Don Hume, Director - Corporate & Government Affairs, Jaguar-Land Rover said the ownership of Jaguar-Land Rover would be transferred to Tata once the deal is completed. He told CNBC-TV18 that Ford would remain a very close associate, in terms of supplying a number of components and other support activities. He expects the partnership to carry on for many years.

Excerpts from CNBC-TV18’s exclusive interview with Don Hume:

Q: The press statement says that this deal is likely to end by the next quarter. What kind of regulatory approvals are pending at this point in time?

A: It is just normal processes that these sort of business arrangements have to go through. We don’t envisage any problems. As I say, it is a normal process.

Q: There were negotiations both from the Tatas and the Ford Motor Company, as far as pension benefits are concerned. Have all those issues been ironed out at this point?

A: As we understand it, there are no roadblock issues now. It is a process to complete.

Q: Does this mean that in the plants of both Jaguar and Land Rover, the ownership will now be transferred to the Tatas?

A: The ownership is still with Ford, until the contract is completed. At that point, Tata would take over the overall ownership.

Q: What is the nature of the relationship that would now be between Ford, Jaguar and Land Rover?

A: Essentially, the Jaguar-Land Rover ownership will transfer to Tata once the deal is completed. Ford will remain a very close associate in terms of supplying a number of components and other support activities. So, we would expect the partnership to carry on for many years.

Q: As far as the agreement between the two companies are concerned, has there been any specific conditions that have been levied, in terms of the kind of money that Tata Motors will have to pump into the pipelines of both Jaguar and Land Rover over a period of time?

A: I cannot answer that. I am afraid I am not aware of any detailed discussions.

Q: Has there been any sort of commitment given in terms of the kind of money that has to be given, at least in terms of production for jaguar and Land Rover?

A: Again I am afraid I am not party to those discussions.

Q: As far as this figure of USD 2.3 billion is concerned and the pension benefits that have gone up to USD 600 million. Is there any specific reason behind it?

A: The figure will be finalised at the point of completion and not before. So, basically there is still flexibility in that.

Q: Your latest model XF has got a big responsibility of helping Jaguar turnaround in terms of financial performance. What has been the response to that model till now?

A: It is incredibly successful already. It went on sale in the UK and other major markets at the beginning of this month.

Q: What have been the bookings that you have received so far? How many have you sold already?

A: We had over 15,000 advance orders for it when it went on sale. In the UK, some 2,000 will have been sold in its first month. We are seeing similar sort of success in other markets as well. So, it is a great success and a great hope for the future of Jaguar.

Q: The next in line is probably the new XJ? When is that expected? We also learn from sources that you are trying to introduce a coupé model into the market. Is that true?

A: We don’t talk about future models as a matter of policy. Suffice to say that we actually have a number of exciting models there that will emerge over the coming years.

Q: As a part of this USD 2.3 billion, over and above this, what is the debt component that Tata Motors would be taking? We have heard that USD 30 billion is the debt on the book of Ford and USD 5 billion is attributable only to JLR. Can you clarify how much is the debt component?

A: No, I cannot I am afraid. I don’t think we are going into the details of the agreement.

Q: When this deal initially started, there were issues in terms of the image that the Tatas stood for, given the fact that they were launching a low cost model here in India. Have all those issues been put to rest that the identity of the luxury brands would not be affected?

A: I don’t believe there is anyone, involved closely with Jaguar and Land Rover that had any issues. We recognize the breadth of Tata’s business and that it covers a wide spectrum of interest. I don’t think there are any issues there.

Q: The kind of issues that have been raised by the union, in terms of retaining employees and pension benefits. Have all those been sorted out, or is that subject to further negotiation?

A: We understand from the unions that they are very happy with the agreement that has been reached.