A Ford agreement with Tata Motors to buy Jaguar and Land Rover could be announced as early as next week and the US automaker may not keep a stake in the two British firms, according to recent reports.
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An unnamed source told the Associated Press (AP) the deal is likely to be announced in February, perhaps next week, but could be as late as the Geneva motor show in early March.
AP noted that Ford’s chief financial officer Don Leclair went on the record last week as saying that his company does not plan to keep a stake in the British automakers.
“Our plan right now is to sell the business in its entirety,” Leclair reportedly said in a telephone interview with the Financial Times – Ford spokesman Bill Collins confirmed the quote’s accuracy to the news agency.
Tata earlier this month was named the prime bidder for the Jaguar and Land Rover units, ahead of Mahindra & Mahindra and US private equity firm One Equity Partners.
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By GlobalDataThe Associated Press’ source said Tata and Ford were negotiating an agreement for Ford to keep supplying engines and other technology to Jaguar and Land Rover.
The news agency noted Ford maintained a small stake last year when it sold a controlling interest in Aston Martin to holding company Primrose Cove, receiving $US848m but retaining a $77m slice.
The news agency’s source added that Ford kept the Aston Martin stake because it didn’t have supply agreements similar to those being negotiated with Tata.
Ford spokesman John Gardiner in London would not comment to the Associated Press on when the sale might take place or what was being negotiated.
Separately, an unnamed industry source told auto trade newspaper Automotive News Europe (ANE) Ford has no plans to keep a Jaguar-Land Rover stake. The paper noted it had been thought that Ford would want to retain a stake to protect supply contracts for components such as engines.
“There is no need for it,” the source told ANE. “Ford really wants to concentrate on its North American operations, that is the whole reason why it is selling Jaguar and Land Rover.”
Retaining a stake, however small, would only divert management time from the North American turnaround plan, the source reportedly said.
According to Automotive News Europe, Indian media have also reported that Tata is preparing for “an outright purchase” of the two luxury brands.
The ANE source said Tata had agreed to continue to use Ford components.
“Everything has been resolved. Tata will use Ford engines and other parts for the foreseeable future,” the source was quoted as saying.
