Tata buys Jaguar and Land RoverIndian company agrees £1.15 billion deal
27 March 2008
Indian conglomerate Tata has bought the car brands Land Rover and Jaguar in a deal worth around £1.15 billion.
US car giant Ford sold the companies in a move which will safeguard thousands of UK jobs. Ford said the sale was expected to be concluded by the end of June.
Land Rover, whose models include the Range Rover, Freelander and Defender, is based at Solihull in the West Midlands.
Jaguar, which makes the X-type, the XJ and and the XF series, has plants at Castle Bromwich in the Midlands and at Halewood on Merseyside.
Which? asked Jaguar Land Rover whether the deal would affect current owners' warranties, and the supply of spare parts.
A company spokesman said:'The situation is completely unchanged. It is business as usual.'
Ford will continue to supply Jaguar and Land Rover for differing periods with engines and other car components.
In addition, Ford Motor Credit Company will provide finance arrangements for Jaguar and Land Rover dealers and customers during a transitional period of up to 12 months.
Build on brands
Tata Motors Chairman Ratan 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.’
Tata Motors is just one of the many companies which form the Tata Group.
It already owns tea company Tetley as well as steelmaker Corus, part of which was formerly British Steel.
More recently, Tata launched a four-seat hatchback costing just £1,250. Named the Nano, the car is expected to go on sale at the end of this year.
Which? motoring expert David Evans said: ‘This deal looks good in the medium term, certainly for the UK staff at both Land Rover and Jaguar, as it de-couples the businesses from Ford's struggling North American operations, without handing the business to owners whose interests lie outside the motor industry.
‘In the longer term, success depends on Tata's willingness to invest in products that consumers continue to want to buy.'