TATA (India) buys Jaguar and Land Rover

from theguardian.co.uk

It is understood that a deal between Tata and Ford over the sale of two of the best known names in British car making was concluded last night after months of painstaking negotiations. The companies have been in detailed negotiations for almost three months after Tata emerged as the leading bidder, ahead of rivals One Equity, a private equity concern, and automotive group Mahindra and Mahindra. Ford has not commented on the detailed financial performances of the two marques. Land Rover has clocked up record sales in each of the last three years and is estimated to have made about $1bn in the last financial year, while Jaguar is understood to have curbed earlier losses.

Sources close to the talks have indicated that negotiations have been protracted, not because of haggling over the price, but because of the need to negotiate supply contracts under which Ford would continue to provide engines for both marques. Tata, which owns the Anglo-Dutch steel maker Corus, and Tetley Tea, is the bidder favoured by the trade unions, but they will be looking for assurances over investment, plant and job security.

At the Geneva motor show this month, Tata's head, Ratan Tata, said he planned to keep "the image, touch and feel", of the two marques. "There is no reason to tinker with the brands. Our challenge is to make them grow." Under Tata, Jaguar and Land Rover are expected to stick to existing business plans for the next few years, with the headquarters operation remaining in Britain.

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