'Momentous' deal as Tata completes JLR takeover; In association with BUSINESS VENTURE Car makers will retain their identities.

Byline: BY ALISTAIR HOUGHTON Daily Post Business Staff

INDIAN car giant Tata Motors yesterday described the completion of its purchase of Jaguar Land Rover (JLR) as a "momentous" occasion in its history.

Tata yesterday completed its pounds 1.17bn takeover of the two Halewood-made brands, which employs some 2,200 people.

The agreement secures the medium-term future of the Halewood plant as Tata has committed to supporting JLR's existing business plans.

Luxury brand Jaguar now slots into Tata's brand portfolio of vehicles alongside the pounds 1,200 Nano, billed as the world's cheapest car.

Company owner Ratan Tata said: "This is a momentous time for all of us at Tata Motors.

"Jaguar and Land Rover are two iconic British brands with worldwide growth prospects. We are looking forward to extending our full support to the Jaguar Land Rover team to realise their competitive potential.

"Jaguar and Land Rover will retain their identities and pursue their respective business plans as before.

"We recognise the significant improvement in the performance of the two brands, and look forward to this trend continuing in the coming years.

"It is our intention to work closely to support the JLR team in building the success and preeminence of the two brands."

Tata also confirmed that David Smith will become JLR chief executive. He has been acting chief executive since the death of Geoff Polites in April.

Mr Smith said: "We are very pleased with the association with Tata Motors. We look forward to a sustained bright future for the company and its stakeholders."

Halewood builds Land Rover's successful Freelander 2 vehicle and the Jaguar X-Type, whose sales have been disappointing.

But JLR has created a new concept version of a new "baby Land Rover", known as the LRX, and reports suggest the vehicle is likely to be built at Halewood.

Tata and Ford have also entered into long-term agreements for the supply of engine and other components to Jaguar Land Rover.

The two companies will also collaborate in design and development.

That ensures the future of Ford suppliers such as Getrag, which employs hundreds of people at another Halewood plant.

Ford has also agreed to pump pounds 305m into the JLR pension plan.

Tata also owns steelmaker Corus, teamaker Tetley andCheshire chemicals firm Brunner Mond. Trade unions have welcomed Tata's takeover, saying that, if a sale has to happen, then Tata's industrial expertise makes it the best bidder.

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CAPTION(S):

The deal is done . . . Lewis Booth, left, of Ford; David Smith, centre, of Jaguar Land Rover; and Tata chairman Ratan Tata, put pen to paper yesterday; The Halewood plant, now owned by Tata