Jobaaj Stories
On 18th March, Tata Motors announced its plan to take over Ford's Sanand plant in Gujarat. Both companies had submitted the proposal for transfer of ownership to the government and the same has been approved by the government.
Ford announced its exit from the Indian automobile market last year which was a great shock to the industry. The company said that it had suffered operating losses of $2 billion over a decade which compelled them to cease operations. This was an opportunity for Tata Motors as it had a plant close to Ford's plant in Sanand, Gujarat.
Alibaba Q4 results are live, read more.
The takeover of Ford's plant would allow the company to improve its sales, especially now that the company is foraying into the EV with popular new models like the Avinya and Nexon EV Max. According to sources, the Cabinet issued a no-objection certificate for the proposal.
Furthermore, sources say that all benefits offered to Ford India will also be enjoyed by Tata Motors. Today the company announced that it signed an MoU with the Gujarat government. This agreement includes the transfer of Ford India's land & buildings, vehicle manufacturing plant, machinery, and transfer of all eligible employees.
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors, would invest in new machinery and equipment at the plant to make the unit operable, and to produce its vehicles. Tata Motors said that the MoU will "accelerate the enhancement of its PV/EV manufacturing capacity.".
The stock has seen some decline as it recently fell to a low of Rs 377.55 per share, wiping out all the gains that the stock had registered in mid-October when it jumped a massive 20.54%. Today, the stock witnessed a full gap-up opening as it surged over 3% and currently trades around Rs 443.10 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
