TATA motors to acquire Ford's India Plant

TATA Motors to acquire Ford’s India Plant

A step taken by TATA motors to acquire Ford’s India Plant!

India is paving the way for U.S auto major Ford’s final exit from Asia’a third largest economy. India’s Tata motors has signed an agreement to buy ford’s manufacturing plant in western state of Gujarat. This deal will be for $91.5 billion. Agreement is being signed between the Indian automaker subsidiary Tata passenger electric mobility and Ford India. It cover land assets and all eligible employees as well. Indian automakers, Tata Motors owns luxury marquee brands like Jaguar Land Rover with its manufacturing facility across the world.

Tata Motors capacity is nearing saturation. It’s one reason why Tata Motors is interested in buying ford’s plant. The acquisition is timely and win-win for all stakeholders as per Tata Motors said.

The Jaguar Land Rover parents said the acquisition of sun and plant will unlock a manufacturing capacity of 300,000 units every year. It could increase to 420,000. Ford has less than 2% of Indian passenger vehicle market when it stopped manufacturing in the country last year. Having struggled for more than two decades to generate profits, Ford finally decided to pull the plug on India operations last year.