Tata Motors Acquires This US Auto Major's India Plant

Tata Motors Limited (NYSE:TTM) subsidiary Tata Passenger Electric Mobility Limited (TPEML), has signed a Memorandum of Understanding (MOU) with the Government of Gujarat to acquire Ford Motor Co (NYSE:F) Ford India Private Limited's (FIPL) vehicle manufacturing facility at Sanand city. The financial terms were not disclosed.
The acquisition will include land & buildings, a vehicle manufacturing plant, machinery and equipment, and the transfer of all eligible employees of FIPL Sanand's vehicle manufacturing operations.
FIPL will operate its Powertrain manufacturing facilities by leasing back the land and buildings of the Powertrain unit from TPEML.
TPEML is expecting to establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units.
This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition.
Price Action: TTM shares closed higher by 0.64% at $28.19 on Friday.
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