The rumor mill has been working overtime on the topic, but Ford has just officially announced that they've entered into an agreement to sell their premium Jaguar / Land Rover operation to Indian manufacturer Tata Motors.

Last August, the American automaker decided to 'explore its options' for the troublesome division, hoping to free up some cash and focus on its core business and turnaround efforts.


The sale of Jaguar / Land Rover is expected to close by this summer, though it's still subject to applicable regulatory approvals. Upon closing, Tata will pay about $2.3 billion US dollars for the division, with Ford contributing about $600 million to pension plans.

"Jaguar and Land Rover are terrific brands," said Alan Mulally, president and CEO, Ford Motor Company. "We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata's stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all."