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Indian Automaker Tata Wins Bidding For Jaguar, Land Rover Brands

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By TOM KRISHER, The Associated Press

Published: January 4, 2008

DETROIT - An Indian car maker that will unveil the world's cheapest car next week soon may produce two of the world's premier brands as well.

Ford Motor Co. named Tata Motors Ltd. the top bidder for its Jaguar and Land Rover brands Thursday and entered into "focused negotiations at a more detailed level," meaning Tata was named preferred bidder for the storied British automakers.

"While no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks," Lewis Booth, executive vice president of Ford's European units, said in a statement.

Jaguar and Land Rover employees in the United Kingdom were told about the negotiations Thursday morning shortly before the company made the announcement.
Ford executives have said they expect to sell the two British automakers this year.

Ford spokesman Jay Ward in London would not say how much Tata bid for the automakers, nor would he say whether two other bidders, Indian automaker Mahindra & Mahindra Ltd. and U.S. private equity firm One Equity Partners LLC, still were in the running. Last month people close to the negotiations with Ford said potential suitors had submitted bids for both companies that ranged from $1.5 billion to $2 billion.

Tata plans to unveil its ultracheap $2,500 car next week at an auto show in New Delhi.

Company Chairman Ratan Tata said in a recent interview that acquiring Jaguar and Land Rover would help bring global visibility to his group - a sprawling conglomerate little-known outside India.

Industry analysts have said Ford wants to find a buyer that would preserve the Jaguar and Land Rover heritage and jobs in the United Kingdom.

Ford, which is the top auto seller in the United Kingdom, doesn't want to rankle British customers, they said.

Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000, joining them with Aston Martin and Volvo to form its Premier Automotive Group.

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