16.2 C
London
Sunday, September 25, 2022

Tata Motors to acquire Ford’s Gujarat plant for ₹726 crore

Must read

Pink Floyd founder cancels concerts in Poland after war remarks

WARSAW, Poland — Pink Floyd co-founder Roger Waters has canceled planned concerts in Poland amid outrage over his stance on Russia's war against Ukraine,...

Smaller Dreamforce Still Emerges in First Live Meeting in Three Years • londonbusinessblog.com

Marc Benioff and company sure knows how to put on a show. In fact, Benioff has been putting on Dreamforce customer glasses since...

Apple Pay Later Reportedly Suffers ‘Technical and Technical’ Issues

If you use crash detection on the iPhone 14, invest in a really good phone holder.Motorcycle owner Douglas Sonders has a cautionary tale in...

How do you manage your money when you move abroad?

People move abroad for various reasons. Maybe you have found a dream job at an international company or do you want to? studying...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

  • The acquisition of the Ford India plant is being carried out by Tata Passenger Electric Mobility Limited (TPEML).
  • The unit is adjacent to the existing production facility of Tata Motors Passenger Vehicles Limited in Sanand.
  • Tata Motors will also hire all eligible employees of Ford India’s vehicle manufacturing operations following this deal.

Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors, announced Monday the acquisition of Ford India’s factory in Gujarat city, Sanand, for 725.7 crore, excluding taxes.

The companies have already signed a Unit Transfer Agreement (UTA) to complete this deal, which also includes the transfer of all eligible employees from Ford India’s vehicle manufacturing operations at its Sanand plant. The unit is adjacent to Tata Motors Passenger Vehicles Limited’s existing manufacturing facility in Sanand, which should help ensure a smooth transition, the companies said in a statement.

“The agreement with FIPL [Ford India Private Limited] signed is beneficial to all stakeholders and reflects Tata Motors’ strong commitment to further strengthen its market position in the passenger vehicle segment and build on its leadership position in the electric vehicle segment,” said Shailesh Chandra, MD at Tata Motors Passenger Vehicles and TPEML.

Tata Motors would also take over the entire land and buildings, along with the plant’s machinery and equipment. Ford India will continue to operate its Powertrain Manufacturing Facility by leasing back the plant’s land and buildings from Tata Passenger Electric Mobility on mutually agreed terms.

“Today’s announcement marks a significant step forward in Ford’s ongoing corporate restructuring in India, which is part of our Ford+ strategic transformation plan. With the transfer of employment for eligible automotive manufacturing workers included in the agreement, this milestone also underscores our best efforts to care for those affected by the restructuring,” said Steve Armstrong, transformation officer at Ford Motor Company.

The Government of Gujarat, as well as the two parties involved, have already prepared a Tripartite Memorandum of Understanding (MoU) on May 30, 2022 to support all relevant approvals for the transaction. Completion of the transaction is subject to receipt of relevant regulatory approvals and compliance with customary closing conditions, the statement said.

ALSO SEE

Markets to keep a close eye on US and India inflation data

Reliance Industries is hosting its 45th AGM this month – everything you need to know

Rain rage: Farmers in TN’s Tiruchi stare at heavy losses as crops flood

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Pink Floyd founder cancels concerts in Poland after war remarks

WARSAW, Poland — Pink Floyd co-founder Roger Waters has canceled planned concerts in Poland amid outrage over his stance on Russia's war against Ukraine,...

Smaller Dreamforce Still Emerges in First Live Meeting in Three Years • londonbusinessblog.com

Marc Benioff and company sure knows how to put on a show. In fact, Benioff has been putting on Dreamforce customer glasses since...

Apple Pay Later Reportedly Suffers ‘Technical and Technical’ Issues

If you use crash detection on the iPhone 14, invest in a really good phone holder.Motorcycle owner Douglas Sonders has a cautionary tale in...

How do you manage your money when you move abroad?

People move abroad for various reasons. Maybe you have found a dream job at an international company or do you want to? studying...

Everything you need to know to get started

Want to improve your social media presence and grow your following quickly and efficiently? Going live on TikTok, like most social media platforms,...