Tata Motors Can Buy Ford India Factories To Save 4000+ Jobs; Tamil Nadu Govt Acts As Interlocutor For This Mega-Deal

The end of one journey can be the start of another, right? Yes. As the American Automaker Ford announced the closure of its India manufacturing units in September 2021, questions about the future of existing manufacturing facilities had risen on the surface. This is where the journey of Tata Motors comes into play.

Tata Motors is in talks with Ford to take over its Manufacturing plants in Gujrat and Tamilnadu

Now, it has been over two months since Ford announced its plan to exit India. Identifying the possible opportunity the home-grown automobile major Tata Motors has been in talks with the US-based auto giant for acquiring its two plants in Tamil Nadu and Gujarat.

According to sources, a high-level team from Tata Motors has visited the sprawling facilities owned by Ford India in Maraimalai Nagar, Chennai, and in Sanand, Gujarat, as part of the negotiations between the two firms.

According to sources, Tata Motors is keen on taking over the Sanand plant due to its proximity to its own manufacturing unit. As far as the Maraimalai Nagar plant is concerned, the Tata Group is still exploring its options

Tamilnadu Government is acting as a mediator

To expedite the discussions Tata Group Chairman N Chandrasekaran met Tamil Nadu Chief Minister M K Stalin at his residence in early October. Along with that a high-level delegation from the Guidance Bureau of Tamil Nadu also met with high-ranking officials from Tata Motors in Mumbai.

The Tamil Nadu government played a very crucial role in these talks. It is acting as an interlocutor between Ford India and Tata Motors. This issue is important for TN Govt. as the former’s exit is likely to have an impact on those working in the factory and hundreds of Micro, Small, and Medium Enterprises (MSMEs).

Another round of talks is likely to take place between the two companies in the first week of December. Notably, if Tata Motors’ succeeds in its efforts and takes over the Ford factory on the outskirts of Chennai, this will be the company’s first foray into south India to manufacture passenger cars.

On September 9 Ford India had announced its plans to exit India operations by closing its plants. It should be noted that the company will continue to cater to the Indian market through imported cars.