MUMBAI: Tata Motors on Wednesday said the transfer of ownership of Jaguar and Land Rover is expected to close by the end of the next quarter, subject to applicable regulatory approvals.
The total amount to be paid in cash by Tata Motors upon closing will be approximately $2.3 billion. At closing, Ford will then contribute up to approximately $600 million for the pension plans.
Chairman of Tata Sons and Tata Motors, Ratan N. 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.”
Alan Mulally, President and CEO of the Ford Motor Company, said, “Jaguar and Land Rover are terrific brands. We are confident that they are leaving our fold with the products, plan and team to continue to 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.”
As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with power trains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services.
Ford Motor Credit Company will also provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.