Post the official exit of Ford Motor Company from the Indian market, Tata is set to take over the American manufacturer’s Chennai plant. Tata Group’s Chairman N Chandrasekaran met Chief Minister MK Stalin for a top-level meeting on Wednesday.
The details of the deal or the takeover are not out to the public yet. However, the takeover by Tata Motors is likely to result in a secure future for the thousands of Ford employees who were left hanging after the US automaker pulled out of the Indian market.
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According to DTNext, Stalin invited and requested the Tata Group chairman to consider taking over Ford’s plant. Minister of Industries, Tamil Nadu, Thangam Thennarasu and Chief Secretary V Irai Anbu were also present in the meeting.
Tata Group already has an extensive footprint in Tamil Nadu. The group operates in verticals like software, tea, chemicals and power in the state. The latest deal, if it becomes successful will further strengthen Tata Motor’s prowess in the automobile sector.
Ford employee union appealed to the state government
Last month, Chennai Ford Employee Union also approached the state government to not allow Ford to shut the plant in Chennai. The talks between the union and the company officials turned out to be inconclusive. The employees of Ford Motor even wore the company uniforms and staged a protest by raising slogans.
The Tamil Nadu government also announced fiscal benefits to the investor who buys the Ford plant. The government also ensured to fast track all the necessary approvals so that the sale and the transition go through smoothly.
There are around 2,000 employees at the plant. The state government was looking for an investor for the plant and the workers too. Ford had invested around 2.5 billion USD over the years in its Chennai and Sanand factories. The Chennai plant has a capacity to produce as many as 2,00,000 units of cars and 3.4 lakh units of engines annually.
Tata Motors posted 26% growth
With the electric vehicles and new popular models from Tata Motors, the manufacturer posted 26% YoY growth. The manufacturer sold 55,988 units of cars in September 2021. The brand will soon launch the all-new Tata Punch based on the ALFA platform of the brand that also underpins the Tata Altroz.
The all-new Punch will be launched on 20th October and it will get powered by the same 1.2-litre naturally-aspirated petrol engine that is available with a lot of other Tata products. Tata is also focussing on electric vehicles. The Nexon EV is the best-selling electric car in the Indian market while the brand recently launched the Tata Tigor EV. Tata will launch more electrified products in the future.
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