725.7 crore. To finalize this arrangement, the firms have already signed a unit transfer agreement (UTA), which involves the transfer of all qualified employees of Ford India’s car production operations at the Sanand factory. According to the joint statement from the firms, the facility is close to the current Tata Motors Passenger Vehicles Limited production facility in Sanand, which should facilitate a smooth transfer.
According to Shailesh Chandra, MD at Tata Motors Passenger Vehicles and TPEML, “The agreement with FIPL [Ford India Private Limited] signed today is beneficial to all stakeholders and reflects Tata Motors’ strong aspiration to further strengthen its market position in the passenger vehicles segment and to continue to build on its leadership position in the electric vehicle segment”. Tata Motors will also acquire the whole land and buildings, as well as the appliances and equipment of the facility. Ford India will continue to run its Powertrain Manufacturing Facility by leasing back the plant’s land and facilities from Tata Passenger Electric Mobility on conditions mutually agreed upon.
According to Steve Armstrong, transformation officer at Ford Motor Company, “Today’s announcement marks an important step forward in Ford’s ongoing business restructuring in India, which is part of our Ford+ plan for strategic transformation. With the transfer of employment for eligible vehicle manufacturing employees included in the agreement, this milestone also highlights our best effort in caring for those impacted by the restructuring”.
On May 30, 2022, the government of Gujarat and the two parties involved inked a tripartite memorandum of understanding (MoU) to support the necessary clearances for the deal. According to the statement, the closing of the deal is subject to the receipt of the necessary government clearances and the satisfaction of customary conditions precedent.
