Car giant Ford is to sell its luxury UK-based car marques Jaguar and Land Rover to Indian company Tata.
Car giant Ford has sold 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.
Tata, India's biggest vehicle maker, is paying $2.3bn (£1.15bn) for the British marques after months of negotiations over the price.
The lengthy sale process started last June when Ford announced its intention to sell the companies as a package.
The negotiations 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.
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.
Tata said the transfer of ownership is expected to close by the end of the summer, subject to applicable regulatory approvals.
Union backing
"We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business," the firm said.
The car workers union, Unite, has said that Tata was the preferred bidder for the 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.
"We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business."
BBC business editor Robert Peston says 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 and returning Jaguar to profitability will neither be easy or without risks, he says.
Our business editor adds that, to reassure the workforce, Ford will inject £300m into Jaguar and Land Rover pension funds.
Jaguar losses
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).
Tata unveiled the world's cheapest car the "Nano" this year
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.
Despite that investment, analysts say that Jaguar, which has plants at Castle Bromwich, West Midlands and Halewood, Merseyside, has never made a profit for Ford.
However, Land Rover, which is based in Solihull, West Midlands, has been profitable under Ford's ownership.
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