Friday 1st December 1989
Ford acquired Jaguar Cars for $2.5 billion. Under Ford’s ownership Jaguar expanded its range of products with the launch of the S-Type in 1999 and X-type in 2001. After Land Rover’s May 2000 purchase by Ford, it became closely associated with Jaguar. In many countries they shared a common sales and distribution network (including shared dealerships), and some models shared components, although the only shared production facility was Halewood Body & Assembly, for the X-Type and the Freelander 2. However operationally the two companies were effectively integrated under a common management structure within Ford’s PAG.
On 11 June 2007, Ford announced that it planned to sell Jaguar, along with Land Rover and retained the services of Goldman Sachs, Morgan Stanley and HSBC to advise it on the deal. The sale was initially expected to be announced by September 2007, but was delayed until March 2008. Private equity firms such as Alchemy Partners of the UK, TPG Capital, Ripplewood Holdings (which hired former Ford Europe executive Sir Nick Scheele to head its bid), Cerberus Capital Management and One Equity Partners (owned by JP Morgan Chase and managed by former Ford executive Jacques Nasser) of the US, Tata Motors of India and a consortium comprising Mahindra and Mahindra (an automobile manufacturer from India) and Apollo Management all initially expressed interest in purchasing the marques from the Ford Motor Company.
Before the sale was announced, Anthony Bamford, chairman of British excavator manufacturer JCB had expressed interest in purchasing the company in August 2006, but backed out upon learning that the sale would also involve Land Rover, which he did not wish to buy. On Christmas Eve of 2007, Mahindra and Mahindra backed out of the race for both brands, citing complexities in the deal.
On 1 January 2008, Ford formally declared that Tata was the preferred bidder. Tata Motors also received endorsements from the Transport And General Worker’s Union (TGWU)-Amicus combine as well as from Ford. According to the rules of the auction process, this announcement would not automatically disqualify any other potential suitor. However, Ford (as well as representatives of Unite) would now be able to enter into detailed discussions with Tata concerning issues ranging from labour concerns (job security and pensions), technology (IT systems and engine production) and intellectual property, as well as the final sale price. Ford would also open its books for a more comprehensive due diligence by Tata. On 18 March 2008, Reuters reported that American bankers Citigroup and JP Morgan would finance the deal with a USD 3 billion loan.
On 26 March 2008, Ford announced that it had agreed to sell its Jaguar and Land Rover operations to Tata Motors of India, and that they expected to complete the sale by the end of the second quarter of 2008. Included in the deal were the rights to three other British brands, Jaguar’s own Daimler, as well as two dormant brands Lanchester and Rover. On 2 June 2008, the sale to Tata was completed at a cost of £1.7 billion.
On 18 January 2008, Tata Motors, a part of the Tata Group, established Jaguar Land Rover Limited as a British-registered and wholly owned subsidiary. The company was to be used as a holding company for the acquisition of the two businesses from Ford – Jaguar Cars Limited and Land Rover. That acquisition was completed on 2 June 2008. On 1 January 2013, the group, which had been operating as two separate companies (Jaguar Cars Limited and Land Rover), although on an integrated basis, underwent a fundamental restructuring. The parent company was renamed to Jaguar Land Rover Automotive PLC, Jaguar Cars Limited was renamed to Jaguar Land Rover Limited and the assets (excluding certain Chinese interests) of Land Rover were transferred to it. The consequence was that Jaguar Land Rover Limited became responsible in the UK for the design, manufacture and marketing of both Jaguar and Land Rover products.