Detroit: Ford Motor Co and Tata Motors Ltd are nearing an agreement for Tata to buy Jaguar and Land Rover, according to a source who has been briefed on the negotiations.
The deal is likely to be announced in February, perhaps as early as next week, but could be as late as the Geneva Motor Show in early March, he said.
Ford chief financial officer Don Leclair said last week the company does not plan to keep a stake in the storied British automakers.
“Our plan right now is to sell the business in its entirety,” Leclair said in a telephone interview with British newspaper the Financial Times. Ford spokesman Bill Collins confirmed the quote as accurate.
Tata, which recently announced plans to build a $2,500 car in India, was named the prime bidder for the upscale Jaguar and Land Rover units earlier this month, besting two other finalists, Indian automaker Mahindra & Mahindra Ltd. and US private equity firm One Equity Partners LLC.
The person briefed on the talks, who requested anonymity because the negotiations are private, said Tata and Ford are negotiating an agreement for Ford to keep supplying engines and other technology to Jaguar and Land Rover.
Ford maintained a small stake last year when it sold controlling interest in Aston Martin, the sports car brand immortalized in James Bond films. Ford sold the automaker to holding company Primrose Cove Ltd, receiving $848 million but retaining a $77 million stake.
Meanwhile, it is reported that Ford has the stake in Aston Martin because it didn’t have supply agreements similar to those being negotiated with Tata.