Tata Motors buys Jaguar Land Rover for £1.1bn: official

The noon announcement said the $2.3 billion (£1.1bn) cash deal comprised the Jaguar and Land Rover brands, plants and intellectual property rights. After transfer of ownership – which is expected to be at the end of June – Ford will contribute up to $600 million to the Jaguar Land Rover pension plans. Commenting on the agreement, Tata Motors chairman Ratan Tata, said: "We are very pleased at the prospect of Jaguar and 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." Ford president and CEO Alan Mulally said he was confident that Jaguar and Land Rover would 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," he went on. As part of the transaction, 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 also committed to provide engineering support, including research and development, plus information technology, accounting and other services. The parties said they believed the arrangements would support Jaguar Land Rover's current product plans, “while providing Jaguar Land Rover with the freedom to develop its own stand-alone capabilities in the future that will best serve its premium manufacturer requirements”. They did not anticipate any significant changes to Jaguar Land Rover employees' terms of employment. Commenting on today’s announcement, SMMT chief executive Paul Everitt said, “The UK is a microcosm of our global automotive industry and we welcome news that a significant player like Tata Motors will acquire two iconic British brands. “Jaguar Land Rover will present their new owners with a robust product line-up, an efficient and highly-trained workforce and a strong customer base. We look forward to working with Tata to ensure we fully support their efforts to drive this success story in the months and years to come.” He added, “While we welcome investment in UK car making by such a significant global player, we should not forget the strong presence Ford has in the UK. The Transit plant in Southampton and investment in engine facilities at Dagenham and Bridgend reinforce its commitment to manufacturing in Britain.” Founded in 1922, Jaguar has been among the premium brands for luxury saloons and sports cars. Since its very first design appeared in 1948, Land Rover has always been universally identified as the ultimate in four-wheel drive vehicles. Jaguar and Land Rover have been under Ford's ownership since 1989 and 2000 respectively. The two together have about 16,000 employees. The Tata group comprises 98 companies in seven business sectors: engineering, which includes its automotive interests; materials, including Corus Steel; power; chemicals; services, including hotels and insurance; consumer products from tea to publishing); and telecoms.