The announcement ends a nearly year-long auction of the brands, which are being sold by Ford as an effort to simplify its offerings as part of a broader restructuring plan. Tata initially was only interested in the Land Rover operation, which is popular in India, but embraced a deal for the two brands after Ford decided against splitting the assets.
Company chairman Ratan Tata in a statement called the deal "a momentous time for all of us at Tata Motors." The automaker, perhaps best known for the $2,500 Nano it introduced in its home market, is hopeful that Jaguar and LR, which Tata called "two iconic British brands with worldwide growth prospects," will be the springboard the company needs to expand its operations in Europe and the U.S.
Ford, which announced last month it would not reach its goal of returning to profitability in 2009, is taking a loss to get the British brands off of its books. The automaker, which bought Jaguar for $2.5 billion in 1989 and added Land Rover for $2.7 billion in 2000, will contribute $600 million of its proceeds to Jaguar and Land Rover's pension plans. It will also provide information technology and accounting services and access to test facilities, and Ford Motor Credit Co. will continue to provide financing for Jag and Land Rover dealers. - Lou Whiteman
See Tata's release
See TheDeal.com story updating Ford's restructuring
An ambitious plan by India's Tata Motors Ltd. to build its standing in the West officially took root Monday, as the manufacturer finally 
