Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead

shortbread · 7th October 2021, 18:05

Quote:

Originally Posted by amvj

This should give some respite to the employees in the Ford Chennai plant. Mahindra should buy the Sanand plant since they are already in bottleneck with Thar and XUV700 deliveries.

That's due to the chip shortage and not production capacity constraints.

shortbread · 7th October 2021, 18:14

Quote:

Originally Posted by Desi Dybuk

Shouldn't Tata instead focus on getting the Ford's ultra modern Sanand plant instead of the decades old Chennai plant? They already have their supplier base in Gujarat & it would be an easy addition to their capacity in that state. Why go for an older plant?

Quote:

Originally Posted by kiku007

+1.

I was betting that the Hyundai-KIA group will be the natural suitor for Ford's Chennai plant.

Pretty sure the Sanand facilities will be a lot more pricier and have a lot more suitors.

Also Stalin must have added sweeteners for acquiring the TN plant.

If the news is true, does this include the Ford T6 body on frame platform?

Raghu M · 7th October 2021, 18:55

Wow, simply wow if this does materialize. It's an amazing feeling to see an Indian company consume an American giant in this fashion (in a positive way). I sincerely pray that this news does come true. TATA has been doing exceptionally well. The Sep 21 sales are proof that the Indian automaker is having a blast. This should help TATA work on dishing out highly superior quality products in the future.

vharihar · 8th October 2021, 07:05

Quote:

Originally Posted by DicKy

Buying JLR then, now news of Tata buying Ford's plant.

Quote:

Originally Posted by BoneCollector

That's a great news if it turns out to be true. I hope they also take the workforce of Ford along with the factory.

In my dreams, I would also like Ford to handover the production of Endeavor to Tata, lock stock and barrel. That would be simply mind blowing!

I don't think Tata is buying Ford. They're just buying Ford's TN assets in order to increase its own capacity, viz. Entire plant with machinery, taking over the workers, etc. The Endeavor etc models are being retained by Ford. Tata will not be using this plant to manufacture any of Ford's products. That's my understanding.

arvindmanju · 8th October 2021, 07:17

Mod Note: There are several language, spelling & grammatical errors in your posts. This negatively affects the forum experience for other readers.

Kindly ensure that you proof-read your posts prior to submission. Also, it would be a good idea to use a spell-checker.

sureshkishore · 8th October 2021, 07:24

With current volumes, Tata may not need an additional manufacturing plant.
But Tata's action would have been considering the future needs for expansion. Cost of this take over should work out much cheaper than to setting up a new facility. Location, Manpower availability, pro-industry government, all must have been other factors for this proposed investment.

Tata, investing in capacity expansion, is exciting news for me, both, as an investor and as a car buyer. Hope the decision works out in their favor.

arjab · 8th October 2021, 08:38

* Tata probably does not need any additional passenger car facility right now as it has enough capacity in its existing plants to cater to near and medium term demand.

* However, Tata Commercial Vehicles division may be requiring an additional facility for its new upcoming platforms spanning various segments and tonnage's, military and defence requirements.

* Tata has a presence in South India, (Dharwad, Karnataka), but capacity is limited and mainly for fully built units.
A potential TML Chennai CV presence will convey a strong message of seriousness and faith in the region to TML's consumer base. Time to market for new products can also, theoretically, be shortened.

* Tata has a good reputation in CV's in emerging economies and Chennai being a port city can support Tata in export volumes & competitive cost logistics/shipping & transportation. Also, remember the fact that the outgoing Ford India top boss has been inducted into TML CV payroll. More to it than meets the eye?

* The political establishment would have already committed sweeteners to Mr Chandrasekharan in order to entice the TML team. Mr Chandrasekharan also hails from the same region. The "commonality" the Tata top boss may share with respect to languages and cultural nuances plays a large part in the "comfort factor" when negotiating such mega-deals. (Rumour has it that one of the reasons the erstwhile Ford -Mahindra deal fell through was because of a lack of rapport and trust which Dr. Pawan Goenka enjoyed with the Ford top boss was simply not there any more)

* TML Chennai will have access to a ready and mature Tier-1 supplier base in and around Chennai, Sriperumbudur, Oragadam/SIPCOT. All Tier-1's are already present.

* They will have access to testing facilities too as NaTrip Oragadam proving grounds are almost complete.

* Lastly the psychological bit: they'll be at Ashok Leyland's doorstep - their arch rival since time immemorial. It's a nice feeling to look eye to eye with your competitor when going into the battle of marketshare and volumes!

* Many experienced AL folks will now start floating their curriculum vitae to TML or getting head hunted.

This will be interesting. Let's wait and watch how things pan out.

Best...,

mnram · 8th October 2021, 08:42

Exciting news and kudos to the TN govt & Tata Motors in pushing to get this done. The impact on the direct and indirect jobs is huge and it is a big saving for TML. (Existing plant is always cheaper than setting up a new plant)

It is interesting to see that Tata is investing in building up the manufacturing capacity and they are opening a large number of new dealerships all over India. Wish they start investing in service centers in improving the existing ones and also opening up new ones. Hope this do not end up as their Achilles heel.

ajmat · 8th October 2021, 08:53

Why would Tata buy Fords Plant?

Arguments for

Expansion in Pune is limited - Pune is bureaucratic and steeped in tradition. Ford workers are better trained. Pune could be used for trucks and Fords assets used for cars
Acquire good assets for a song
Use Chennai eco-system to assemble EV components and perhaps cars
Contract manufacture for other manufacturers - Our volumes might not justify a new entrant setting up infrastructure. Heck, they could assemble some Fords for Ford!
As Hyundai and Maruti have proven - volume is key, as well as a good product. All Tata needs is to add "reliable"

Arguments against

Over Capacity within Tata and the overall industry
JLR is still in the throes of a rebirth

msiva75 · 8th October 2021, 09:10

It seems Tata is discussing for both Plants.

https://timesofindia.indiatimes.com/...w/86856338.cms

AutoNoob · 8th October 2021, 09:25

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

Source : TOI

Quote:

Tata Motors is in early talks with Ford to buy the latter’s units in Tamil Nadu and Gujarat, multiple sources have told TOI...

Tata Motors has no manufacturing facility in Tamil Nadu, it has a plant in Gujarat, which is next to Ford’s production unit...

Motilal Oswal Financial Services head (research) Siddhartha Khemka said that the Ford India deal would be worth it for Tata Motors as it would be a distress sale topped with certain benefits expected from the government of Tamil Nadu.

the.dogfather · 8th October 2021, 10:00

It's possible that this aquisition is for setting up an EV plant. Tata has been seeing good growth in their EV sales and has been planning on increasing the EV portfolio.
In June Tata had announced that it will launch 10 more EV models by 2025 and is considering setting up a battery plant. So this aquisition may be purely for EV drive trains.

fiat_tarun · 8th October 2021, 10:29

Eventually I see Tata getting out of the Fiat Ranjangaon plant which will become a full Stellantis unit and hence the Ford plants make sense.

Strategically, Chennai makes sense with a fully established vendor base and experienced workforce.

They should only look at one plant though and buying 2 will be suicide, much like what Ford did to themselves building that fancy Sanand plant when Chennai wasn't running to capacity.

narayans80 · 8th October 2021, 10:58

Quote:

Originally Posted by arjab

Tata Commercial Vehicles division may be requiring an additional facility

I think your assessment on Tata using the Ford facility for commercial vehicles could be correct. Its not just Ashok Leyland, Daimler Commercial Vehicles too has a supplier ecosystem built around its Oragadam facility.

Jhinchak · 8th October 2021, 11:03

US based private equity Company TPG is in Talks with TATA motors for an 1 billion dollar investment in their EV business.
TATA also in final stages of acquiring the Ford Plant in Tamil Nadu.

Resulting in

Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead-tata-share-price.jpg

A 40rs+ jump in share price in the past 5 days.
Do you think the ford plant in TN might be a more EV specific plant?

7th October 2021, 18:55	#18
Raghu M Senior - BHPian Join Date: Jul 2020 Location: Hyderbad Posts: 1,003 Thanked: 3,525 Times	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead Wow, simply wow if this does materialize. It's an amazing feeling to see an Indian company consume an American giant in this fashion (in a positive way). I sincerely pray that this news does come true. TATA has been doing exceptionally well. The Sep 21 sales are proof that the Indian automaker is having a blast. This should help TATA work on dishing out highly superior quality products in the future.
	() Thanks

8th October 2021, 07:17	#20
arvindmanju BHPian Join Date: Jul 2009 Location: KA01 Posts: 472 Thanked: 548 Times	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead Mod Note: There are several language, spelling & grammatical errors in your posts. This negatively affects the forum experience for other readers. Kindly ensure that you proof-read your posts prior to submission. Also, it would be a good idea to use a spell-checker. Last edited by GTO : 8th October 2021 at 09:07.
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8th October 2021, 07:24	#21
sureshkishore BHPian Join Date: Nov 2007 Location: trivandrum Posts: 478 Thanked: 290 Times	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead With current volumes, Tata may not need an additional manufacturing plant. But Tata's action would have been considering the future needs for expansion. Cost of this take over should work out much cheaper than to setting up a new facility. Location, Manpower availability, pro-industry government, all must have been other factors for this proposed investment. Tata, investing in capacity expansion, is exciting news for me, both, as an investor and as a car buyer. Hope the decision works out in their favor. Last edited by sureshkishore : 8th October 2021 at 07:26. Reason: Typo
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8th October 2021, 08:38	#22
arjab Senior - BHPian Join Date: Feb 2005 Location: MAA/CCU Posts: 1,424 Thanked: 5,457 Times View My Garage	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead * Tata probably does not need any additional passenger car facility right now as it has enough capacity in its existing plants to cater to near and medium term demand. * However, Tata Commercial Vehicles division may be requiring an additional facility for its new upcoming platforms spanning various segments and tonnage's, military and defence requirements. * Tata has a presence in South India, (Dharwad, Karnataka), but capacity is limited and mainly for fully built units. A potential TML Chennai CV presence will convey a strong message of seriousness and faith in the region to TML's consumer base. Time to market for new products can also, theoretically, be shortened. * Tata has a good reputation in CV's in emerging economies and Chennai being a port city can support Tata in export volumes & competitive cost logistics/shipping & transportation. Also, remember the fact that the outgoing Ford India top boss has been inducted into TML CV payroll. More to it than meets the eye? * The political establishment would have already committed sweeteners to Mr Chandrasekharan in order to entice the TML team. Mr Chandrasekharan also hails from the same region. The "commonality" the Tata top boss may share with respect to languages and cultural nuances plays a large part in the "comfort factor" when negotiating such mega-deals. (Rumour has it that one of the reasons the erstwhile Ford -Mahindra deal fell through was because of a lack of rapport and trust which Dr. Pawan Goenka enjoyed with the Ford top boss was simply not there any more) * TML Chennai will have access to a ready and mature Tier-1 supplier base in and around Chennai, Sriperumbudur, Oragadam/SIPCOT. All Tier-1's are already present. * They will have access to testing facilities too as NaTrip Oragadam proving grounds are almost complete. * Lastly the psychological bit: they'll be at Ashok Leyland's doorstep - their arch rival since time immemorial. It's a nice feeling to look eye to eye with your competitor when going into the battle of marketshare and volumes! * Many experienced AL folks will now start floating their curriculum vitae to TML or getting head hunted. This will be interesting. Let's wait and watch how things pan out. Best..., Last edited by arjab : 8th October 2021 at 08:40.
	(46) Thanks

8th October 2021, 08:42	#23
mnram BHPian Join Date: Feb 2021 Location: Toronto Posts: 29 Thanked: 87 Times	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead Exciting news and kudos to the TN govt & Tata Motors in pushing to get this done. The impact on the direct and indirect jobs is huge and it is a big saving for TML. (Existing plant is always cheaper than setting up a new plant) It is interesting to see that Tata is investing in building up the manufacturing capacity and they are opening a large number of new dealerships all over India. Wish they start investing in service centers in improving the existing ones and also opening up new ones. Hope this do not end up as their Achilles heel.
	(3) Thanks

8th October 2021, 08:53	#24
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,858 Thanked: 27,925 Times View My Garage	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead Why would Tata buy Fords Plant? Arguments for Expansion in Pune is limited - Pune is bureaucratic and steeped in tradition. Ford workers are better trained. Pune could be used for trucks and Fords assets used for cars Acquire good assets for a song Use Chennai eco-system to assemble EV components and perhaps cars Contract manufacture for other manufacturers - Our volumes might not justify a new entrant setting up infrastructure. Heck, they could assemble some Fords for Ford! As Hyundai and Maruti have proven - volume is key, as well as a good product. All Tata needs is to add "reliable" Arguments against Over Capacity within Tata and the overall industry JLR is still in the throes of a rebirth
	(28) Thanks

8th October 2021, 09:10	#25
msiva75 BHPian Join Date: Oct 2007 Location: Chennai Posts: 48 Thanked: 42 Times	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead It seems Tata is discussing for both Plants. https://timesofindia.indiatimes.com/...w/86856338.cms
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8th October 2021, 10:00	#27
the.dogfather BHPian Join Date: Sep 2021 Location: Bangalore Posts: 121 Thanked: 710 Times	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead It's possible that this aquisition is for setting up an EV plant. Tata has been seeing good growth in their EV sales and has been planning on increasing the EV portfolio. In June Tata had announced that it will launch 10 more EV models by 2025 and is considering setting up a battery plant. So this aquisition may be purely for EV drive trains.
	() Thanks

8th October 2021, 10:29	#28
fiat_tarun Senior - BHPian Join Date: Jan 2010 Location: Pune / Mysore Posts: 1,933 Thanked: 3,764 Times View My Garage	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead Eventually I see Tata getting out of the Fiat Ranjangaon plant which will become a full Stellantis unit and hence the Ford plants make sense. Strategically, Chennai makes sense with a fully established vendor base and experienced workforce. They should only look at one plant though and buying 2 will be suicide, much like what Ford did to themselves building that fancy Sanand plant when Chennai wasn't running to capacity.
	(12) Thanks

8th October 2021, 11:03	#30
Jhinchak BHPian Join Date: Dec 2020 Location: Bangalore Posts: 112 Thanked: 317 Times	re: Tata in the race to acquire Ford's Chennai plant. EDIT: Acquires Sanand plant instead US based private equity Company TPG is in Talks with TATA motors for an 1 billion dollar investment in their EV business. TATA also in final stages of acquiring the Ford Plant in Tamil Nadu. Resulting in A 40rs+ jump in share price in the past 5 days. Do you think the ford plant in TN might be a more EV specific plant?
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