FORD has recruited the accountancy group KPMG to examine the books at Jaguar and Land Rover, two of Britain’s best-known car companies, ahead of an expected £1 billion sale later this year.

Despite mounting speculation in recent weeks, Ford has declined to confirm it will sell the famous marques. But the appointment of KPMG, which has been given a mandate to revamp the companies’ accounts so that they are in a proper form to be examined by would-be buyers, appears to make a sale inevitable.

KPMG’s main task will be giving a clear picture of Jaguar and Land Rover’s performance as businesses separate from the influence of Ford, which has owned them since 1989 and 2000 respectively.

“They need to sort out things like the real cost of the parts that Ford supplies to the two companies. It’s the extrication of the parent company from the figures that is the difficult part of the job,” said one senior industry source.

It is understood that KPMG has also been asked to examine the companies’ pension liabilities. At the end of 2005 – the last year for which full accounts are publicly available – Jaguar had a deficit of £298.2m and Land Rover £193.5m.

The 2006 accounts are expected to be filed within the next few months, with deficits likely to have shrunk thanks to rising stock markets and higher returns from the bond market.

Jaguar and Land Rover employ 16,000 workers in the UK, concentrated in plants in the West Midlands and Mersey-side. Together they make about 300,000 cars a year. While Jaguar has made big losses, Land Rover is thought to be in the black.

Last year The Sunday Times revealed that Ford planned to sell the two firms as a single unit. The sale was then shelved while Aston Martin, another British marque, was auctioned.

This month Ford confirmed American reports that it had appointed three investment banks – Goldman Sachs, Morgan Stanley and HSBC – to examine the marques’ future. The company then said it had made no firm decision on whether to proceed with a sale.

The involvement of KPMG in accounting work indicates that a sale is almost certain, car industry sources said last night. Ford declined to comment.

Industry experts say a private-equity firm is the most likely buyer for the British firms. Estimates of the prices range from £1 billion to £3 billion.

“It’s too big and complicated for a vanity investor. It needs someone with serious motor-industry expertise,” said one source. Cerberus, the American private-equity group that recently bought Chrysler, has been tipped as a potential suitor.

Jaguar has been a disastrous investment for Ford. It bought the British icon for £1.6 billion, £1.1 billion of which was for “goodwill” – the value of the brand. The Sunday Times revealed last year that Ford has invested more than £4 billion for little return.

But some analysts believe Jaguar could prove a good investment. Ford has put a lot of money into aluminium construction technology, and the styling of its new XF saloon has been well received.

Last year Ford lost $12.7 billion (£6.4 billion) and is racing to restructure under the burden of crippling pension and health-care costs.

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