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| Tata announces purchase of Jaguar | |
| (about 1 hour later) | |
| Car giant Ford is to sell its luxury UK-based car marques Jaguar and Land Rover to Indian company Tata. | |
| Tata, India's biggest vehicle maker, is likely to pay about $2bn (£1bn) in the deal, although analysts will be keen to see the exact price and terms. | |
| The lengthy sale process started last June when Ford announced its intention to sell the companies as a package. | |
| Jaguar and Land Rover employ about 16,000 staff at plants across the West Midlands and Merseyside. | |
| Tata accounts for more than half of the sub-continent's truck market and has about 20% of India's car market. | |
| Returning Jaguar to profitability will neither be easy or without risks Robert PestonBBC business editor Read Robert's blog | Returning Jaguar to profitability will neither be easy or without risks Robert PestonBBC business editor Read Robert's blog |
| The car workers union, Unite, has said that Tata was the preferred bidder for the company. | The car workers union, Unite, has said that Tata was the preferred bidder for the company. |
| BBC business editor, Robert Peston said: "Tata will commit to following an existing five year plan to invest in and develop the car manufacturing businesses. " | BBC business editor, Robert Peston said: "Tata will commit to following an existing five year plan to invest in and develop the car manufacturing businesses. " |
| "Jaguar and Land Rover require hundreds of millions in investment over the next few years. | "Jaguar and Land Rover require hundreds of millions in investment over the next few years. |
| "And returning Jaguar to profitability will neither be easy or without risks," he added. | "And returning Jaguar to profitability will neither be easy or without risks," he added. |
| Robert also said that, to reassure the workforce, Ford will inject £300m into Jaguar and Land Rover pension funds. | Robert also said that, to reassure the workforce, Ford will inject £300m into Jaguar and Land Rover pension funds. |
| Jaguar losses | Jaguar losses |
| In January, Tata launched the world's cheapest car, the Nano, priced at $2,500 (£1,250). | In January, Tata launched the world's cheapest car, the Nano, priced at $2,500 (£1,250). |
| By contrast, the starting price for Jaguar's latest sports car, the XF is more than £32,000 ($64,000). | By contrast, the starting price for Jaguar's latest sports car, the XF is more than £32,000 ($64,000). |
| Tata unveiled the world's cheapest car the "Nano" this year | Tata unveiled the world's cheapest car the "Nano" this year |
| Ford has never given any details about Jaguar's financial performance. | Ford has never given any details about Jaguar's financial performance. |
| But it is thought that Ford has invested about $10bn in Jaguar since buying it in 1989, for $2.5bn. | But it is thought that Ford has invested about $10bn in Jaguar since buying it in 1989, for $2.5bn. |
| Despite that investment, analyst say that Jaguar has never made a profit for Ford. | Despite that investment, analyst say that Jaguar has never made a profit for Ford. |
| However, Land Rover has been profitable under Ford's ownership. | However, Land Rover has been profitable under Ford's ownership. |