Ford Motor Company will sell its Jaguar and Land Rover businesses to Indian car company Tata Motors Limited for about $1.7 billion – a third of the price it paid for the two brands. The deal was worked out in the past few months, as cash-strapped Ford sought money to fund its turnaround plan. Tata will pay $2.3 billion for the British brands, but Ford will pay about $600 million into the Jaguar-Land Rover pension fund when the deal closes, Tata's statement said. Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. Jaguar has never made a profit under Ford and the struggling company now plans to focus on its main brands. Tata said it expects no significant changes in the terms of employment for Jaguar and Land Rover's 16,000 workers. It said the transfer of the brands would take place at the end of the second quarter. Tata Motors is currently best known for its plan to build a $2,500 car later this year. In its statement, the company said that Ford will continue to supply engines, transmissions and other components “for differing periods.” Ford also will continue to provide environmental and other technologies as well as engineering support. Tata Chairman Ratan Tata said the company would try to hold onto the brands' identities. “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,” he said in a statement.
