Tata Motors Ltd., India's largest passenger automobile and commercial vehicle manufacturing company, made public the fact that it will begin talks with Ford Motor Co. about purchasing its U.K.-based Jaguar and Land Rover luxury auto units. The Mumbai-based car manufacturer also said the deal will most likely be reached in the coming weeks.

The company’s statement said that Tata has already held what it labeled as “positive discussions'' with Ford. The information released in the statement was confirmed by John Gardiner, a spokesman for Dearborn, Michigan-based Ford. However, Gardiner didn’t say whether other potential bidders have dropped out.

If the agreement is reached and the deal is carried out, Tata will earn a major presence overseas and access to new technology as well.

The two iconic car makers are in different financial states at the moment. Land Rover, the British producer of all-terrain cars since 1948, had a profitable year and, after recently upgrading its Discovery and Freelander models to target the luxury market and complement the top-end Range Rover, it looks like the good business will continue there.

On the other hand, Jaguar has lost money under Ford and a sale of the unit will give the American company the chance to concentrate on restore its North American operations after a record $12.6 billion loss in 2006.

"Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar/Land Rover business," said Lewis Booth, Ford executive vice president with responsibility for Europe.

Ford, the World’s third-largest auto maker, may get $2 billion from the deal, estimated Stephen Pope, chief global markets strategist at Cantor Fitzgerald in London, according to Bloomberg.