Tata, the Indian conglomerate that makes the world’s cheapest car, moved into the mainstream of the global car industry today with the purchase of Jaguar and Land Rover for £1.15 billion ($2.3 billion).

Tata, which makes vehicles in India and owns Corus, the Anglo-Dutch steelmaker, and Tetley’s Tea, has been in exclusive talks with Ford, the owner of the famous British marques, since the beginning of the year.

Ratan Tata, the group chairman, said: “We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact.

"We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.”

Visionary keen to steer Jaguar's future

Ratan Tata may soon own the marque and its factories when Ford offloads the luxury carmaker as part of the Land Rover package

• Tata to drive off with Jaguar and Land Rover

• Tata pulls ahead in race for Land Rover and Jaguar

BACKGROUND

• Tata deal drives Land Rover's future

• Plea for Ford to hold on to equity stake

• Tata working on ultra-green 'air car'

• Tata wants Ford man for Jaguar-Land Rover

• Times breaks the bad news to Tata bosses

Understated leader's bite is stronger than his bark

The news that Tata Steel is considering a takeover of Corus will come as no surprise to anyone who's met the man at the helm of India's family firm

BACKGROUND

• Throwing open a huge window on the world

• Keeping things in family may hinder progress

• From womb to tomb, from home to hospital, workers savour taste of life in a company town

• Tata instigates new age of empire

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Ford put the two brands on the market after suffering the worst losses in its history at $12.7 billion for 2006.

Alan Mulally, chief executive of the US car giant, said: “Jaguar and Land Rover are terrific brands. We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata’s stewardship.”

Unions have backed the deal because it safeguards, for the immediate future, the jobs of 13,500 people directly employed in the UK and others in overseas sales operations.

The number of employees is lower than the commonly quoted figure of 16,000. But the unions have also expressed concern about the longer-term future for manufacturing the brands in Britain.

Tony Woodley, joint general secretary of Unite, told the BBC this morning that he could not rule out the possibility of jobs disappearing overseas in the future.

In a statement he said: “We would have much preferred Ford to keep the companies in the family, so to speak, especially with Land Rover being so profitable.

"But with the commitments Tata have given to the future of Jaguar and Land Rover and the long-term supply agreements for components, especially engines from Bridgend and Dagenham, we're obviously pleased they are in the game.”

Unions are disappointed that Ford has refused to maintain a stake in Jaguar and Land Rover as it did when it sold Aston Martin last year.

Tata is most famous in the car industry for producing the Nano, its people’s car that sells for about £1,200.

The Nano, which was aimed at giving more people in India the chance to own a vehicle, will be introduced to Europe.

Richard Burden, Labour MP for Birmingham Northfield, said: “Both Jaguar and Land Rover are parts of the fabric of the manufacturing base of the West Midlands. They produce quality products in the high-value segment of the motor industry — an area in which the UK excels.

"Tata is a forward-looking global company. All the indications are that Tata recognises the huge potential of Jaguar and Land Rover to become part of its group in a way that maintains the pace of investment and product development at the same time as retaining the essential Britishness of the Jaguar and Land Rover brands.

"That will be vital to safeguarding thousands of jobs in the Midlands and elsewhere.”

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