Date: 03-27-2008
Ford, the world’s third largest automaker, has revealed that it is likely to sell its famous car brands Land Rover and Jaguar to Indian conglomerate Tata for about $2 billion. Ford is selling the two iconic brands on the heels of its decision to sell its other British brand, Ashton Martin, last year. All three car brands, which were part of Ford’s premier automotive group, have failed to deliver profits in recent years due to a weak economy and declining demand. Mumbai-based Tata Motors “will have trouble doing well in this sort of environment,” said Edwin Merner, who is overseeing the deal as the president of Atlantis Investment Research Corp. in Tokyo. Ford is reported to have incurred total losses of about $15.3 billion over the past two years. The Land Rover and Jaguar vehicles will continue to be manufactured in Britain, thus safeguarding 13,500 jobs for the time being.
