FDM Group Regulatory News (FDM)

26 Mar 2008 12:45

Ford Motor Co26 March 2008 NEWS Contact: Media: Media: Equity Investment Fixed Income Shareholder Inquiries:John Gardiner Tom Hoyt Community: Investment Community: 1.800.555.5259 or44.207.025.6334 313.322.1524 Larry Heck Dave Dickenson 1.313.845.8540Jgardin2@ford.com thoyt@ford.com 1.313.594.0613 1.313.621.0881 stockinf@ford.com fordir@ford.com fixedinc@ford.com Ford Motor Company Announces Agreement to Sell Jaguar Land Rover to Tata Motors DEARBORN, Mich., March 26, 2008 - Ford Motor Company (NYSE:F) announced todaythat it has entered into a definitive agreement to sell its Jaguar Land Roveroperations to Tata Motors. The transaction is the culmination of Ford's decision last August to explorestrategic options for the Jaguar Land Rover business, as the company acceleratesits focus on its core Ford brand and "One Ford" global transformation. The sale is expected to close by the end of the next quarter and is subject tocustomary closing conditions, including receipt of applicable regulatoryapprovals. The total amount to be paid in cash by Tata Motors for Jaguar Land Rover uponclosing will be approximately US $2.3 billion. At closing, Ford will thencontribute up to approximately US $600 million to the Jaguar Land Rover pensionplans. "Jaguar and Land Rover are terrific brands," said Alan Mulally, president andCEO, Ford Motor Company. "We are confident that they are leaving our fold withthe products, plan and team to continue to thrive under Tata's stewardship. Now,it is time for Ford to concentrate on integrating the Ford brand globally, as weimplement our plan to create a strong Ford Motor Company that deliversprofitable growth for all." "This is a good agreement. It provides the Jaguar Land Rover management team andemployees with the assurances needed to maintain their focus on delivering thebest results for the business," said Lewis Booth, executive vice president, FordMotor Company, who has responsibility for Ford of Europe, Volvo and Jaguar LandRover. "I am confident that, under its new owner, Jaguar Land Rover willcontinue to build upon the significant improvements and product successes it hasachieved in recent years." As part of the transaction, Ford will continue to supply Jaguar Land Rover fordiffering periods with powertrains, stampings and other vehicle components, inaddition to a variety of technologies, such as environmental and platformtechnologies. Ford also has committed to provide engineering support, includingresearch and development, plus information technology, accounting and otherservices. In addition, Ford Motor Credit Company will provide financing for Jaguar andLand Rover dealers and customers during a transitional period, which can vary bymarket, of up to 12 months. The parties believe these arrangements will support Jaguar Land Rover's currentproduct plans, while providing Jaguar Land Rover freedom to develop its ownstand-alone capabilities in the future that will best serve its premiummanufacturer requirements. The parties do not anticipate any significant changes to Jaguar Land Roveremployees' terms of employment on completion. Speaking about today's agreement, Mr. Ratan N. Tata, Chairman of Tata Sons andTata Motors, commented: "We are very pleased at the prospect of Jaguar and LandRover being a significant part of our automotive business. We have enormousrespect for the two brands and will endeavor to preserve and build on theirheritage and competitiveness, keeping their identities intact. We aim to supporttheir growth, while holding true to our principles of allowing the managementand employees to bring their experience and expertise to bear on the growth ofthe business." Jaguar Land Rover's employees, trade unions and the UK Government have been keptinformed of developments as the sale process progressed and have indicated theirsupport for the agreement. Speaking on behalf of Jaguar Land Rover, Geoff Polites, chief executive officer,said: "Jaguar Land Rover's management team is very pleased that Ford and TataMotors have come to an agreement today. Our team has been consulted extensivelyon the deal content and feels confident that it provides for the business needsof both our brands going forward. "We have also had the opportunity to meet senior executives from Tata Motors andthe Tata group," Polites continued. "They have expressed confidence in the teamthat has delivered significant improvements in Jaguar Land Rover's businessperformance. We feel confident that we can forge a strong working relationshipwith our new parent company, and we look forward to a bright and successfulfuture for Jaguar Land Rover." Ford Motor Company, a global automotive industry leader based in Dearborn,Michigan, United States, manufactures or distributes automobiles in 200 marketsacross six continents. With about 230,000 employees and about 100 plantsworldwide, the company's core and affiliated automotive brands include Ford,Lincoln, Mercury, Volvo and Mazda. The company provides financial servicesthrough Ford Motor Credit Company. For more information regarding Ford'sproducts, please visit http://www.ford.com/. Safe Harbor Statements included herein may constitute "forward-looking statements" withinthe meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions bymanagement and involve a number of risks, uncertainties, and other factors thatcould cause actual results to differ materially from those stated. We cannot becertain that any expectation, forecast or assumption made by management inpreparing these forward-looking statements will prove accurate, or that anyprojection will be realized. More detailed information about these and otherfactors that could affect future results is contained in our filings with theSecurities and Exchange Commission. Our forward-looking statements speak only asof the date of their initial issuance, and we do not undertake any obligation toupdate or revise publicly any forward-looking statement, whether as a result ofnew information, future events or otherwise. This information is provided by RNS The company news service from the London Stock Exchange