[shortbread]

Originally Posted by volkman10

Tata Motors set to take over Ford’s Sanand plant.

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If this does materialise it will be a steal for TML, or whoever the new owner will ultimately be. Perhaps among the world's most state of the art auto manufacturing facilities, Ford spent a whopping USD 1 billion setting up in Sanand! For perspective, that's what Tata spent to buy the whole of JLR. To top that its almost new, completed just 5-6 years ago

Remember that the plant was initially set up with a big focus on exports, therefore Ford spared no expenses on automation and quality control in all the processes. It has almost fully automated paint and body shops.

This Ford Sanand facility will give a big boost to not just the buyer's vehicle assembly operations but engine manufacturing as well. The vehicle manufacturing plant has an installed annual capacity of 240,000 units and includes stamping, body, paint and assembly operations. The engine manufacturing unit incorporates machining as well as assembly operations and has an annual capacity of 270,000 engines.

TML already has experience in acquiring and running Ford facilities as well as adapting/aligning their processes since the JLR take over. Plus the Ford plant is less that half an hour away from Tata's own Sanand plant.

Hopefully Tata is able to fully utilise the unrealised potential of the Ford Sanand unit.

https://www.youtube.com/watch?v=1BoMsRVyAfc

Originally Posted by arjab

Tata has also deployed the turbo charged version of this engine in the Nexon petrol and Altroz turbo. A four cylinder turbocharged, 1500cc version of this engine will soon see light of day powering the bigger Tata models.

The advantage of this engine is the low development costs due to the indirect injection + turbocharging format. Also it is relatively low revving hence most of the engine componentry is under much less stress and is performing at a lower maximum operational threshold. Also it has proved to be a rather consistent workhorse and reported user failures of this 1.2L , three cylinder petrol are rare.
Remains to be seen, whether Tata wants to develop this engine further by implementing variable valve timing etc. It's not impossible to do it!

On the topic, it would be brilliant for Tata if they could get the license to manufacture and use the fairly new 1.5L Ti-VCT petrol dragon engine Ford used to make at Sanand.

[sid3091]

Originally Posted by shortbread

On the topic, it would be brilliant for Tata if they could get the license to manufacture and use the fairly new 1.5L Ti-VCT petrol dragon engine Ford used to make at Sanand.

Maybe they can steal the Sync 3 and add it to all their vehicles. It would be a considerable upgrade over the Harrier's horrendous infotainment.

[shortbread]

Originally Posted by sid3091

Maybe they can steal the Sync 3 and add it to all their vehicles. It would be a considerable upgrade over the Harrier's horrendous infotainment.

Don't think infotainment has anything to do with Sanand.

[aravind.anand]

Originally Posted by shortbread

TML already has experience in acquiring and running Ford facilities as well as adapting/aligning their processes since the JLR take over. Plus the Ford plant is less that half an hour away from Tata's own Sanand plant.

Not half an hour away, it is right behind Tata's Sanand plant. Probably the gates are 5 minutes drive apart.

I too want to see some company making good use of the brilliant, modern and well-automated Sanand facility of Ford's.

[speedguy]

Originally Posted by shortbread

Ford spent a whopping USD 1 billion setting up in Sanand! For perspective, that's what Tata spent to buy the whole of JLR.

I think there is something wrong. IIRC, Tata bought JLR for USD 2.8 billion & that too in 2008. Ford built this in 2014-15 for USD 1 billion is not even close if we adjust the inflation.
And yes, I agree with all the points you mentioned. It would be a shot in the arm kind of deal.

[shortbread]

Originally Posted by speedguy

I think there is something wrong. IIRC, Tata bought JLR for USD 2.8 billion & that too in 2008. Ford built this in 2014-15 for USD 1 billion is not even close if we adjust the inflation.
And yes, I agree with all the points you mentioned. It would be a shot in the arm kind of deal.

You're right, Tata bought JLR for GBP 1.1 billion not usd, my mistake.
http://news.bbc.co.uk/1/hi/business/7313380.stm

[fiat_tarun]

Since Ford India has applied for the PLI scheme benefits, I am actually quite surprised that it is the Sanand plant that is being sold. I thought it would make more sense to adapt the much more modern Sanand plant for EV production.

If their India EV export plans are real then it looks like they will keep Chennai which will need a significant upgrade.

Guess it made more business sense as they would have got a better deal for Sanand vs the investments required for the upgrade to the Chennai plant for EV's...

Originally Posted by shortbread

...

This Ford Sanand facility will give a big boost to not just the buyer's vehicle assembly operations but engine manufacturing as well.
.
.
.
The engine manufacturing unit incorporates machining as well as assembly operations and has an annual capacity of 270,000 engines.

IIRC, Ford will continue to operate the Sanad engine plant for export requirements. The 2.0L Panther engine for the Ranger / Everest is made in India and will continue in the future. The buyer will only get the assembly plant.

[TusharK]

Tata gets govt. nod to acquire Ford's Sanand plant

The government of Gujarat has cleared the proposal submitted by Tata Motors to acquire Ford India's manufacturing unit in Sanand. It is said that an MoU will be signed on May 30, 2022.

According to media reports, the cabinet has issued a no-objection certificate to the proposal. It would enable Tata Motors to reap the benefits extended to Ford when the plant was set up.

Tata Motors had been in the race to acquire Ford's manufacturing unit in India following the latter's exit from the market. The Sanand plant has been sitting idle since April this year.

Tata's existing facility at Sanand has an annual production capacity of 1.5 lakh units. The acquisition of Ford's plant will add another 2.4 lakh units for a total capacity of 3.9 lakh units per annum.

Source: ET Auto

Link to Team-BHP News

[searacer932]

Originally Posted by TusharK

Tata gets govt. nod to acquire Ford's Sanand plant

The government of Gujarat has cleared the proposal submitted by Tata Motors to acquire Ford India's manufacturing unit in Sanand. It is said that an MoU will be signed on May 30, 2022.

It will be interesting to see as to who takes over Ford's MM Nagar plant in the outskirts of Chennai! May be it makes sense for Hyundai or M&M or Renault to take over that plant considering these companies already have their existing plants or R&D divisions in Chennai.

However the MM Nagar plant is quite an old one and may be might need a bit of investment from whomsoever who is taking over that plant to make it modern.

On the other hand I believe Ford's Sanand plant is supposed to be a state of the art modern plant!

[CEF_Beasts]

The MoU has been signed

[shortbread]

For context, Ford spent USD 1 billion setting up the Sanand facility.

US car maker Ford India is set to sign a Memorandum of Understanding (MoU) this week with both the Gujarat government and Tata Motors to sell its Sanand plant. The MoU may be signed on Monday itself.

With the critical issue of tax incentives and job retention out of the way, the definitive agreement is likely to be inked within 4-8 weeks and Tata Motors may pay about $100-150 million for the plant, say people in the know. The Gujarat government has supported this deal and is willing to extend tax benefits, meant for Ford, to Tata Motors for manufacturing of cars.

Ford India had entered into a proposed JV with Mahindra & Mahindra for $250 million which included transfer of both the plants.

The takeover will add to capacity at a time when utilization levels are running well ahead of 80-85% at the current monthly production rate.

Tata Motors is currently having peak production capacity of 50,000 a month, which translates into annual production capacity of 6,00,000 per annum. The tentative production plans shared with vendors suggest that the company is planning to produce around 550,000 units in the current year. This means its plants will be running at a peak level at the end of current year, hence it would require additional production capacity to cater to incremental volume in the coming two years.

Ford’s Sanand plant has a total installed capacity to manufacture 3,00,000 units annually and its engine plant has installed annual capacity of 270,000 units. The US carmaker invested about $1 billion on the Sanand plant. After extending severance packages to the workers, Ford India facility has a workforce of 1,400 people at the factory. They will get jobs at Tata Motors.

The maker of Harrier and Safari SUV currently has installed capacity of 150,000 at its existing Sanand plant where it rolls out the entry-level Tiago, Tigor and Tigor EV electrified sedan and invested close to Rs 4,500 crore in the Gujarat plant. Tata Motors’ total installed capacity would be increased by 40% after taking over Ford’s Sanand production facility.

Typically, a greenfield car plant with capacity of 250,000 units requires an investment of Rs 4000-5000 crore and additional Rs 7000-8000 crore of additional ancillary ecosystem. Analysts believe if Tata Motors is able to purchase Ford plant for less than Rs 2000 crore it would be cost effective since the acquisition will be at a level lower than replacement cost.

https://economictimes.indiatimes.com...w/91874422.cms

Originally Posted by searacer932

It will be interesting to see as to who takes over Ford's MM Nagar plant in the outskirts of Chennai! May be it makes sense for Hyundai or M&M or Renault to take over that plant considering these companies already have their existing plants or R&D divisions in Chennai.

However the MM Nagar plant is quite an old one and may be might need a bit of investment from whomsoever who is taking over that plant to make it modern.

Or perhaps OLA, if they're serious about foraying into manufacturing cars. They already have manufacturing presence in TN.

The Ford factory will need investments in order to upgrade. That said the experience of Fords workforce will be beneficial for a novice like OLA. For a player looking to make it's baby steps into making cars, the almost 24-25 years of expertise in manufacturing and quality control the Ford chennai crew have, must be priceless.

Plus being close to the ports it will be a good export base. The Chennai plant is already experienced in exporting vehicles to Ford's global markets.

[Venkatesh]

Not seeing improved severance package, Ford India's Chennai workers protest

The workers are also dejected at being left out, as Ford India's Gujarat plant and its workers will be taken over by Tata Motors' subsidiary Tata Passenger Electric Mobility

Around 2,200 workers of Ford India Pvt Ltd's plant near here are on protest demanding better severance package as the company has decided to shut down the plant sometime next month, said a workers' union leader

Source

[CEF_Beasts]

Tata buys Ford’s Sanand plant for ₹725.7 Crore

[XRoader_001]

Tata Motors signs Definitive Agreement for the acquisition of Ford India’s Sanand plant


Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Ltd, and Ford India Private Limited (FIPL), have today signed a Unit Transfer Agreement (UTA) for the acquisition of FIPL’s manufacturing plant situated at Sanand, Gujarat, which inter-alia includes :

(i) entire land & buildings
(ii) Vehicle Manufacturing Plant along with machinery and equipment situated therein
and
(iii) transfer of all eligible employees of FIPL’s vehicle manufacturing operations at Sanand, for a total consideration, exclusive of taxes, of Rs 725.7 Cr (Seven Hundred Twenty Five Crores and Seventy Lakhs).

FIPL will continue to operate its Powertrain Manufacturing Facility by leasing back the land and buildings of the Powertrain Manufacturing Plant from TPEML on mutually agreed terms.

TPEML has agreed to offer employment to the eligible employees of FIPL’s Powertrain Manufacturing Plant in the event of FIPL’s cessation of such operations.

The closure of the transaction will be subject to the receipt of relevant approvals from the government authorities and fulfilment of customary condition precedents.

The government of Gujarat, TPEML and FIPL have already executed a tripartite MoU on 30th May 2022 to support all relevant approvals for the above transaction.

It will unlock a state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum.

[volkman10]

Tata Motors EV arm acquires Ford Plant in Gujarat for INR 725 crore.

Tata Passenger Electric Mobility Ltd (TPEML), a Tata Motors subsidiary has bought the Ford India’s manufacturing plant situated at Sanand, Gujarat, including entire land and buildings, vehicle manufacturing plant along with machinery and equipment for a consideration of Rs 725.7 crore

As part of the agreement all the eligible employees at the unit will be transferred to Tata Motors.

Ford India will continue to operate its powertrain manufacturing facility by leasing back the land and buildings of the powertrain manufacturing plant from TPEML on mutually agreed terms. TPEML has agreed to offer employment to the eligible employees of FIPL’s Powertrain Manufacturing Plant in the event of FIPL’s cessation of such operations.

The plant offers 3,043 direct jobs and 20,000 indirect jobs.


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