Tata deal confirmed

Jaguar and Land Rover are now owned by the Indian firm Tata Motors.

The £1.15 billion deal was confirmed today (26 March) with an announcement from Ford in Dearborn, USA.

There are still formalities to be sorted before the deal is complete, but Ford said it expects these to be finalised by the end of June.

Ford president and CEO Alan Mulally commented: "Jaguar and Land Rover are terrific brands and we are confident they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship."

Land Rover has been profitable in recent years, but Jaguar never made a profit for Ford.

Lewis Booth, Ford vice president responsible for the British brands, said: "This is a good agreement. It provides the Jaguar and Land Rover management team and employees with the assurances needed to maintain their focus on delivering the best results."

Ratan Tata, who is the owner and chairman of Tata Motors, said: "We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our company.

We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact."

Tata has also stated that it intends to support new growth for both companies.

This is rumoured to lead to a new small Jaguar sports car and the production version of Land Rover's LRX concept car.

Ford will continue to supply Jaguar and Land Rover with engines and other components for the foreseeable future.

Alisdair Suttie