DETROIT (AP) - Ford stands to come away with 1.7 billion dollars
when it's all over, by selling its Jaguar and Land Rover brands to
India's Tata Motors.
Ford bought Jaguar for 2.5 billion dollars in 1989 and Land
Rover for 2.7 billion in 2000. But the automaker has been
struggling and wants to focus on its main brands.
A statement from Tata says the company will pay 2.3 billion
dollars for Jaguar and Land Rover, roughly a third of what Ford
paid for the two luxury brands. Ford will then have to pay about
600 million dollars into the Jaguar-Land Rover pension fund when
the deal closes.
One analyst says Tata should have the cash to rescue the brands
and develop new products to better compete with luxury automakers.