“Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar/Land Rover business,” said Lewis Booth, Ford executive vice president with responsibility for Europe.

“There is still considerable work to do and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks.” Meanwhile, Tata Motors, said in Mumbai, on Thursday, that it was pleased with the progress in talks with Ford and hopeful of acquiring the iconic brands from Ford after being named as the preferred bidder by the US carmaker.

Tata Motors added that it was entering into a detailed discussion with Ford and was hopeful of a inking a final deal soon.

Positive discussions

“We have had positive discussions so far with Ford concerning the possible purchase of Jaguar/Land Rover and we are now entering a period of more focused and detailed negotiations,” a  Tata Motors spokesperson said said in a statement.

“We are pleased by the progress in the discussions to date and very positive about the prospects of this business going forward,” the statement said, adding the discussions were complex.

“We hope both parties can reach an agreement in the forthcoming weeks, though these are complex discussions and there is still much work that needs to be done before that position is reached,” it said.

Workers’ interests

Tata, along with Mahindra & Mahindra and US based private equity firm One Equity Partners, had emerged in November as the last bidders left in the race for the two luxury brands. An acquisition by Tata would represent the latest instance of an Indian company buying a high profile European industrial target as companies on the subcontinent flex their financial muscle to expand abroad and enter new markets.

Earlier, Tata Steel, in the last year bought Anglo-Dutch steelmaker Corus for $12.3 billion. The Indian company is regarded by Ford as a long-term owner that will invest in the units and Ford’s UK labour unions backed it over its rivals in November on the grounds the workforce's best interests would be served by a partner with an established presence and background in manufacturing.

The three final bidders have spent recent months locked in talks with Ford, the unions and the British government, which is keen to safeguard the manufacturing jobs Jaguar and Land Rover sustain in the UK, according to the sources familiar with the matter pointed out.