Ford Fire Sale of Brit Brands
Mar 27th, 2008 by jsveva
Ford is selling its Jaguar and Land Rover brands to India’s Tata Motors, Ltd. The deal will net Ford only a third of the cost it originally paid to acquire the two. Tata Motors will pay a fire sale price of only $2.3 billion, with the intention that the two brands will increase Tata’s reach globally while giving both Jaguar and Land Rover the capital necessary to update and expand their lines. Ford, however will only net $1.7 billion after it had agreed to contribute $600 million of the proceeds from the sale back into the two brands respective pension funds at the closing of the transaction.