Ford 'to sell Jaguar and Land Rover'

Ford has given the strongest indication yet that it is preparing to sell luxury brands Land Rover and Jaguar.

The American car giant told MPs that a deal was in the making, but it is some way off.

Over 19,000 people are employed by Jaguar and Ford in the UK.

Ford is trying to cut its costs after posting losses of £700m last year and £242m in the first three months of 2007.

It sold Aston Martin to a consortium led by David Richards of Prodrive in March this year for £479m. Rumours suggest it could make £1.5bn by selling Land Rover and Jaguar.

Dave Osborne, national secretary of the T&G Union that represents UK workers, said: “We find it difficult to understand why Ford would want to sell a successful, growing and environmentally improving brand like Jaguar which is a significant player in the luxury market and one that Ford has invested in heavily.”