Ford Motors has decided to sell the Jaguar and Land rover to India’s Tata Motors Ltd for $2.3 billion cash. This deal was announced on Wednesday.

Chairman of Tata Sons and Tata Motors, Ratan N Tata, said, “We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavor to preserve and build on their heritage and competitiveness, keeping their identities intact.”

Jaguar and Land rover seems to be a mistake of Ford Motors. Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. Jaguar sales were down during the last year in U.S due to its conservative styling. However, Land rover gave the profit of $1.5 billion last year.

“Jaguar and Land Rover are terrific brands. We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata’s stewardship. ” Ford motors said.

Another important aspect of this deal is that Ford has also committed to provide engineering support, including research and development, plus information technology, accounting and other services.

This is a good news for 16000 employees who are working for Jaguar and Land rover. Chairman of Tata said, ” 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.”

Jaguar founded in 1922. First design of Jaguar appeared in 1948 as the premium brands for luxury saloons and sports cars. Land Rover, which was founded in 1948 always recognized as the ultimate in four-wheel drive vehicles.

Tata Motors Limited (टाटा मोटर्स), is India’s largest passenger automobile and commercial vehicle manufacturing company. It is a part of the Tata Group which is one of the world’s largest manufacturers of commercial vehicles and known for its hatchback passenger vehicle Tata Indica. The company generated revenues of $7.2 billion in 2006-07. It was the first Indian automobile company to list on the New York Stock Exchange. The OICA ranked it as the world’s 21st largest vehicle manufacturer, based on figures for 2006.

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