Finally some good news for Ford Plant Workers.
Tata Motors, which has proposed to buy Ford India’s passenger car manufacturing facility for an unknown sum, plans to invest an extra Rs 2,000 crore in the site and produce two lakh electric cars (EVs) by 2026.
According to reliable sources, Tata Motors has promised the Gujarat government that no present employees of Ford India’s manufacturing facilities will be laid off.
Tata Motors has requested a reduction in the rate of land transfer. It has recommended paying 20% of the land’s jantri rate, which amounts to Rs 66 crore. It also wants Ford’s promised balance-eligible incentives extended until 2030. According to sources close to the situation, Tata Motors’ two big concessions have been approved.
Tata Motors presently manufactures 10,000 EVs at its Nano plant in Sanand. It intends to invest Rs 2,000 crore in the manufacturing facility it is likely to acquire, enabling it to manufacture two lakh EVs per annum.
According to a memorandum provided by the Gujarat government on the plan, “the proposed takeover will become a major landmark in EV production in India, triggering interest from local and global companies for putting up local capabilities and capacities for new technologies in the state.” A copy of the government note has been sent to the Times of India.
A key aspect of the agreement is that Tata Motors will not lay off any Ford employees, even though Ford reportedly employed roughly 23,000 people directly or indirectly.
Both Tata Motors and Ford India submitted a consent request for the transfer of Ford’s passenger vehicle production unit to Tata Motors earlier this year. The high-powered committee recently convened and approved the proposal, which included the concessions sought by Tata Motors.
Ford Motor Company spent Ps 4,500 crore to build the facility, which has a capacity of 2.4 lakh vehicles and 2.7 lakh engines per year. In India, the corporation has lost about $2 billion in operating losses over the last decade.
Tata Motors was one of the first entrants in Gujarat’s Mo-Town, Sanand, with an investment of Rs 4,500 crore with a capacity of manufacturing 1.5 lakh units per annum. The plant presently manufactures Tigor, Tiago and Tigor EV variants.
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