Ford adds to liquidity with Jaguar, Land Rover sale

0 Comments | USA TODAY, March, 2008 | by Sharon Silke Carty

DETROIT -- While the $1.7 billion that Ford Motor will net on the sale of Jaguar and Land Rover to India's Tata Motors looks paltry compared with what it paid, every bit of cash it gains will help it weather the current economic downturn, industry watchers say.

Ford and Tata announced the deal Wednesday for Tata to get the two iconic brands for $2.3 billion. But Ford also promised to inject $600 million into Jaguar and Land Rover's pension funds at the deal's close.

The Detroit automaker paid $2.5 billion for Jaguar alone in 1990, and has poured almost $10 billion into attempting to turn the brand around. It paid $2.8 billion for Land Rover in 2000.

But Ford needed to cut its losses, says David Cole, chairman of the Center for Automotive Research. ...