Tata Motors is all set to take over Ford India’s passenger car manufacturing plant in Sanand, near Ahmedabad. The automakers recently got the approval from the Gujrat cabinet for the submitted proposal and the two can take the deal forward officially. A no-objection certificate has already been issued by the cabinet.
With this, Tata Motors also gets the leverage and incentives which were extended to Ford at the time of the plant launch. Sources suggest that the carmakers would be soon signing an MoU in the presence of Gujarat chief minister Bhupendra Patel.
Lately, in April, Ford’s passenger manufacturing plant in Sanand has stooped its manufacturing operations. The American carmaker has already announced a get off from its Indian operations.
Back in 2018, an HPC (high-powered committee) was formed to address and resolve the execution issues of large projects. This is how the automobile giants proposed a takeover of Tata Motors over Ford’s plant.
In regards to the same, an official said, “The Gujarat cabinet’s approval is only a green signal. The companies are still in talks to work out the nitty-gritties with regard to the deal size, labor issues, financials, and duties and benefits involved in the takeover. Once the two firms agree, a definitive agreement may be inked between the two automakers.”
Talks about Tata Motors’ plans for manufacturing electric vehicles at the new plant are still in pipeline and fresh investments can soon come into picture.
