Jag and Land Rover Deal: Tata Who?

Ford is close to finalizing a deal to sell majority interest in Jaguar and Land Rover to Tata Motors. Uh-huh, from India.

Tata is the automotive arm of the family-run Tata Group industrial conglomerate.

This is no small time startup, the parent company owns everything from five-star hotels to steel mills. The automotive subsidiary produces tractor-trailers, full-size SUVs, and the world's cheapest car.

Try the world's only $2,500 new car.

Tata, Mahindra & Mahindra (also an Indian car maker), and US private equity firm One Equity Partners, are the only three bidders are left in the JLR fire-sale auction.

Interestingly, former Ford CEO Jacques Nasser, who directed the Ford expansion into "premium" brands, paying $3.3 billion for Land Rover, is a senior adviser at One Equity Partners.

The bid for both brands is reported at just over $2 billion.

Tata has the support of the English unions, is the highest bidder, and is seen as a long-term player with the deep pockets to rebuild Jag/Rover.

Politicians in the UK are on board, trying to safeguard 15,000 British jobs.

The deal is likely to include a synergistic strategic alliance between Ford and Tata. The JLR brands will give Tata a beachhead in the Euro/US markets, and Ford a channel to fast growing India's even faster growing auto sector.

The Tata family is known for its charity commitments and careful management style. They rarely try to impose their imprint on an acquired enterprise, preferring to keep most existing management.

Would you buy a snob appeal Jaguar from a company in India?

Well, the brands will still be built in the UK, and how 'bout that slick new sport sedan, the Jaguar XF?

Tata faces a big challenge trying to achieve what Ford could not. XF is a start, but rebuilding the image will be difficult.

Gas guzzling Jaguars and Land Rovers could also be pressured by new carbon-dioxide emissions rules anticipated in Europe.