Well, they say that the devil is in the details. And that’s exactly what Ford and Tata Motors of India are now concentrating on as they appear to be finishing up negotiations for the sale of Jaguar and Land Rover.
Those in the know say that there are five major issues on which the two sides are now focusing. These include intellectual property, consumer credit, pensions and residual values for vehicles already leased.
Powertrains is a major issue and is expected to keep Ford tangled up with Jaguar and Land Rover after the sale. And the issue of intellectual property is a concern because the Jaguar X-type sedan as well as other Jaguar products are based on the same architecture as other mainstream Ford models. Ford fears that Tata could strip down the X-type or some other vehicle and sell it as a Tata sedan in India or in another market.
Ultimately, there seems to be no deal breakers but “hefty lifting” is still necessary before the process can be completed.
Tata Motors is said to be offering $2 billion for the two marquees. Ford is said to hope to make an announcement in February.
More details can be found at the Detroit News. Our take? So, auto business fans, stay cool for just a little bit longer as Ford and Tata wrap things up. Then there’s plenty of time to puruse the industry to see what next will occupy are interest in the daily soap opera that is the world’s automobile industry.