Is Tata Motors Acquiring Ford’s Factories In Gujarat, Chennai: How Will It Help Tata Motors?

Recently in the month of September, Ford pulled a plug on its India operations. Since then there have been speculations regarding the future of its employees and assets in India. It looks like the classic situation of one’s loss is a profit of another. Yes, Indian automobile giant Tata Motors might just benefit from these latest developments.

Tata might acquire Chennai and Sanand Plants of Ford

Till yesterday, there were reports which were directed towards, Tata Motor’s acquisition of the Chennai plant of Ford. Now, according to the latest news, Tata might be taking steps to acquire Ford’s Sanand plant as well.

Reports suggest that Tata Group Chairman N Chandrasekaran and the chief minister of Tamil Nadu have had discussions regarding the planned takeover of Ford’s Chennai plant. There had been no word regarding the American brand’s second manufacturing unit located at Sanand in Gujarat. MG Motor India also seems to be interested in acquiring Ford’s assets.

Tata to gain from the new possible assets

Currently, Tata Motors has three manufacturing units – Pune, Sanand, and Ranjangaon. If the acquisition of Ford’s facilities is successful, it would add 4.4 lakh units to its overall production capacity.

Ford had announced its decision to stop manufacturing vehicles in India after accumulating huge losses over the years which had amounted to over US $ 2 Billion. However, the carmaker will continue to sell its CBU models in India.