Tata Motors Buys Land Rover, Jaguar For $2.3 Billion
Motors has finally lapped up Jaguar and Land Rover from Ford Motor Co.,
the world’s third- largest automaker, for $2.3 billion, which is less
than half what Ford paid for the two brands. Ford will contribute about
$600 million at closing to the Jaguar Land Rover pension funds.
Ford is exiting these brands, as the luxury vehicle market slumps and
it suffered a $15.3 billion loss in 2006 and 2007. Ford acquired Jaguar
in 1989 for $2.5 billion and Land Rover in 2000 for $2.73 billion as
part of a European-luxury strategy it began by buying Aston Martin in
1987. It sold Aston last year. The Jaguar-Land Rover sale should be
completed at the end of the second quarter, pending regulatory
approvals, Ford and Tata said.