Tata Motors To Acquire Ford India Plant In GujaratAugust 10, 2022
Tata Motors To Acquire Ford India Plant In Gujarat – Kuri007
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The deal includes the transfer of all eligible employees, the auto giant said in a statement.
By: Shubham Ghosh
Auto giant Tata Motors has said its subsidiary will acquire Ford India’s Gujarat manufacturing facility for Rs 7.25 billion (£75 million).
Tata Passenger Electric Mobility Ltd (TPEML) and Ford India Pvt Ltd (FIPL) have signed a Unit Transfer Agreement (UTA) to set up a plant in Sanand.
Tata Motors will acquire all the land and buildings, the car manufacturing plant and machinery and equipment, the Mumbai-based company that owns Jaguar Land Rover of the UK, the statement said.
The agreement also includes the transfer of all eligible employees, it added.
Ford India will continue to operate its powertrain manufacturing facility by leasing the relevant land and buildings from TPEML on agreed terms, Tata Motors said.
Tata Motors said that with its production capacity nearing capacity, the acquisition was timely and “successful” for all stakeholders.
The Sanand plant has a production capacity of 300,000 units per year and can be scaled to 420,000 units per year.
TPEML will invest to refurbish the plant to suit Tata Motors’ existing and future vehicle platforms, the carmaker said.
The facility is adjacent to Tata Motors Passenger Vehicles Limited’s existing manufacturing facility at Sanand.
“The agreement with FIPL signed today benefits all stakeholders and reflects Tata Motors’ strong desire to further strengthen its market position in the passenger vehicle segment and continue to build on its leadership position in the electric vehicle segment,” Tata Motors Passenger Vehicles. managing director Shailesh Chandra commented.
Ford Motor Company Transformation chief, Steve Armstrong, said the announcement marks an important step forward in the company’s business restructuring in India.
In September last year, the company announced that it will stop the production of cars in its two factories in the country as part of the car restructuring plan.
Both TPEML and FIPL will work together over the next few months to satisfy all the pre-conditions and get the necessary regulatory approvals to close the deal, Tata Motors said.
American and European car companies have not succeeded in the Indian car market, which is dominated by Tata Motors and East Asian companies such as Suzuki and Toyota, Hyundai and Kia.
Before Ford pulled out of India, General Motors closed its sales in the south Asian country.