FORD has completed the sale of its Jaguar and Land Rover to Indian frim Tata in a deal valued at £1.7 billion.
The companies are being sold for £1.15bn with Ford paying £600m into the pension fund of the brands. The negotiations started last June and the deal was announced in March. The price tag is about half the amount Ford originally paid for the marques.
Ford is selling the firms to try and boost overall performance. Land Rover remains profitable but Ford has never made money from its Jaguar investment.
Tata chairman Ratan Tata said: ‘This is a momentous time for all of us at Tata Motors. 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 realise their competitive potential.’
The current acting chief executive of the two businesses, David Smith, will take the top job having taken on the role after the April death of former cheif Geoff Polites.
Ford will continue to supply Jaguar and Land Rover for differing periods with engines, stampings and other car components, in addition to a variety of technologies.
In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers during a transitional period of up to 12 months.