to me the only reason they want them (as well as all the other British companies they have been snatching up) is to get back at Britain for enslaving India.

03/26, 2:50 PM

posted by:

Astonman12

LOL @ Commodore

03/26, 2:51 PM

posted by:

jdasch1

Its a great day!! Ford is getting rid of brands that do NOTHING for the Ford brand. The Ford brand is the only one that really matters. DeansterTJ…take a pill and sell that 12 MPG Wrangler you have been driving…maybe your attitude will change. Who else was out there to buy 2 failing gas pig brands..Jag and LR?? At least the check was good.

03/26, 3:00 PM

posted by:

SS4LIFE

ATTENTION EVERYONE. As of todau 3/26/08 I will no longer be posting comments on here due to the lack of maturity, and problems of whoever is using our LLN handles and trying to impersonate me and anyone else, and therefore causing problems.

If any comments after this post are said by my handle, they will have a hyperlink to a gay porn site (Do not click on it) and are deemed offensive to anyone just know it wasn’t said by the real me. After using LLN over the past 7 months, it’s sad it’s come to this. Good luck everyone.

03/26, 3:13 PM

posted by:

TOZO

Black day.

03/26, 4:50 PM

posted by:

1c3d0g

jdasch1: fully agreed! Now they can truly focus on the wreck that is Lincoln and set things right. More Volvo integration, like their awesome AWD Haldex systems would be a major benefit to Ford. And so on. Yes, it took them a long damn time but it seems they’re finally turning the ship around.

03/26, 6:38 PM

posted by:

gbb

So long to two storied brands with long and rich historys. They will quickly become massive balls of **** when tata is finished.

03/27, 2:17 AM

posted by:

Commodore

Correction to my earlier post: “That is really sad that those two automakers ended up being sold to Daddy (which is what “Tata” means in some Slavic languages”. The way I had written it before (because I was typing fast) almost looked as bad as some of the articles posted by LLN which are clearly not proof-read. Go read the Hyundai Genesis crash article if you don’t know what I’m talking about

03/27, 7:39 PM

posted by:

bigp

now linicon will have nothing holding it back from the top

 
 
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