Ford sells Jaguar, Land Rover to Indian automaker

DETROIT (AP) - Ford stands to come away with $1.7 billion when it's all over, by selling its Jaguar and Land Rover brands to India's Tata Motors.

Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000. But the automaker has been struggling and wants to focus on its main brands.

A statement from Tata says the company will pay $2.3 billion for Jaguar and Land Rover, roughly a third of what Ford paid for the two luxury brands. Ford will then have to pay about $600 million into the Jaguar-Land Rover pension fund when the deal closes.

One analyst says Tata should have the cash to rescue the brands and develop new products to better compete with luxury automakers.

(Copyright 2008 by The Associated Press. All Rights Reserved.)