Manufacturer of automobiles in the United States The Gujarat government and Tata Motors are poised to sign a Memorandum of Understanding (MoU) to sell Ford India’s Sanand facility this week.
According to the Times of India, the MoU might be inked as early as Monday.
With the crucial issue of tax incentives and employment retention resolved, the official agreement is expected to be signed within 4-8 weeks. According to sources, Tata Motors pays between $100 and $150 million for the facility.
The acquisition will allow Tata Motors to expand its capacity in order to meet the brand’s rapidly increasing demand. The Gujarat government has backed the transaction and is willing to provide tax breaks to Tata Motors for car production that were previously only available to Ford.
Ford India had proposed a $250 million joint venture with Mahindra & Mahindra, which included the transfer of both plants. The factory will most likely be purchased for between $100 and $150 million by Tata Motors. The agreement only covers the vehicle manufacturing site in Sanand, not the engine factory that Ford employs for exports.
