Tata Motors To Complete Acquisition Of Ford’s Sanand Plant On January 10, 2023

Tata Passenger Electric Mobility Limited (TPEML), the electric vehicle subsidiary of Tata Motors and Ford India has set a date for the competition of the acquisition process of the latter’s Sanand plant in Gujarat. The two companies have set the last date January 10 as the date of completion of the transaction. Tata Motors said that the two parties had met all necessary condition precedents for the transaction including government approvals.

Ford and Tata had signed a transfer agreement for the latter to acquire Ford’s Sanand plant in a Rs 725.7 crore deal (excluding taxes) that covered the transfer of all eligible Ford workers along with the acquisition of the plant including the machinery and equipment. Ford India will however continue to operate its Powertrain Manufacturing facility on a lease at the Sanand site.

Also read: Tata Motors Acquires Ford India's Sanand Plant For Rs. 725.70 Crore

Tata said that it had offered all eligible Ford employees employment with TPEML on terms, conditions and benefits similar to those provided by their previous employer. Those agreeing to the employment terms would become employees of TPEML with effect from January 10, 2023.

The acquisition of Ford’s Sanand plant will see the Indian carmaker increase its existing production. The Sanand plant will offer the carmaker with a capacity increase of 3 lakh units per annum scalable up to 4.20 lakh units.