According to Ford, Jaguar and Land Rover combined .were profitable in 2007 while Volvo was unprofitable .
The divestiture will enable management to focus on reducing fixed cost and R&D.
While the multiple being paid is notably low it should not be seen indicative of other businesses.
Ford is following its strategy of focusing on the core Ford brand, reducing product complexity and platforms, and increasing product development efficiency.
For Tata Motors it is a clear sign of Tata’s intention to dive headlong into the international auto-market waters.
Ford is said to continue its support for the Jaguar and Land Rover platforms for an unspecified period.