Tata Motors will acquire only the vehicle manufacturing plant, not their Engine Plant, ford currently uses it for export markets.
Tata Motors will sign the Memorandum Of Understanding with Ford and Gujarat Government for the Sanand Car plant this week. Gujarat Government has also allowed Tata Motors for this deal.
The Tata Group has met with the Gujarat and Tamil Nadu governments on a possible acquisition of a Ford India plant. This was after Ford announced its withdrawal from India last year.
The Sanand factory is mainly a workshop and has about 2,500 full-time workers, including nearly 900 union workers.
After the passenger car was abolished, Sanand workers were engaged in the manufacture of spare parts for Ford cars other than the engine.
Ford India declared its withdrawal from the country in September 2021. Despite heavy investment in the country, the company has accumulated over $ 2 billion in operating losses over the last decade.
However, the company set an internal production deadline for spare parts in automobile factories in March 2022.
For the past year, Ford has been discussing contract manufacturing or sales for both factories with companies such as Ola and Mahindra. That didn’t work and led to the announcement of the closure.
An official was quoted as saying by TOI, “The companies are still in talks to work out the nitty-gritty of the deal size, labour issues, financials, and duties and benefits involved in the takeover. Once the two firms agree, a definitive agreement may be inked.”
The official added, “A formal ceremony for the MoU (memorandum of understanding) signing is being planned for May 30. The state has agreed to pass on all benefits offered to Ford to Tata Motors for the remaining period of the concession agreement.”
Tata Group is currently focusing on all those things which can be manufactured in India only which will give a great benefit to the Nation. From their Ev charging network, making of semi conductors to the recycling of batteries, Tata group is doing all the possible efforts to make India “Atmanirbhar”.
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(with inputs from TOI)
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