Videshi brands go Desi: Ford hands over Jaguar, Land Rover to Tata Motors

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As per the terms of the all-cash deal, Ford will commit $600 million to the pension plans of the workers of the Land Rover and Jaguar factories in Britain.

Ford has also reached an agreement with Tata whereby it will continue to supply engines, stampings and other components to the Jaguar and Land Rover factories.

For the time being, Ford will also provide information and technology (IT) support and will allow access to accounting and test facilities.

The two companies have also reached an agreement to co-operate in areas such as design and development through sharing of platforms and joint development of hybrid technologies and powertrain engineering.

Tata Motors, which will be the new owner of the manufacturing plants, design centers and global sales network of Jaguar and Land Rover, said it will not merge the British marques with the company but will continue to operate the businesses as a subsidiary, preserving their identities.

It is also negotiating with leading auto finance providers to support the Jaguar and Land Rover businesses in the UK, Europe and the US. For the time being, Ford Motor Credit Company will provide finance to the Jaguar and Land Rover dealers and customers.

Ratan Tata, chairman of Tata Group and Tata Motors, Ravi Kant, managing director of Tata Motors, Don Leclair, executive vice president and CFO of Ford Motor Co. and Lewis Booth, executive vice president (Ford Europe) were among those present during the formal handing over ceremony held at Jaguar and Land Rover's headquarters at Gaydon, UK.

"This is a momentous time for all of us at Tata Motors," Ratan Tata said. "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," he said.

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