Tata Motors all set to acquire Ford’s Sanand plant

Decks have been cleared for Tata Motors’ takeover of Ford India’s passenger vehicle manufacturing plant in Sanand. Both the companies have submitted a consented proposal for transfer of ownership of Ford’s Sanand plant to Tata Motors. In all likelihood, a high-power committee (HPC) appointed by the state government will give a nod to the proposal, clearing the way for Tata Motors’ takeover of the plant at the earliest.
Both the companies have been in talks soon after the American auto major announced its exit from India last year. “An HPC was formed by the government of Gujarat in April 2018 to resolve issues related to implementation of large projects. The committee is chaired by the chief minister. During the HPC meeting scheduled next week, the proposal of Ford India to transfer its vehicle assembly plant at Sanand to Tata Motors and issues related to the transfer will be discussed at length and finalised,” said a source.
It remains to be seen whether Tata Motors will enjoy the exceptional incentives and benefits it had given at the time of starting the Nano plant at Sanand for the new plant it is set to acquire. A decision will be taken on whether the company will get added benefits or same that were extended to Ford India. Ford Motor Company had invested £450 million to set up the plant with a capacity to manufacture 240,000 units and 270,000 engines per annum. The company has accumulated operating losses of around $2 billion in India in the last decade.