Joachim Milberg, chairman of the Board of Management of
BMW AG, and Jac Nasser, Ford Motor Company president and CEO, reached the agreement after
approximately two months of due diligence following the companies' memorandum of
understanding (MOU) signed on March 16, 2000.
is truly one of the world's great brands. We are looking forward to bringing the
outstanding talent and product of Land Rover into the Ford Motor Company family,"
agreement, following the sale of Rover, is the second decisive step in implementing the
strategic reorientation of BMW Group," said Milberg.
"And it ensures that Land Rover, a brand rich in tradition, will be
continued under the leadership of Ford Motor Company."
Under terms of the
transaction, Ford will pay 3 billion euros (US$2.7 billion) to buy the Land Rover
business, which includes its full line-up of four-wheel-drive vehicles - Range Rover,
Discovery, Freelander and Defender. As agreed upon in the MOU, two-thirds of the purchase
price will be paid immediately with the remaining third to be paid in 2005.
Ford Motor Company
is acquiring the rights to the Land Rover brand, the Land Rover plant in Solihull
(Birmingham) as well as the Gaydon Research and Development Centre, the Land Rover dealer
network, the British Motor Industry Heritage Centre (Gaydon), and a total workforce of
approximately 13,000 employees.
In addition, BMW
has agreed to complete the development of the successor to the Range Rover on behalf of
Ford Motor Company and will act as a supplier for certain components and deliveries.
The transaction is
expected to be completed June 30, subject to regulatory approvals.