Preserving links means Ford/Tata deal needs time

FRANKFURT (Reuters) - Ford Motor Co. has yet to resolve how and in what form it will retain technological ties to Jaguar and Land Rover under likely new owner Tata Motor, meaning a deal may not be reached as early as some in the market expect.

Two sources familiar with the matter told Reuters on Thursday that while significant progress has been made enabling Ford to announce a disposal in March, it would likely come later than next week since not all issues had been definitively solved.

"Ford is not going to sell the business and just walk away," one person said, explaining there was no rush to set a date and progress is more gradual than investors might otherwise believe.

Any deal would have to take into account the existing links between Jaguar and Land Rover and its current parent, which supplies engines as well as shares both platforms and technologies with its two UK luxury brands.

While Ford did not intend to keep a minority stake in either Jaguar or Land Rover, the U.S. carmaker did look to retain its ties to the two units over the mid to long-term, since for example powertrains are typically developed to last for many more years than the usual model lifecycle for cars using them.

"Engines have a long life," the person said.

The completion of the disposal to Tata Motors is still expected by the end of the second quarter.