Tata Motors’ electric division could potentially take over Ford’s Gujarat plant

Ford will lease back the powertrain building at the plant to keep manufacturing engines.

Tata Motors today announced that it and Ford has signed a Memorandum of Understanding with the Gujarat government, to take over the Ford plant at Sanand. The talks are only in their preliminary stages, although the Tata Motors is looking to acquire the land, buildings, vehicle manufacturing plant and any other machinery and equipment. It is also looking to onboard all eligible Ford employees who are eligible and sign the relevant contracts.

What is interesting to note is that the on the Tata Motors front, it is TPEML (Tata Passenger Electric Mobility Limited) that has signed the agreement. That means, Tata Motors wants to utilise the space for manufacturing electric vehicles. The Sanand plant is already equipped with state-of-the-art manufacturing tech, and Tata too will install machinery to make electric cars. At the beginning, the annual capacity of the plant will be capped at 3,00,000 units per annum, which is scalable to 4,00,000 units.

As far as Ford is concerned, its not giving up everything. The American carmaker will actually continue to makes engines at site. It will however lease the powertrain manufacturing building back from TPEML to continue its operations.

The final agreement is expected to be signed in the coming weeks, once all the details are hashed out.