Tata Motors EV model buys Ford India’s Gujarat plant for Rs 726 crore

Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors and Ford India (FIPL) have signed an settlement for the acquisition of a Ford manufacturing plant located at Sanand, Gujarat. The deal will embrace the (i) total land & buildings; (ii) Vehicle Manufacturing Plant together with equipment and tools located therein; and (iii) switch of all eligible staff of Ford India’s manufacturing operations at Sanand. The deal has been finalized at Rs 725.7 crore. Also Read – GT Force launches two new electrical scooters at beginning worth of Rs 49,996: Check particulars

Ford India will proceed to function the Powertrain Manufacturing Facility by leasing again the land and buildings of the Powertrain Manufacturing Plant from Tata Motors on agreed phrases. Tata has agreed to supply employment to the eligible staff of Ford’s Powertrain Manufacturing Plant if Ford stops manufacturing utterly. Also Read – EV battery pack shipments to achieve 30 million in 5 years: Report

Tata Motors, in a press release, mentioned that the closure of the transaction shall be topic to the receipt of related approvals from the federal government authorities and success of circumstances. Both corporations and the federal government of Gujarat had already signed an MoU in May this yr to get all of the approvals. Also Read – EV charging amenities are significantly decrease than numbers of EVs in India: Report

Tata Motors’ new facility shall be adjoining to its current manufacturing unit in Sanand. This will assist the model make the transition with relative ease. Additionally, the corporate claims that it’ll make the required investments to reconfigure the plant to adapt to Tata Motors’ current and future automobile platforms.

Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, mentioned, “The agreement with FIPL signed today is beneficial to all stakeholders and reflects Tata Motors strong aspiration to further strengthen its market position in the Passenger Vehicles segment and to continue to build on its leadership position in the Electric Vehicle segment. It will accelerate the growth and development of the Indian auto industry by taking a progressive step forward towards building a future ready Atmanirbhar Bharat”.

“Today’s announcement marks an important step forward in Ford’s ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring,” mentioned Steve Armstrong, Transformation Officer of Ford Motor Company.

Source link

Comments are closed.