By Swati Khandelwal, CNBC-TV18

Tata Motors has bought Jaguar and Land Rover for USD 2.3 billion. Ford said it would pay about USD 600 million towards the pension plan, reports CNBC-TV18.

Ford will also supply power trains, stamping, and other components. Along with that, it will provide engineering support, including research and development. Ford Motor Credit will provide financing to JLR dealers for 12 months. There will be no change in the terms of employment for JLR employees. Ford added that the deal comprises of brands, manufacturing plants, and IPR. The deal will be closed by the end of the next quarter.

The Ford Union said Tatas expect to employ more people and they are happy with the pension plan.

Ratan Tata, Chairman, Tata Group said he is very pleased with JLR being a significant part of the auto business. Tata Motors would keep the identities of Jaguar and Land Rover intact, he added. “We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business,” said Tata.

Tony Woodley, Joint General Secretary of Unite - the union of JLR, said if JLR had to be sold then the Tatas was the best option. “We would have preferred that Ford keep these companies in the family, especially with Land Rover being so profitable," he said. "But with the commitments that the Tatas have given to the future of Jaguar-Land Rover and the long-term supply agreements for components, especially engines from Bridgend and Dagenham, we are obviously pleased they are in the game.”

Timeline of JLR deal:

After months of fevered speculation and several postponements, Tata Motors is all set to bring the Land Rover and Jaguar brands into its fold.
 
On June 11, 2006, Ford announced its decision to sell off Jaguar and Land Rover. About a month later, Tatas' interest in JLR became public. On August 24, Ratan Tata confirmed his interest for the first time on CNBC-TV18. Then, in November, the workers union approved Tata as its choice for a new owner. After that there was a lull with Christmas around the corner.

But in the New Year, on January 3, Ford said Tata Motor was the preferred bidder.