English
Gandhinagar: Tata Motors on Sunday signed an agreement to buy Ford Motor’s manufacturing plant in Gujarat for Rs 7.26 crore rupees ($91.5 million). The Unit Transfer Agreement (UTA) signed between the Indian automaker’s subsidiary Tata Passenger Electric Mobility Ltd and Ford India Pvt Ltd (FIPL) covers land, assets and all eligible employees working at manufacturing plant in Gujarat’s Sanand.
“With our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders,” Tata Motors said in a statement.
It added that Ford India will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from Tata Passenger Electric Mobility on mutually agreed terms.
Ford’s manufacturing unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Limited at Sanand, which should help in a smooth transition. According to Tata Motors, the acquisition of the Sanand plant will unlock a manufacturing capacity of 300,000 units per year that could increase to 420,000.
Ford had less than 2 per cent of the Indian passenger vehicle market when it stopped production in the country last year, having struggled for more than two decades to generate profits
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
