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Gujarat govt nods Tata Motors to acquire Ford's Sanand plant

2022-05-31

The government of Gujarat has approved Tata Motors to take over Ford India’s passenger car plant in Sanand.

An official told the media that the state Cabinet had issued a no-objection certificate for the acquisition.

According to the official, Tata Motors would now continue to enjoy the incentives presented to Ford India.

Tata Motors might sign a Memorandum of Understanding (MoU) with Ford Motor Company after clearing the issues of the plant, including labour and financial matters.

Tata Group had been meeting Gujarat and Tamil Nadu state governments for a potential takeover of Ford India’s plants. The approval was after Ford announced its exit from India last year.

The Sanand plant consists of around 2,500 permanent workers, including about 900 union workers.

After passenger cars were discontinued in the plant, workers at the Sanand plant were engaged in manufacturing spare parts for Ford cars, besides engines.

The company has set an internal deadline for the car plant up to March 2022 for the manufacture of spare parts.

In 2021, Ford was in discussion with other companies like Ola and Mahindra for a manufacturing contract or the sale of both factories, but do not work out and resulted in a closure announcement.

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