Ford has sold its Jaguar and Land Rover brands to Indian manufacturer Tata for $2.3 billion (£1.15 billion) after many months of negotiations.
The sale was made by Ford so that it could focus on its US car business, which is currently making significant losses.
Ford will continue to provide engines and certain components and technologies for existing cars, and its associated credit company will provide financing for a 12 month transitional period. No major changes are expected to be made to employee contracts, and Tata maintains that it has “enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact.”
The purchase will allow Tata to expand its operations and influence in the passenger car market outside of its home country.