Ford had announced its exit from India at the end of last year due to heavy losses.
Country’s popular Tata Motors, in association with Ford Motor Company, has made an offer for transfer of ownership of the latter’s production facility near Ahmedabad. Ford had announced its exit from India at the end of last year due to heavy losses. In such a situation, the manufacturing unit of this company in Sanand will now reportedly be acquired by Tata. A high-power committee set up by the Gujarat government is expected to clear legal proceedings early next week for Tata to take over the Sanand plant if the offer is approved.
According to the information, since the announcement of the sudden departure, Tata Motors is in talks with Ford for the acquisition. For which a high-power committee was constituted in April 2018.
The American auto major has invested around Rs 4,500 crore in Sanand to set up a vehicle assembly plant with a setup capacity of 2.4 lakh vehicles and 2.7 lakh powertrains every year. Claimed Operation Loss of USD. Tata’s current production facility in Sanand manufactures the entry-level Tiago hatchback, Tigor compact sedan and Tigor EV electrified sedan. Upon setting up its plant, Tata approached a number of companies including Volkswagen Group, MG Motor and Ola for contract manufacturing before exiting the local operation for Rs 4,500 crore with a capacity of about 1.5 lakh passenger cars per year. This agreement could not be reached.
At the same time, Tata had recently announced a huge investment of Rs 15,000 crore. It plans to launch ten electric vehicles in the next five years. The company has also set up an EV-only subsidiary, Tata Passenger Electric Mobility Limited (TPEML), for its EV commitment.