Tata Motors has received approval to acquire American company Ford Plant, an automaker based in Sanand, Gujarat. This week the Gujarat cabinet approved the proposal to go ahead with the deal, which was moved by both the companies. According to experts, American car maker Ford had said to leave India last year due to many factors like market, product design, more investment.
In Sanand, the company had stopped passenger manufacturing till April this year. At the same time, this month Ford Company has also given up its EV manufacturing in India and is preparing to end business with India. According to TOI sources, the cabinet has issued a no-objection certificate on the proposal of the companies. The MoU between Tata Motors and Ford will be signed in front of CM Bhupendra Patel on Monday.
Consent can be made on 30
An official said that this approval of the Gujarat government is only a green signal to the cabinet. Companies are still negotiating the specifics of its size, labor, financials and benefits involved in the acquisition. Once an agreement is reached between these two companies, the agreement can be signed. He told that on May 30, a plan has been made regarding the agreement. Representatives of both the companies will be present in it.
Company will not make EV in India
According to an official, Tata Motors has also agreed to give concession to Tata Motors during the remaining period of all benefits given by the state government to Ford Company. Earlier this month, Ford also dropped its plans to make EVs in India for global markets.
can withdraw the application
It is worth noting that Ford India is among 20 different companies that were selected under the Production Linked Incentive Scheme of the Government of India announced in February 2022. But the company can now withdraw its application as it will no longer invest in the country.