DETROIT – After spending billions of dollars on Jaguar and Land Rover, Ford Motor Co. gave up on the storied British automakers Wednesday and unloaded them to India’s Tata Motors Ltd. for a mere third of the original purchase price.
Ford’s fortunes have changed, with slumping U.S. sales and billions in losses. The fire-sale price comes as the Dearborn, Mich.-based automaker concentrates on its main brands.
“You have to cut your losses at some point,” said Erich Merkle, vice president of auto industry forecasting for the consulting firm IRN Inc. in Grand Rapids. “It’s been draining them of cash and resources.”
Tata is India’s oldest and largest conglomerate, with holdings in steel, information technology and autos. It should have the cash to save Jaguar and Land Rover and develop new products to better compete with luxury automakers, Merkle said. Continue reading “Ford sells Jaguar and Land Rover” →