New Manvir
27-03-2008, 03:08
Link (http://news.bbc.co.uk/2/hi/business/7313380.stm)
Ford Has sold car brands Jaguar and Land Rover to an Indian car firm called Tata Motors, for 2.3 Billion dollars.
Tata, India's biggest vehicle maker, is paying $2.3bn (£1.15bn) for the British brands after months of negotiations over price and supply relationships.
Jaguar and Land Rover employ about 16,000 staff at UK plants in the West Midlands and Merseyside.
Although Land Rover remains profitable, Ford has never managed to make money from its investment in Jaguar.
Ford has been forced to sell the two companies, based at Solihull and Castle Bromwich in the West Midlands and Halewood on Merseyside, in order to concentrate on its loss-making core US car business, which it hopes to turn around in the next two years.
The $2.3bn price tag is about half the amount Ford originally paid for the marques, leading some analysts to argue that the purchase was a mistake.
The purchase will give Tata the opportunity to expand its presence in the passenger car market beyond India and gives it the clout necessary to compete with international players.
In January, Tata launched the world's cheapest car, the Nano, priced at $2,500 (£1,250).
By contrast, the starting price for Jaguar's latest sports car, the XF is more than £32,000 ($64,000).
"We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," Tata said.
Ford Has sold car brands Jaguar and Land Rover to an Indian car firm called Tata Motors, for 2.3 Billion dollars.
Tata, India's biggest vehicle maker, is paying $2.3bn (£1.15bn) for the British brands after months of negotiations over price and supply relationships.
Jaguar and Land Rover employ about 16,000 staff at UK plants in the West Midlands and Merseyside.
Although Land Rover remains profitable, Ford has never managed to make money from its investment in Jaguar.
Ford has been forced to sell the two companies, based at Solihull and Castle Bromwich in the West Midlands and Halewood on Merseyside, in order to concentrate on its loss-making core US car business, which it hopes to turn around in the next two years.
The $2.3bn price tag is about half the amount Ford originally paid for the marques, leading some analysts to argue that the purchase was a mistake.
The purchase will give Tata the opportunity to expand its presence in the passenger car market beyond India and gives it the clout necessary to compete with international players.
In January, Tata launched the world's cheapest car, the Nano, priced at $2,500 (£1,250).
By contrast, the starting price for Jaguar's latest sports car, the XF is more than £32,000 ($64,000).
"We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," Tata said.