Tata Motors signs MoU to acquire Ford’s Sanand plant
Ford’s Sanand factory is located next to Tata Motors’ existing facility
Tata Passenger Electric Mobility Limited (TPEML) and Ford India have signed a Memorandum of Understanding (MoU) with the Government of Gujarat for the potential acquisition of Ford’s Sanand manufacturing plant, including the land, buildings, vehicle manufacturing plant, machinery and equipment as well as the transfer of all eligible employees of the vehicle manufacturing operations unit.
Ford’s Sanand facility also includes a powertrain manufacturing unit, which will be operated by Ford by leasing back the land and building from TPEML.
Tata also plans to invest in new machinery and equipment. With the proposed investments, it would establish an installed capacity of 3,00,000 units per annum, which would be scalable to more than 4,00,000 units.
Ford’s Sanand factory is located next to Tata Motors’ existing facility, which should help in a smooth transition.
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