Unions could force Ford to retain stake in Jaguar & LR

Ford wants to have no part of Jaguar or Land Rover following its eventual sale of the Premier Auto Group labels. The Blue Oval made an announcement stating so as far back as September last year, but cutting off its ties with either Jaguar or Land Rover isn’t as straightforward as selling off some shares.

Numerous Jaguar and Land Rover models share components with Ford vehicles, such as powertrains, interior pieces and at one point even whole vehicle platforms, but according to a new report this isn’t the only hurdle the carmakers will have to overcome if they want a clean break. Thomson Financial is reporting that trade unions are demanding Ford retain a stake to ensure continuity of production at the three Jaguar and Land Rover plants in the UK. These three plants alone employ more than 16,500 people.

Officials from Ford and the unions will be visiting new (unofficial) owner Tata in India next month to gather inside knowledge of the Indian carmaker’s inner workings. A major stumbling block the unions face, however, is that if Ford was to retain a stake in the two carmakers then Jaguar and Land Rover would have to be spun off into a new entity that Tata would become a majority shareholder, something we’re sure Tata officials aren’t looking forward to.