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According to Automotive News, the deal is done. Today Ford signed a deal with India-based Tata Motors to sell its Jaguar and Land Rover brands for over $2 billion. Ford will supposedly announce the deal officially tomorrow (Wednesday), but sources close to the transaction say the receipt's already been printed, so to speak. While details are scarce, AN does mention that Ford will pump around $598 million into the pension funds for each brand as it sends them on their way. We're waiting to hear more details about how Ford will continue to supply engines and components for these vehicles, for how long and how much. Right now, however, mum's the word, as the Blue Oval has only said that, "our first responsibility is to communicate with our employees." Sorry if they heard it here first, but then again, they should be working now, not reading Autoblog. Right? Right.

UPDATE: Just-auto puts the price tag at $2.65 billion, and reveals we should have official news from Ford before the NYSE opens tomorrow morning.

[Source: Automotive News, subs. req'd]

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    • 1 Second Ago
      • 7 Years Ago
      Hooraay!!! Finally this is over and Ford will be able to dump these two pointless money pits and actually get something for them!! Now Ford has some money to put into marketing for customer research that will lead to new product. Pair that with the new labor contract and things might start to roll a little for them.

      It will be intersting to see how long TATA will hold onto Jaguar because many industry analysts say TATA only wanted Land Rover.

      Out of curiosity does anyone think that this sale will make GM take a look at dumping their own money pit SAAB? It seems that SAAB has done very little under GM and seems to be more trouble than its worth.
        • 7 Years Ago
        Part of the blame for the state of Jaguar lies with Ford/PAG/Reitzler/20+ years mismanagement/X-Type Mondeo Fiasco.
        The US$ 1 Billion nail in the coffin X350 (XJ) can be attributed to Jag's inbred Brit/Midland culture as in "We make cars for our dwindling/aging base of customers. Damn the rest. We know better."

        Tata will probably hang on to Jaguar for PR reasons but will "lease" it to Alfa and any other manufacturer looking for technology / platform, etc...

        Most of the Rover (Leyland) top guys are already working for Cherry, NAC, etc... I predict that some of the Top Jag guys will ultimately get top jobs in China, Turkey or India (Marutti, Koch, Tofas, etc..).

        Land Rover? Land Rover made plenty of cash for Ford. However, the LR brand as we knew it is dead (b*lls out Camel Trophy replaced by Metrosexual G4).
        Let's from now on talk solely about RR. That is where the money is and will be.
        Luxury good are pretty impervious to market conditions. Only hurdle is to get the CAFE/EU CO2 numbers down in the future. That could be achieved by selling more small engines in the US, EU OR merging with a high volume low CO2 Manufacturer hence the potential tie up with Alfa, Fiat, and Tata combined speculations in the press.
        Hybrid, Aluminum, start/stop technology will help.
        Land Rover might disappear with Defender. LR2 and LR3 are not proper LR nor are they proper Range Rovers. They are mutants in between LR and RR.

        The Range Rover, RR Sport, RR Mini, RR LRX Tart whatever will live on and make money for Tata.
        • 7 Years Ago
        Fair enough, but Ford also put alot into Land Rover and the line-up is aging. Ford does not have the money or time to redo a small volume brand while the bread and butter brand needs the attention and resources more.
        • 7 Years Ago
        Easy enough to do just search on Google for Land Rover 1 billion Profitable.


        Someone leaked the info and the UK magazine Just Auto picked it up. Even before that story though top gear had an article claiming the same thing back in the fall. The figured Land Rover made between 500 million and 1 billion dollars. I can't find the Top Gear Blog post anymore so it might be too old but you can try looking for it on Top Gear's website.


        Older article for you to see.

        and another

      • 7 Years Ago
      Ford, your on the right track. Now there are 3 big items left on your plate:

      1) Dump the irrelevant Mercury brand
      2) Build real luxury cars/SUV's for Lincoln and quit re-badging Ford models
      3) Get more aggressive on exterior styling and distinguish yourself in the market
        • 7 Years Ago

        Have to disagree with point one.

        It would be better for ford NOT to lose the brand equity that Mercury still does have, that they don't seem to be using.

        If they do points two and three, and spread Lincoln FAR upward with luxury oriented product (and can somehow successfully pull off a Cadillac-like re-invigoration)

        AND if they move Ford into a profitable John Q. Public position with better styling and compelling products...

        They are going to have a nice hole in their lineup. Sportier than Ford and Volvo, less expensive than Lincoln, and more premium and slightly bigger than Mazda, and RWD.

        Mercury needs to be Ford's 'Infiniti', while Lincoln becomes their 'Lexus'

        Killing mercury will just cost them money, it won't save them nearly as much.

        Oldsmobile didn't save GM money, and Plymouth didn't save Chrysler much either. They were simply sacrificed, and gone with no real benefits, than perhaps MAYBE decluttering GM a bit, but it certainly didn't solve it's problems. Chrysler isn't magically doing better, either, they just have less branding opportunity.

        If Mercury were a viable and attractive alternative to Infiniti G/M, or even EX/FX or even a sportier alternative to Hyundai's Genesis sedan and coupe, I would certainly like to own a Mercury like that.

        Attractive, sporty, premium but not full-lux, and RWD/AWD. Leave the wonder-bread to Ford, and the Caviar to Lincoln, and the affordable sport-compact and FWD offerings to Mazda, like Nissan.

        Right now Ford has NOTHING in that category. Nothing like G8, G35, G37, or even M45 (or will be M50, likely). Heck, they don't even have anything anywhere near the Hyundai Genesis, aside from the Coupe's professed Mustang benchmark.

        What better than Mercury to do such a thing? Lincoln isn't going to, and isn't the appropriate choice. Lincoln should be pointed at Cadillac, Buick, and undercutting Lexus ES and LS.
        • 7 Years Ago
        I mostly agree, however I think the Mustang, Edge and the 2009 F150 are fairly well designed overall. Maybe a couple others, but they aren't as bad as say Dodge in the past few years.
      • 7 Years Ago
      Dear Mr. Tata,

      Please bring the Defender to the U.S.

      • 7 Years Ago
      I don't know what to think.
      Ford makes some very good desirable cars (mostly in Europe) but Tata does not really at the moment.
      Somehow I am confident that with Their newly purchased luxury brands they will become a different company themselves.
      Yet still worried for these marques.
      • 7 Years Ago
      After dumping all of that money into the pension fund, it seems like quite a bargan. However, long term it may have been a great move even if the pair actually generated profit (due to LR) last year. LR could stand to suffer huge sales losses in the future with its SUV being locked out of European cities and possibly even entire markets due to global warming fears and resulting emissions crackdowns. Ford has dumped untold amounts of money into Jag and would be lucky to eeek out a small profit next year. I think both of these brands are money losers long term, but I hope Tata can manage to turn them around especially since Ford put them on the right path.

      The real benefit for Ford is going to be the potential for partnership in other areas with Tata, the sale price is really a drop in the bucket. Tata is now on the hook for the next decade for Ford Parts, technology, etc. If the two become intertwined, Ford could benefit from Tata's capital and low cost production.
      • 7 Years Ago
      The way the econony is here we may have to sell a lot more down the road. India, china, Asia have the money to buy cars like that. we are starting to be the new 3rd world country, thanks to Bush
      • 7 Years Ago
      Well, it`s rubbish that anything good will come of it. They are now HISTORY!! Gone and forgotten brands of once-aspiring automobiles. Forget them and get used to it. :(
      • 7 Years Ago
      We aren't doing anything anyway. This is the slow time of year.
      • 7 Years Ago
      From a company that ruined the two to a company that will ruin them even more.
        • 7 Years Ago
        Congratulations, you must be the biggest fan of brand loyalty. You should make your profile private so I can't read all of your comments...

        You wrote:
        "Mar 12th 2008 4:01AM
        Why homo? Is it because he wants a car that has been made in US?"

        Do you know why the American car companies are doing poorly? Because they aren't addressing what consumers want. Not because they're American and everyone hates our things. So start thinking like a real American and address the problem, don't just ignore it or defend it.
      • 7 Years Ago
      meant to say serious :-)
      • 7 Years Ago
      now our fellow Indians can show what we have stored inside. We can reach market domination!:P

      In a seripus matter, congrats Tata. They haven't been in the market for a very long time and already they are creating amazing things. If you are a car fanatic, you would know that Tata is in development for a car that runs on solid air aiming for '09. Tata is turning out to be an amazing company especially now that they have jaguar and landrover. They can expand out of India. Big gain for Tata and a bigger gain for India too. India hasn't been much of an industry topper for a long time, after one of the biggest revenue makers in the world, Reliance. Way to go Tata really.
      • 7 Years Ago
      $2.65 billion? That's quite a deal. I hope the parts supply business makes up for the rest.
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