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Tata Completes Takeover Of Ford's Sanand Plant - The End Of A Journey
Tata Passenger Electric Mobility Limited, the EV subsidiary of Tata Motors has completed the takeover of Ford's production plant in Sanad, Gujarat.
Tata Passenger Electric Mobility Limited (TPEML), the EV subsidiary of Tata Motors has completed the takeover of Ford's production plant in Sanad, Gujarat.
TEPML had signed a unit transfer agreement with Ford on the 7th of August, 2022 which saw the Tata Motors subsidiary agree to purchase the American firm's Indian production facility in Sanand, Gujarat including the entire land and buildings along with machinery and equipment and the transfer of all eligible employees for a total sum of Rs 725.7 crore (exclusive of taxes).
In a statement released by the company, Tata Motors stated, "Tata Motors Passenger & Electric Vehicles business has delivered market beating growth over the last few years and has strong plans to sustain this momentum, with its robust pipeline of future ready "New Forever" products and proactive investments in electric vehicles. With existing capacities near saturation, this acquisition will unlock an additional state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum."
Over the past few years, Tata Motors has become the go-to name for Indian customers looking for an electric vehicle. The carmaker's acquisition of Ford's former production plant will help Tata Motors meet the ever-increasing demand for its electric vehicles. The former Ford plant will also help Tata Motors as it pushes forward to an electric future.
This also marks the end of Ford's journey in India though the American carmaker has ensured that its workers will still be able to return to work at the Sanand facilities albeit as employees of Tata Motors. As part of the agreement signed by Tata and Ford, Ford India employees have been offered employment on similar terms, conditions and service benefits similar to the ones they had under Ford. Employees of Ford India who accept the employment offer will become employees of Tata Passenger Electric Mobility Limited on the 10th of January when the transaction between Tata and Ford is officially completed.
Thoughts About Tata's Acquisition of Ford's Sanand Plant
The deal between Tata Motors, the nation's largest electric car manufacturer, and Ford sees the American carmaker's production facility in Sanand, Gujarat come under the ownership of Tata's EV subsidiary.
Tata taking over Ford's plant in Gujarat also marks the end of the American carmaker's journey in India which saw us being graced by some of the best-driving hatchbacks and sedans from its international portfolio including the iconic Mustang muscle car. Ford was always known for its performance-focused cars and we are quite sad to see them leave.
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