BMW Group, Ford Motor Company Sign Definitive Agreement for Land Rover

24 May 2000

    MUNICH, Germany and DEARBORN, Mich., May 24 BMW Group and
Ford Motor Company today announced that they have signed a definitive
agreement for Ford to buy the Land Rover business from BMW.
    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.
    "Land Rover 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," said Nasser.
    "This 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.