Chennai: Tata Motors is said to be in early talks with Ford to buy the latter’s units near Chennai in Tamilnadu and Gujarat. If the deal is done, it will be Tata Motors’ second asset purchase from the US major after it bought Jaguar Land Rover from Ford for $2.3 billion in 2008.
This development comes in the backdrop of Tata Sons chairman N Chandrasekaran meeting Tamilnadu Chief Minister MK Stalin to discuss the company’s investment plans in the State.
It is to be noted that since the start of the year, Tata group companies have been active in new investment in Tamilnadu.
While the Tamilnadu Cabinet in January approved Tata Electronics’ Rs 5,763 crore (creating 18,250 jobs) project in Krishnagiri district to manufacture mobile phone components, Tata Consultancy Services is expanding its presence in Chennai by setting up two new centres in Sipcot, Siruseri.
Meanwhile, Ford’s Maraimalai Nagar plant has an annual production capacity of 200,000 vehicles and 340,000 engines. It manufactured the EcoSport and Endeavour which were exported to over 30 countries. The US auto major had invested more than $1 billion in the plant.