Ford put Land Rover and Jaguar on the block in June after determining the British nameplates were no longer a core part of its business. Though the meltdown of debt markets has delayed the auction, Ford has maintained for months that it hopes to announce a winning bidder by year’s end, with Indian automakers Tata Motors Ltd. and Mahindra & Mahindra Ltd. joining private equity firm One Equity Partners as finalists.
Ford president for the Americas Mark Fields told Reuters Tuesday that the company is still going through the sales process and is unlikely to close a deal before year’s end. Still, he expects the deal to be completed in the first quarter. “First and foremost in our minds is to make sure that we sell to a buyer that looks to grow (the brands)," Fields told reporters at a presentation at Ford’s Dearborn, Mich., training facility according to the report.
Indian newspapers reported last week that bids for the brands are coming in at between $1.5 billion and $2.2 billion. Tata is considered by many watchers to be the favorite to win the auction after securing the endorsement of British trade unions. Tata already has a strong presence in the U.K., with its parent, Tata Group, owning Tetley Tea and steelmaker Corus Group plc. — Lou Whiteman
See TheDeal.com story on Ford's decision to sell
See Reuters report
See Dealscape post on the union endorsement of Tata
See TheDeal.com story on Tata's interest
A top executive at Ford Motor Co. said Tuesday that the company expects to complete a sale of its Jaguar and Land Rover brands in early 2008, despite earlier insistence it would close by the end of 2007.
