Tata Motors in talks to buy Ford's Gujarat, Tamil Nadu units

BY A STAFF REPORETR 

Tata Motors Ltd is in talks with Ford India to acquire the latter's manufacturing facilities in Tamil Nadu and Gujarat, The Times of India reported quoting sources.

Tata Motors' interest in Ford's units gained momentum after Chairman N. Chandrasekaran and Executive Director Girish Wagh met Tamil Nadu government officials recently, the report said.

When asked about the meeting with Tamil Nadu Chief Minister M.K. Stalin, a Tata Motors spokesperson called it a courtesy meeting but declined to share further details. Ford India spokesperson said that the company continues to explore possible alternatives to its manufacturing facilities and have "nothing further to comment on the ongoing speculation", the report said.

Currently, Tata Motors has three passenger vehicle-making plants in the country. While it has no manufacturing facility in Tamil Nadu, it has a plant in Gujarat, which is next to Ford's production unit.

If the transaction materialises, it will be Tata Motors' second asset purchase from the US auto major. In 2008, Tata Motors had acquired Jaguar Land Rover from Ford.

Last month, Ford Motor Company announced it was shutting down its vehicle manufacturing operations for sale in India, citing the failure to generate profit in the country even after significant investments over the past decade.

On Thursday, shares of Tata Motors closed 12% higher at 376.50 rupees on the National Stock Exchange.

Source : Eureka