Live
- First Star Outside Milky Way Captured: WOH G64 is 2,000 Times Larger Than the Sun
- Sikkim govt to constitute state Niti Ayog: CM Tamang
- CBI books Rajasthan narcotics inspector for Rs 3 lakh bribe
- Rajasthan bypolls: A tough contest between BJP and Congress
- Albania joins SEPA, paving way for EU integration
- Japanese government approves 250-billion USD economic package to ease price pain
- Six pharma companies to set up their units in Telangana
- The Unstable Events of a 17-Wicket Day in Perth: India vs Australia
- Dutch FM's Israel trip cancelled after Netanyahu's arrest warrant
- UK to increase energy price cap by 1.2 per cent
Tata Motors buys Ford's plant
Tata Motors buys Ford’s plant
Tata Motors on Monday announced the signing of a tripartite pact with Ford and the Gujarat government to acquire the American auto major's vehicle manufacturing plant at Sanand
New Delhi: Tata Motors on Monday announced the signing of a tripartite pact with Ford and the Gujarat government to acquire the American auto major's vehicle manufacturing plant at Sanand. A memorandum of understanding (MoU) was signed between Tata Passenger Electric Mobility Ltd (TPEML) -- a subsidiary of Tata Motors -- and Ford India Pvt Ltd (FIPL) with the Gujarat government for the potential acquisition of FIPL's Sanand facility, including land, buildings, vehicle manufacturing plant, machinery and equipment, Tata Motors said in a regulatory filing. The MoU signed on Monday also includes the transfer of all eligible employees of FIPL Sanand's vehicle manufacturing operations, subject to the signing of definitive agreements and receipt of relevant approvals, it added.
"Tata Motors has a strong presence in Gujarat for more than a decade with its own manufacturing facility at Sanand. This MoU further reinforces our commitment to the state by creating more employment and business opportunities," Tata Motors Passenger Vehicles Ltd and TPEML MD Shailesh Chandra said.
Rising customer preference for passenger and electric vehicles made by Tata Motors has led to a multi-fold growth for the company over the past few years, he added.
"This potential transaction will support the expansion of capacity, thus securing future growth and opportunity to further strengthen our position in the passenger and electric vehicles space," Chandra said. The MoU will be followed by the signing of the definitive transaction agreements between TPEML and FIPL over the next few weeks, the auto major stated. TPEML is planning to invest in new machinery and equipment, which is necessary to commission and make the unit ready to produce its vehicles. With the proposed investments, it would establish an installed capacity of 3 lakh units per annum, which would be scalable to more than 4 lakh units.
"We anticipate this to take a few months. This MoU for a potential acquisition of this unit is a win-win for all stakeholders and helps Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity. This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition," the Mumbai-based auto major stated.
