Gujarat: Now Tata’s car will be made in Ford’s plant, agreement between the two companies

A major car company has suffered a loss due to the continuous decline in global sales since the Corona epidemic. India’s fastest growing auto company Tata Motors has decided to expand its reach in Gujarat. Tata Motors has bought the Gujarat plant of global automobile giant Ford, which recently announced the closure of its Indian business. The Gujarat cabinet has given its nod to go ahead with the deal presented by the two carmakers.

It is worth noting that earlier this week the Gujarat cabinet gave initial approval to the deal. After the approval of the proposal of both the companies, Tata will now be able to take over Ford’s plant. On Monday, an MoU has also been signed between Tata Motors and Ford against Gujarat CM Bhupendra Patel. However, an official on the issue said, “The Gujarat cabinet’s approval is just a preliminary green signal. Negotiations between the two companies on deal size, staff, finance and other benefits involved in the acquisition are at an early stage. The companies are still on the deal. K. is in talks to work out the specifics of size, labor issues, financials and benefits involved in the takeover.

Significantly, due to the worldwide economic slowdown, the impact of Corona and the loss of sales, Ford had announced to leave India last year. A formal ceremony is being planned for the signing of the MoU on May 30, in which representatives of both the companies will be present. According to an official, the state government has agreed to pass on all benefits given to Ford to Tata Motors for the remaining period of the concession agreement.

Earlier this month, Ford also abandoned its plans to make electric vehicles in India for global markets. Ford India was among 20 different companies that were selected under the Government of India’s Production Linked Incentive Scheme announced in February 2022. But she can now withdraw her application, as she will no longer invest in the country.