Ford Motor Company will contribute up to US $600 million to the Jaguar Land Rover pension plans when it sells the brands to Tata Motors.
The contribution will be made once it has closed the deal, which is expected to happen by the end of the new quarter and is subject to customary closing conditions, including regulatory approval.†
Jaguar Land Rover's employees, trade unions and the UK government have been kept informed of developments as the sale process progressed and have indicated that they are in support of the sale. No changes to Jaguar Land Rover employees' terms of employment are anticipated.
Lewis Booth, executive vice president at Ford Motor Company, said: "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."
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