MercoPress. South Atlantic News Agency

Tata Motors takes over Jaguar and Land Rover this week

Jaguar & Land Rover have a new home: India

Ford is expected to announce on Wednesday the sale of Jaguar and Land Rover to India's Tata Motor's reported the Financial Times. The approximately 2 billion US dollars deal will include a pledge by Ford to contribute to the two brands' pension fund, and by Tata to continue buying engines from Ford, sensitive points with trade unions.

Ford is not commenting on the timing of the announcement, but recently said there were "no major roadblocks" preventing it. Tata said its discussions with Ford were ongoing, but declined to comment. Ford purchased Jaguar in 1989 for 2.5 billion US dollars and in 1990, Land Rover for 2.75 billion US dollars. FT also announced that in another potential boost to the two brands' future, Fiat's chief executive confirmed that he was interested in working with them if the sale to Tata goes through. "I think I would be more than pleased to collaborate with Tata in terms of Jaguar/ Range Rover, if in fact it ends up being owned by them" Sergio Marchionne told the FT in an interview. Mr Marchionne added that the two companies had held no talks on the brands with Tata because of the negotiations with Ford. Some of the conditions of Ford's sale of the brands to Tata "may prohibit the collaboration with us" he added. Ratan Tata sits on Fiat's board, and Fiat and Tata produce cars, engines and transmissions together in India. Early in Ford's long-running auction of the two brands, Fiat turned down an invitation to bid for them. However, the Italian carmaker is interested in introducing rear-wheel drive vehicles to the range of Alfa Romeo, the premium brand it is reintroducing to the US. Land Rover and Jaguar's US distribution network might also be interesting to Alfa, Mr Marchionne said: "I think the Range Rover/Jaguar distribution network in the United States, either together or stand-alone, would have all the requisite elements for Alfa".