Ford Sells Jaguar, Land Rover To Indian Carmaker For $2.3 Billion

New Delhi, India (AHN) - India's leading carmaker, Tata Motors, has bought ailing Ford Motor Co.'s Jaguar and Land Rover luxury car brands for $2.3 billion.

The Indian firm announced the deal Wednesday after months of negotiations with the American automaker. Ford sold both British car brands at less than half the price it paid for them. The firm bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000.

Tata will use cash reserves and new loans to pay the purchase. The acquisition gives Tata access to British car technology and instantly joins the ranks of expensive carmakers.

Tata, which manufactures cars priced at $2,500 for the domestic market, will be selling such brand as the Jaguar XK priced at $80,000.