Saturday, November 26, 2022
HomeBusinessTata Motors buys Ford's Sanand plant, deal completed for Rs 725.7 crore

Tata Motors buys Ford’s Sanand plant, deal completed for Rs 725.7 crore

Under the agreement, Tata Motors will be given ownership of the entire land of the plant, the house and vehicle manufacturing plant as well as the machinery and equipment located therein. TPEML will also hire all eligible employees at the Sanand plant who will work under the leadership of Tata. However, Ford will continue to operate its powertrain manufacturing facility by leasing the powertrain manufacturing plant land and buildings from TPEML on mutually agreed terms.

Shailesh Chandra, Managing Director, TPEML, said, “Their agreement with FIPL today is beneficial to all stakeholders and helps Tata Motors to further strengthen its market position in the passenger vehicle segment and continue its leadership position in the electric vehicle segment. Shows strong aspiration.” He said that it will accelerate the growth and development of the Indian auto industry by taking a progressive step towards building a future ready Atmanirbhar India.

Tata Motors buys Ford's Sanand plant, deal completed for Rs 725.7 crore

The Tata Motors subsidiary has agreed to employ qualified employees of the Ford plant if Ford decides to wind down these operations at a later stage, the statement said.

Tata Motors buys Ford's Sanand plant, deal completed for Rs 725.7 crore

Tata Motors has announced that with the acquisition of the new plant, the company will be able to manufacture an additional 3,00,000 vehicles per year and this can be increased to 4,20,000 units per annum, if required.

Tata Motors buys Ford's Sanand plant, deal completed for Rs 725.7 crore

Steve Armstrong, transformation officer for Ford Motor Company, said, “This agreement is an important step in Ford’s ongoing business restructuring in India, which is part of our plan for strategic transformation. With the transfer, it also highlights our best effort in taking care of those affected by the restructuring.”

Tata Motors buys Ford's Sanand plant, deal completed for Rs 725.7 crore

Let us tell you that Ford has stopped the production of its cars in India. The company had decided to wind up business in India due to continuous losses for the past decade. Ford has two plants in India which are in Sanand and Chennai. The company used to manufacture small cars like Figo, Freestyle, Aspire in Sanand while the EcoSport and Endeavor were manufactured at its Chennai plant.

Tata Motors buys Ford's Sanand plant, deal completed for Rs 725.7 crore

Despite many difficulties, the company was producing cars and engines for export. Now this journey has come to an end. The company was facing heavy losses due to the continuous declining sales of the cars and finally the company decided to leave the Indian market. Till now companies like Chevrolet, Datsun, Harley Davidson, Fiat, General Motors have also left India.

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