Tata Motors signs MoU with Gujarat govt to take over Ford’s Sanand plant

Tata Motors has inked a pact with the Gujarat government to take over Ford India’s vehicle manufacturing plant in Sanand. The state has reportedly given a no-objection certificate for the purpose.




The potential acquisition will include land & buildings, vehicle manufacturing plant, machinery and equipment and transfer of all eligible employees of FIPL Sanand’s vehicle manufacturing operations, Mint reported citing company’s regulatory filing.

“Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited (FIPL), have today signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility,” the Tata Group firm informed in an exchange filing. TPEML would invest into new machinery and equipment which is necessary to commission and make the unit ready to produce its vehicles. The benefits extended to Ford India for the Sanand plant would be enjoyed by Tata Motors as well. The company has a plant in Chennai as well. The Sanand plant has around 2,500 permanent workers, including nearly 900 union workers, mostly on the shop floor. After passenger cars were discontinued, workers at Sanand were engaged in manufacturing spare parts for Ford cars, apart from engines.

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In September last year, Ford India had announced its exit from the country saying that it will quit local manufacturing and only sell high-end models in India through the import route. Despite investing significantly in the country, the company had accumulated more than $2 billion of operating losses over the past 10 years.