Ford Motor Co. picked India's Tata Motors Ltd. as the top bidder for its Jaguar and Land Rover units, the Detroit automaker said Thursday.

Ford 3-month stock chart

Ford has entered into "focused negotiations at a more detailed level" with Tata, meaning it has become the preferred bidder for the storied British automakers, the company said in a statement.

"There is still a considerable amount of work to do, and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the forthcoming weeks with a view to securing an agreement that is in the best interests of all parties concerned," Lewis Booth, executive vice-president of Ford's European units, said in a statement.

Jaguar and Land Rover employees in the United Kingdom were told about the negotiations Thursday morning shortly before the company made the announcement.

No bid details

Ford spokesman Jay Ward in London would not say how much Tata had bid for the automakers, nor would he say if the other two bidders, Indian automaker Mahindra & Mahindra Ltd. and U.S. private equity firm One Equity Partners LLC, were still in the running.

Last month, people close to the negotiations told the Associated Press the potential suitors had submitted bids that ranged from $1.5 billion to $2 billion.

Tata confirmed the advanced state of negotiations Thursday.

"We are now entering a period of more focused and detailed negotiations," the Mumbai-based Tata Motors said in a statement e-mailed to the Associated Press.

"We hope both parties can reach an agreement in the forthcoming weeks, though these are complex discussions and there is still much work that needs to be done before that position is reached."

Needs cash

Cash-hungry Ford, which lost $12.6 billion US last year but earned $88 million US in the first nine months of 2007, has been shopping Jaguar and Land Rover.

Ford has mortgaged assets to continue operations and expects to burn up $12 billion to $14 billion until 2009, when it plans to return to sustained profitability.

Jaguar and Land Rover have been hit by unfavourable exchange rates and high production costs in Britain.

Ford bought Jaguar for $2.5 billion in 1989 and Land Rover for $2.7 billion in 2000, which with Aston Martin and Volvo, made up its Premier Automotive Group.

Earlier this year, Ford completed the sale of its controlling stake in Aston Martin for $931 million in cash and preferred stock. 

Ford has said it plans to keep Volvo for now, fixing its cost structure and making it a more premium brand.