Tata Motors Ltd. Bought Jag and Land Rover for $2.3 B

For those that don’t read main stream media, Tata Motors Ltd. bought Jaguar and Land Rover from Ford Motor Co. for a small sum of $2.3 billion. However, Ford will contribute up to $600 million to Jaguar and Land Rover pension plans. And Ford will continue to supply engines and related components while providing engineering support and financing for dealers for up to a year.

So those keeping score at home and read my earlier blog, Tata Motors took a loan out for $3 billion, which was to be used in buying the luxury brands from Ford and to manufacture of the car Nano. The Nano will be sold as the cheapest car (roughly $2,500) to help bring automotive transportation to the mainstream India population and maybe abroad. So, Tata will be selling the cheapest car, yet have two very British, very Luxury brands to deal with in the future. Wonder how this will all work out?