Canada markets open in 5 hours 37 minutes
  • S&P/TSX

    18,307.91
    -19.13 (-0.10%)
     
  • S&P 500

    3,647.29
    -7.75 (-0.21%)
     
  • DOW

    29,134.99
    -125.82 (-0.43%)
     
  • CAD/USD

    0.7262
    -0.0025 (-0.34%)
     
  • CRUDE OIL

    77.07
    -1.43 (-1.82%)
     
  • BTC-CAD

    25,869.59
    -2,157.69 (-7.70%)
     
  • CMC Crypto 200

    429.52
    -29.62 (-6.45%)
     
  • GOLD FUTURES

    1,625.80
    -10.40 (-0.64%)
     
  • RUSSELL 2000

    1,662.51
    +6.63 (+0.40%)
     
  • 10-Yr Bond

    3.9640
    0.0000 (0.00%)
     
  • NASDAQ futures

    11,221.75
    -112.00 (-0.99%)
     
  • VOLATILITY

    34.19
    +1.93 (+5.98%)
     
  • FTSE

    6,844.76
    -139.83 (-2.00%)
     
  • NIKKEI 225

    26,173.98
    -397.89 (-1.50%)
     
  • CAD/EUR

    0.7589
    0.0000 (0.00%)
     

Tata Motors to buy Ford India's manufacturing plant for $91 million

·1 min read
FILE PHOTO: Tata Motors logos are pictured outside their flagship showroom in Mumbai

(Reuters) - Tata Motors Ltd signed an agreement on Sunday to buy Ford Motor's manufacturing plant in the western state of Gujarat for 7.26 billion rupees ($91.5 million).

The agreement between the Indian automaker's subsidiary Tata Passenger Electric Mobility Ltd (TPEML) and Ford India Pvt Ltd (FIPL) covers land, assets and all eligible employees.

"With our manufacturing capacity nearing saturation, this acquisition is timely and a win-win for all stakeholders," Tata Motors said in a statement.

The Jaguar Land Rover parent said the acquisition of the Sanand plant will unlock a manufacturing capacity of 300,000 units per year that could increase to 420,000.

Ford had less than 2% of the Indian passenger vehicle market when it stopped production in the country last year, having struggled for more than two decades to generate profits.

($1 = 79.3600 Indian rupees)

(Reporting by Aditi Shah in New Delhi and Jahnavi Nidumolu in Bengaluru; editing by John Stonestreet)