Tata to get all of Jaguar, Land Rover
Automotive News | January 30, 2008 - 3:35 am EST
Ford Motor has no plans to keep a stake in its Jaguar and Land Rover luxury brands, an industry source told Automotive News Europe.
Ford earlier this month picked Tata Motors as the front-runner to the purchase of the two brands. It had been thought that Ford would wish to keep a stake in Jaguar-Land Rover to protect its supply contracts for components such as engines.
“There is no need for it,” the source said. “Ford really wants to concentrate on its North American operations, that is the whole reason why it is selling Jaguar and Land Rover.”
Retaining a stake, however small, would only divert management time from the North American turnaround plan, the source said.
The Indian media also are reporting that Tata Motors is preparing for "an outright purchase" of Jaguar and Land Rover luxury brands.
"Ford has decided not to retain a minority stake, as it is convinced about the future development of these two brands in the hands of the Tatas," the TheEconomic Times said, citing sources close to the development.
Both Jaguar and Land Rover use Ford supplied engines, while Ford kept a stake in Aston Martin when it sold the luxury carmaker last March.
The ANE source said Tata had agreed to continue to use Ford components.
“Everything has been resolved. Tata will use Ford engines and other parts for the foreseeable future,” the source said.
The deal, which is expected to be completed early this year, has been pegged at $1.5 billion to $2.0 billion (about 1-billion euros to 1.4-billion euros) by analysts.
"We are still in detailed and focused discussions with Tata Motors, and these discussions are confidential," a spokesman for Ford Motor told the Economic Times.
A Tata spokesman declined to comment to ANE, saying the discussions are confidential.
Reuters contributed to this report
Retaining a stake, however small, would only divert management time from the North American turnaround plan, an industry source source told ANE.