• USA Today, Wednesday, March 26, 2008 12 PM

India's Tata Motors this morning made the long-expected announcement that it is acquiring British automakers Jaguar and Land Rover from Ford for $2.3 billion. It says it will continue building the vehicles in the U.K., and doesn't anticipate any significant changes to the work force at Jaguar and Land Rover.

Although the transaction has been rumored since July, it remains stunning to think of Ford selling its premium British brands to Tata, a specialist in inexpensive, small cars that wants to become a high-end player. Mike O'Driscoll, managing director of Jaguar under Ford, says he is encouraged that the new owners will let the Jaguar staff run the company with little interference.

The sale to Tata is central to CEO Alan Mulally's strategy to turn Ford around by refocusing the automaker on its core brands. At the same time, the deal catapults Tata into a high-profile position in the global auto industry. It is controlled by Tata Group, a privately held Indian conglomerate with 98 operating companies, "They are very serious, very well funded and not inexperienced in cars," says Tom Purves, CEO of BMW North America.

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