Ford, Tata Seen Signing Jaguar MoU Within 2 Weeks

Fri Mar 7, 2008 11:06pm GMT
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By Pete Harrison

LONDON (Reuters) - India's Tata Motors (TAMO.BO: Quote, Profile, Research) is expected to sign a memorandum of understanding to buy Ford Motor Co's (F.N: Quote, Profile, Research) luxury UK brands Jaguar and Land Rover in the next two weeks, a labor union negotiator said on Friday.

There are no roadblocks holding back the deal, but negotiations have proved complex, said Dave Osborne, national secretary for vehicle building at the Unite union.

Unite is the main union representing workers at Land Rover and Jaguar, and has about 12,000 members there.

A separate source close to the deal also said it could be concluded "within weeks."

Negotiations are now focusing on the future relationship between Ford and the two luxury brands, which will continue to take Ford engines and body parts and will share technology and intellectual property rights, the source added.

All Jaguar and Land Rover's petrol engines are built in a Ford plant in south Wales, supporting hundreds of jobs there. Diesel engines come from Ford's factory in Dagenham, east London.

STAKE IN THE SAND

Tata, India's top vehicle maker, has been in talks with Ford since it was chosen as the front-runner to buy the units a few days into 2008.  Continued...

 
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