Tata Motors, stated on Monday that its subsidiary has signed a Memorandum of Understanding (MoU) with the Gujarat government for the possible acquisition of Ford India’s Sanand facility.
“Tata Passenger Electric Mobility Limited (TPEML), a Tata Motors Ltd subsidiary, and Ford India Private Limited (FIPL) signed a Memorandum of Understanding (MOU) with the Government of Gujarat (GoG) today for the potential acquisition of FIPL’s Sanand vehicle manufacturing facility,” the Tata Group firm said in an exchange filing.
Subject to the signing of definitive agreements and receipt of appropriate permits, the possible acquisition will include land and buildings, a car manufacturing plant, machinery and equipment, and the transfer of all qualified personnel of FIPL Sanand’s vehicle manufacturing business. TPEML will lease back the land and buildings of the Powertrain unit to FIPL, which will run the Powertrain production facility.
The Ford India automobile production facility in Sanand is cutting-edge. TPEML intends to invest in new gear and equipment to commission and prepare the unit for car production.