Jaguar-Land Rover sale agreed

By Pete Harrison and Mathieu Robbins

LONDON (Reuters) - U.S. automaker Ford has agreed to sell its luxury brands Jaguar and Land Rover to India's Tata Motors for more than $2 billion (1 billion pounds), according to a source familiar with the matter.

Ford, which signed the deal on Tuesday, plans to publicly announce the transaction in New York on Wednesday, said another source.

The deal will also see Ford pay about 300 million pounds into Jaguar and Land Rovers' pension funds, according to unions.

Ford declined to comment, adding "our first responsibility is to communicate with our employees."

The sale had been expected at the start of this month, but it was delayed as the two firms discussed their future relationship, including technology sharing and Ford's provision of engines and body parts for the two brands.

Tata, India's top vehicle maker, has been in talks with Ford since it was chosen as the frontrunner to buy Jaguar and Land Rover a few days into 2008.

Tata is pursuing the deal to gain a substantial foothold outside India.

But analysts have questioned how Tata will incorporate the luxury brands into its stable of sturdy trucks and functional passenger cars, including the Nano, the world's cheapest car which it unveiled in January.