Ford reaches agreement to sell Jaguar, Land Rover brands to Tata Motors

DEARBORN, Mich., March 26, 2008 – Ford Motor Company [NYSE: F] announced today that it has entered into a definitive agreement to sell its Jaguar Land Rover operations to Tata Motors.

The transaction is the culmination of Ford’s decision last August to explore strategic options for the Jaguar Land Rover business, as the company accelerates its focus on its core Ford brand and “One Ford” global transformation.

The sale is expected to close by the end of the next quarter and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon closing will be approximately US $2.3 billion. At closing, Ford will then contribute up to approximately US $600 million to the Jaguar Land Rover 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.”

“This is a good agreement. It provides the Jaguar Land Rover management team and employees with the assurances needed to maintain their focus on delivering the best results for the business,” said Lewis Booth, executive vice president, Ford Motor Company, who has responsibility for Ford of Europe, Volvo and Jaguar Land Rover. “I am confident that, under its new owner, Jaguar Land Rover will continue to build upon the significant improvements and product successes it has achieved in recent years.”

As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services.

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Tata Motors today announced that it has entered into a definitive agreement with the Ford Motor Company for the purchase of Jaguar Land Rover, comprising brands, plants and Intellectual Property Rights.

The transfer of ownership to Tata Motors is expected to close by the end of the next quarter, subject to applicable regulatory approvals.

The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon closing will be approximately US $2.3 billion. At closing, Ford will then contribute up to approximately US $600 million to the Jaguar Land Rover pension plans.

Commenting on the agreement, Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, said, “We are very pleased at the prospect of Jaguar and Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business.”

Mr. Alan Mulally, President and CEO of the Ford Motor Company, said, “Jaguar and Land Rover are terrific brands. 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.”

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Mazda2, Three-door hatchback

HIROSHIMA, Japan — The Mazda2 is the 2008 World Car of the Year (WCOTY). From an initial entry list of thirty-nine (39) new vehicles from all over the world, the overall 2008 WCOTY title was announced today (Thursday, March 20, 2008) at the New York International Auto Show. The Mazda2 (known as the Mazda Demio in Japan) edged out the Ford Mondeo and Mercedes-Benz C-Class to take the overall award.

Based on the recommendations of a design panel consisting of four highly respected world design experts, the Mazda2 was also voted by the jurors onto the short-list of top three design finalists, together with the Audi R8 and Volvo C30.

The WCOTY awards were officially launched in January 2004 and are initiated by, organized by, and conducted by automotive journalists from all over the world. A jury of 47 international automotive journalists selected the overall winner by secret ballot, based on their experience with each candidate as part of their professional work. The jury members constitute a balance of representation from Asia, Europe, North America, South America, as well as other parts of the world.

Since it first went on sale in 2003 in Europe, the Mazda2 compact has enjoyed widespread popularity due to its convenient size and superb storage and functionality. The second generation all-new Mazda2 commenced sales in Japan in July 2007, and soon drew attention thanks to its fun-to-drive, Zoom-Zoom driving dynamics, and the emphasis Mazda placed on the new generation’s desire for environmental and safety attributes and great design. The all-new Mazda2 reflects these emerging modern attitudes with stylish exterior design complemented by low running costs and excellent fuel economy, achieved by reducing the vehicle’s weight by approximately 100 kilograms.

“We are delighted that the 2008 World Car of the Year jury has chosen the all-new Mazda2 as their World Car of the Year,” said Dan Morris, Mazda’s senior managing executive officer in charge of Marketing, Sales and Customer Service. “This is wonderful recognition which Mazda2 car owners and Mazda employees alike can celebrate worldwide.

“The all-new Mazda2 is exceeding our highest expectations, demonstrating it can compete and win against the best compact cars in any market in the world and is earning glowing praise at home and globally, having also won a number of Car of the Year awards around the globe, including Austria, Belgium, Denmark, Greece, New Zealand, and the RJC Car of the Year award in Japan.”

Ford Hydrogen Powered Bus

DETROIT, Mich. March 17, 2008 – Ford Motor Company and U.S. Congressman John Dingell and the Wayne County Airport Authority today announced the delivery of two hydrogen-fueled Ford E-450 shuttle buses to be used for transporting airline passengers between terminals at Detroit Metropolitan Airport (DTW).

Today’s delivery is the result of a partnership involving Ford, the Wayne County Airport Authority and the Southeast Michigan Council of Governments (SEMCOG). The project is being funded with a Department of Energy grant that was supported by Congressman Dingell, who represents Michigan’s 15th District.

“These buses represent part of Ford Motor Company’s strategy to deliver transportation solutions that emit less CO2 and reduce our dependence on oil,” said Ziad Ojakli, Ford group vice president, Government and Community Relations. “We are pleased to partner with the State of Michigan and Wayne County to place these buses into service so that locals and visitors alike will be able to experience this unique form of clean transportation. The buses also serve as a visible demonstration of Michigan’s commitment to innovation and sustainable mobility.”

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TOKYO, Japan, March 11, 2008 – Yachiyo Industry Co., Ltd., a Honda’s consolidated subsidiary in Japan, announced plans to build a new auto plant which produces both engines and bodies on land adjacent to its Yokkaichi Factory in the effort to further strengthen its mini-vehicle business.

Equipped with advanced technologies, the new plant will be a state-of-the-art, highly flexible, and environmentally-responsible plant. It will start with engine assembly operations in the first half of 2009, followed by establishment of the automobile production in the latter half of 2010.

With the new plant, Yachiyo will establish a highly efficient and high quality production system by separating production between the existing and the new plants based on product characteristics. (The new plant will produce the front-engined models, Life and Zest, with the existing plant concentrating on the midship-engined models, Acty and Vamos.)

The combined annual production capacity of the two plants will be approximately 240,000 units, which is almost the same as the current capacity. Total investment related to the establishment of the new plant is expected to be approximately 50 billion yen.

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AUBURN HILLS, Mich. — Volkswagen of America, Inc. announced today that its Electronic Stabilization Program (ESP) will be standard equipment on every 2009 model year Volkswagen vehicle – passenger cars, sport utility vehicles, and minivans. By offering ESP as a standard feature, Volkswagen is the first non-luxury manufacturer to include an electronic stabilization system at no additional cost on every vehicle it sells – well ahead of the National Highway Traffic Safety Administration’s (NHTSA) deadline requiring all 2012 model year vehicles to have such systems.

“Volkswagen has long been a leader in making high technology accessible to all,” said Volkswagen of America, Inc. CEO Stefan Jacoby. “ESP has been available on all Volkswagens in the US for several years. Now, making ESP standard across our entire line reinforces Volkswagen’s commitment to safety for all our customers, and further shows why we are a market leader in offering some of the safest vehicles on the road today.”

NHTSA predicts nearly 10,000 lives could be saved each year if all automakers included electronic stabilization systems as standard equipment.
Volkswagen’s ESP system uses a number of electronic vehicle controls to make a safe car even safer and helps the driver maintain control of the vehicle during dynamic driving conditions. The ESP system works in conjunction with the Anti-lock Braking System (ABS), Anti-slip Regulation (ASR), components of the Electronic Differential Lock (EDL) system, and additional sensors.

Founded in 1955, Volkswagen of America, Inc. is headquartered in Auburn Hills, Michigan. It is a subsidiary of Volkswagen AG, headquartered in Wolfsburg, Germany. Volkswagen is one of the world’s largest producers of passenger cars and Europe’s largest automaker. Volkswagen sells the Rabbit, New Beetle, New Beetle convertible, GTI, Jetta, GLI, Passat, Passat wagon, Eos, and Touareg through approximately 600 independent U.S. dealers. Visit Volkswagen of America online at vw.com.

2009 Lincoln MKS

Ford wants luxury vehicle buyers to think of Lincoln when they think of exquisite design, which explains why the brand is exhibiting at the annual Architectural Digest Home Design Show in New York this weekend.

“We need to be selective with our experiential marketing budget and we thought the Architectural Digest Home Design Show was a good event for Lincoln,” said Thomais Zaremba, Lincoln Mercury marketing communication manager.

“The magazine itself comes up in research repeatedly as a good venue for Lincoln’s print advertising. The designers at the show, along with being master craftspeople, are also very well connected in the design field and tend to let their colleagues know about new and interesting designs. And the consumers attending the show are both affluent and seriously interested in design trends.”

According to Architectural Digest, the show typically attracts more than 23,000 affluent consumers who are “passionate about home design,” plus more than 3,000 trade professionals and 200 members of the media. Median household income for the magazine’s readers ranges between $90,562 for male readers and $100,403 for females.

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FoE President and CEO John Fleming helped unveil the new Fiesta.

GENEVA — Ford of Europe’s response to how mobility can be made more sustainable — today and for the near future — can be seen at the 2008 Geneva Motor Show. The company is showing a broad range of practical and affordable low-CO2 vehicle solutions.

“Sustainable mobility imposes a huge challenge for society and the automotive industry, and there is still a long journey ahead of us,” said John Fleming, Ford of Europe president and CEO. “But technically viable and affordable ways to reduce the burden on the environment without giving up basic needs such as personal mobility are available immediately from Ford of Europe.

“Our near-term focus is the new Ford ECOnetic line of ultra-low CO2 emission cars and our bio-ethanol powered Flexifuel vehicles, a technology for which we are a leader in Europe and the market pioneer. Further out, we’re working on a range of affordable new petrol engines under the Ford EcoBoost name. These use a combination of direct fuel injection and turbocharging technologies to deliver better performance, emissions and economy from smaller displacement engines.

“In addition to our dedicated lines of low-CO2 vehicles, our current standard range of vehicles is highly competitive in terms of CO2, as well. This demonstrates how serious we are in our commitment to reduce continuously the carbon footprint of our cars. And this without sacrificing any of the other trademark qualities customers expect from Ford vehicles: style through ‘kinetic design’; excellent driving dynamics and dependability throughout the lifetime of the vehicle,” Fleming added.

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Wolfsburg / Geneva - Volkswagen is putting on a spectacular parade of new models in Geneva with a host of international product debuts. Taking centre stage will be the highlight of the show, the new Scirocco – a completely re-engineered all-round sports car. Another vehicle being showcased at Lake Geneva is the Golf TDI Hybrid. This concept car runs on just 3.4 litres of diesel per 100 kilometres. The 150-PS Passat Estate TSI EcoFuel, also debuting in Geneva, represents a technology leap for automobiles run on natural gas. Other Volkswagen world premieres will be the extremely fuel-efficient Sharan BlueMotion (6.0 litres per 100 km) and the four-wheel-drive Golf Estate 4Motion. The Passat CC will also be on display for the first time ever in Europe.

It’s back: 34 years after the first Scirocco was unveiled to a waiting world at the Geneva Motor Show, Volkswagen is presenting a new Scirocco for a new era at the same venue. Now as then, the coupé is inspired by the fascinating idea of creating a sports car for every day of the year at truly affordable prices. And that is the essence of the Scirocco: the successful marriage top technology and low running costs, dynamic performance and high comfort, a surprisingly spacious interior and an uncompromising sporty design.

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