GAYDON, England — Less than 20 years after its acquisition of Jaguar and eight years after buying Land Rover, the Ford Motor Company on Monday formally handed over ownership of the storied British brands to Tata Motors, part of India's oldest and largest industrial conglomerate.
The $2.3 billion sale was announced in late March. Because it agreed to contribute $600 million to the companies' pension funds, Ford will net only $1.7 billion.
The U.S. automaker paid $2.5 billion for Jaguar in 1989 and $2.7 billion for Land Rover in 2000.
Last year, Ford lost $2.7 billion and, despite eking out a modest profit in the first quarter this year, is expected to report another substantial loss for the full year. In May, CEO Alan Mulally also said the automaker no longer expects to return to profitability in 2009.
Tata last week said it would seek to raise $1.7 billion from several rights issues to help fund the purchase.
Attending the official handing-over ceremony on Monday were Ratan Tata, chairman of Tata Motors and head of the Tata Sons conglomerate; Don Leclair, Ford's chief financial officer; Lewis Booth, head of Ford of Europe; and David Smith, who was named CEO of Jaguar Land Rover.
At the ceremony, Ratan Tata observed: "Jaguar and Land Rover are two iconic British brands with worldwide growth prospects. We are looking forward to extending our full support to the Jaguar Land Rover team to realize their competitive potential. Jaguar Land Rover will retain their distinctive identities and continue to pursue their respective business plans as before."
The acquisition includes ownership of the Jaguar and Land Rover assembly plants, design centers and worldwide sales networks. In addition, Ford has agreed to supply the companies with engines, stampings and other components, and will cooperate with Tata on joint development of platforms, powertrains and hybrid technologies.
What this means to you: Life is beginning to get a bit complicated for Ratan Tata, who also has a partnership with Fiat, which is talking with Chrysler, which has ties to Chery and... Well, you get the picture. — Paul Lienert, Correspondent
The $2.3 billion sale was announced in late March. Because it agreed to contribute $600 million to the companies' pension funds, Ford will net only $1.7 billion.
The U.S. automaker paid $2.5 billion for Jaguar in 1989 and $2.7 billion for Land Rover in 2000.
Last year, Ford lost $2.7 billion and, despite eking out a modest profit in the first quarter this year, is expected to report another substantial loss for the full year. In May, CEO Alan Mulally also said the automaker no longer expects to return to profitability in 2009.
Tata last week said it would seek to raise $1.7 billion from several rights issues to help fund the purchase.
Attending the official handing-over ceremony on Monday were Ratan Tata, chairman of Tata Motors and head of the Tata Sons conglomerate; Don Leclair, Ford's chief financial officer; Lewis Booth, head of Ford of Europe; and David Smith, who was named CEO of Jaguar Land Rover.
At the ceremony, Ratan Tata observed: "Jaguar and Land Rover are two iconic British brands with worldwide growth prospects. We are looking forward to extending our full support to the Jaguar Land Rover team to realize their competitive potential. Jaguar Land Rover will retain their distinctive identities and continue to pursue their respective business plans as before."
The acquisition includes ownership of the Jaguar and Land Rover assembly plants, design centers and worldwide sales networks. In addition, Ford has agreed to supply the companies with engines, stampings and other components, and will cooperate with Tata on joint development of platforms, powertrains and hybrid technologies.
What this means to you: Life is beginning to get a bit complicated for Ratan Tata, who also has a partnership with Fiat, which is talking with Chrysler, which has ties to Chery and... Well, you get the picture. — Paul Lienert, Correspondent
Add A Comment »