Just as the brands were starting to turn a profit, Ford has decided to cut all ties with Jaguar and Land Rover when they are eventually bought by India’s Tata Motors.
Initially it was expected Ford would keep a stake in Jaguar and Land Rover to protect its supply contracts for certain components such as engines, however it seems this is not the case.
“There is no need for it. Ford really wants to concentrate on its North American operations, that is the whole reason why it is selling Jaguar and Land Rover.”
The Indian media are reporting that Tata Motors is preparing for an outright purchase of the brands, tipped to be worth between $1.5 billion and $2.0 billion.
“Ford has decided not to retain a minority stake, as it is convinced about the future development of these two brands in the hands of the Tatas,”
Ford has maintained a minority stake in Aston Martin when it sold the luxury carmaker last March, although Tata will continue to use Ford engines and other parts in the future, this is as far as Ford’s involvement will go following the sale.