Car News in India

Tata Motors has once again taken the world by storm after acquiring much awaited luxury auto brands-Jaguar and Land Rover from Ford Motor for $2.3 billion on Wednesday. The deal will definitely give a major boost to the Indian auto maker’s image abroad. The deal was clinched after months of prolonged discussions and negotiations over the iconic luxury brands.

Beating compatriot Mahindra and Mahindra for the prestigious brands, just a year after acquiring steel giant Corus for $12.1 billion, JLR deal was announced after protracted negotiations that Tatas had with JLR union.

Groups chairman Ratan Tata expressed immense pleasure over acquiring JLR brand and said that “we are very pleased at the prospect of Jaguar and Land Rover being a significant part our automotive business.

He also said we have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact. After the deal, Ford President Alan Mulally said that Jaguar and Land Rover are terrific brands and we are confident that they are leaving our fold with products, plan and team to continue to thrive under Tata’s stewardship.

Now it is time for Ford to concentrate on integrating the Ford brand globally as we implement our plan to create a strong Ford Motor co that delivers profitable growth for all, he added.

As per the agreement entered into both the Tata and Ford, the Ford will continue to supply Jaguar and Land Rover for differing period with power trains, stampings and other vehicles components in addition to a variety of  technologies such as environmental and platforms.

Ford has also committed to providing engineering support, including research and Development plus information technology, accounting and other services. In addition, Ford Motor Credit Company will provide financing the JLR dealers and customers during a transitional period, which can vary by market for up to 12 months.

With this deal, Tata Motors will now manufacture cars ranging from small cars, cheapest car like Nano to luxury and super luxury cars from its platform.