Tata and Ford confirm deal for Jaguar and Land Rover

Ford will confirm the sale of Jaguar and Land Rover to India's Tata Motors in New York today at around 12:00 GMT. The fee is reported to be over $2 billion (£1 billion).

As part of the deal, signed late on Tuesday, Ford will be liable for around £300 million of pension deficits at Jaguar and Land Rover.

Ford declined to comment on Tuesday, stating their first responsibility was to communicate with their employees, rather than the press.

Rumours had been circulating about the deal since the beginning of March, but a concrete decision was delayed as the two companies debated the nature of any future relationship, including the sharing of technology and the provision of Ford engines and body parts for the two brands.

The deal is part of Tata's scheme to secure a substantial foothold in markets outside of the subcontinent, but analysts have asked questions about how they will incorporate their newly purchased luxury brands into their current portfolio, which consists mainly of sturdy trucks, functional passenger cars and the Nano, the world's cheapest car.

Experts have also questioned how Jaguar will fit into the deal. Land Rover has generated three years of record sales with its SUVs, but Jaguar has not been nearly as successful.

Ford decided to sell after a loss of $2.7 billion (£1.3 billion) in 2007 and $12.6 billion (£6.3 billion) in 2006. Their aim now is turn around loss-making operations in North America. The deal also includes a commitment by Tata to continue buying engines from Ford.

How exactly jobs in Ford's south Wales plant, which produces all the petrol engines used in Jaguar and Land Rover vehicles, will be affected remains to be seen.