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Old 8th October 2021, 11:14   #31
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Default Re: Tata in the race to acquire Ford's Chennai plant

Tata Motor's Sanand Plant has about 150,000 cars/year capacity, while it's Pimpi-Chinchwad complex can churn out 350,000 cars/year.

So in total installed capacity is 500,000+ and the Sanand plant has enough acquired land to easily expand it.

However, Tata is already selling at a run-rate of 300,000 in the domestic market. A new 10,000/month product would need a 120,000/year production line and the issue is less about space and ability to spend and more about snagging available production lines for cheap.

I do agree with some of the members here. Ford's Sanand plant makes way more sense since Tata is right next door! Gujarat has pretty good transport infrastructure for auto exports (Western Dedicated Freight Corridor passes nearby to Sanand and will connected to electrified lines to Mundra).

Unless, Tata is getting the plant for cheap and is interested in gutting the plant to make it into an EV-only complex, something on the lines of what VW is doing to their Germany plants like Zwickau and Emden which moved from ICE to EV-only.
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Old 8th October 2021, 12:18   #32
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Default Re: Tata in the race to acquire Ford's Chennai plant

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Originally Posted by ajmat View Post
Why would Tata buy Fords Plant?

Arguments for
[list][*]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
It would be interesting to understand TMLs challenges with it's ancestral production facilities and labour in Maharashtra. Unionisation, QC etc. of what was predominantly a CV manufacturing workforce could be different from today's modern PV players.

Acquiring Ford's facilities and workforce might be the solution. Pretty sure former Ford India staff will be extremely happy and thankful to find a saviour.
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Old 8th October 2021, 13:10   #33
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Default Re: Tata in the race to acquire Ford's Chennai plant

From trying to sell the company's struggling passenger vehicle business back in 1999 to Ford who told them "Why did you start the passenger car division at all’. We will be doing you guys a favour by buying our car division.”

To buying JLR from them 9 years later and now their Indian plants. So who is doing the favour now??

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Old 8th October 2021, 13:24   #34
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Default Re: Tata in the race to acquire Ford's Chennai plant

This sounds like an emotional decision more than financial. Post chip shortage, wait times will come down for all Maruti and Hyundai cars and Tata should see a dip.
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Old 8th October 2021, 14:00   #35
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Default Re: Tata in the race to acquire Ford's Chennai plant

Ford's Sanand plant was a "complicated" offering by the then govt. A little was reported in the media too. Tata absolutely doesn't get into such complicated relationships.

They have Anurag Mehrotra to help "make do" with the Chennai plant. Tamil Nadu is a major automotive hub in itself & the Govt is known to offer very business friendly terms & even incentives, so supply chain issues would be virtually inexistent. Commissioning the plant itself could take 4+ months. Also, Tata isn't facing an immediate chip shortage, so they're only limited by their production capacity in the medium term.

Let's see.
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Old 8th October 2021, 14:10   #36
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Default Re: Tata in the race to acquire Ford's Chennai plant

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Originally Posted by AZT View Post
Post chip shortage, wait times will come down for all Maruti and Hyundai cars and Tata should see a dip.
I'm not sure Tata's gains are all due to chip related delivery issues for Maruti and Hyundai.

Speaking from personal experience, as we just acquired our 2nd Tata passenger vehicle in 2 years and Maruti and Hyundai were barely there in the reckoning as per their current offerings. The replaced vehicles were incidentally from the Maruti and Hyundai stables...
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Old 8th October 2021, 14:32   #37
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Default Re: Tata in the race to acquire Ford's Chennai plant

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Ford's Sanand plant was a "complicated" offering by the then govt. A little was reported in the media too. Tata absolutely doesn't get into such complicated relationships.

Let's see.
This still doesnt answer the question posted on the other Ford thread. Why did Ford go for a second plant in Guj when the TN plant was not fully utilized and they had no plans for new models.

I can understand them getting into some deal if they had the need to expand.
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Old 8th October 2021, 19:27   #38
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Default Re: Tata in the race to acquire Ford's Chennai plant

well to folks who feel Tatas should not be doing anyone a favor, I am sure favors are lined up the other way as well from the TN govt for Tatas to pick the plant. Of all the businesses in India, I have high regards for Tata and I am sure they are going to capitalize on this business opportunity as well.

PS: Just on the rumor of Tata meeting Stalin the Tata motors stock jumped up 20%. Weird world
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Old 8th October 2021, 21:13   #39
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Default Re: Tata in the race to acquire Ford's Chennai plant

TATA's thinking to take over Ford's both plants looks more like heart over head decision and also a matter of "in your face" reply for the episode happened in USA during 1999.

Nevertheless I am one happy shareholder of TATA😉.
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Old 9th October 2021, 05:40   #40
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Default Re: Tata in the race to acquire Ford's Chennai plant

TATA is everywhere. They brought Air India as well. I am very happy with this development.

https://www.ndtv.com/business/tata-w...ndtv_topscroll
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Old 9th October 2021, 07:41   #41
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Default Re: Tata in the race to acquire Ford's Chennai plant

A great move in my honest opinion and with the current government it's going to be easy to do business. Will be a great news for the employees. I really wish they don't lose their jobs.

It is an indication that they are up with some serious strategy as I have been believing. To me it seems like they have siezed the right opportunity. They just need a good leader to take the company forward.

Last edited by Jude300 : 9th October 2021 at 07:42.
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Old 9th October 2021, 19:56   #42
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Default Re: Tata in the race to acquire Ford's Chennai plant

On a different note, while we all can understand that Tata is looking to buy Fords Chennai and Sanand plants, just thinking out loud, how would it be if Tata at least gets the rights to Fords current engines being produced in India, especially the Petrol ones as current Tata NA Petrol engine is really a weak point. What tata would benefit is saving on crores for R&D for better future ready engines and Ford would have an even better selling proposition rather than this salvage act. The machines, tools, casts and even vendor network for these petrol engines are already established so there will be saving on this front too, maybe a win-win situation for all, or atleast a large group of stakeholders?
Yup royalty might be a matter here but hey! Ford at the moment is not in a commanding position here and Tata should squeze a deal here.
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Old 9th October 2021, 21:18   #43
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Default Re: Hero XPulse 200 4V launched in India at Rs. 1.28 lakh

Having a plant in the detroit of India has its merits. Good news for all Tata Motors shareholders.

What a dramatic turn of tables. I read somewhere that

Quote:
In 1999, Tata group wanted to sell its fledgling car business to Ford. Ratan Tata along with his team flew to Detroit and met the chairman of Ford, Bill Ford. In a meeting that lasted three hours, Ratan Tata was apparently meted out a humiliating treatment. Bill had apparently told them that they knew nothing about cars and they shouldn’t have started the car division. He even went as far as saying that Ford was doing Tata a favour by buying his car division.
In the next economic downturn (2008), Tata acquired JLR from Ford and now in the subsequent economic downturn, the Ford India itself.

Last edited by Thermodynamics : 9th October 2021 at 21:20.
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Old 10th October 2021, 00:33   #44
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Default Re: Tata in the race to acquire Ford's Chennai plant

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Originally Posted by ArTigor View Post
how would it be if Tata at least gets the rights to Fords current engines being produced in India, especially the Petrol ones as current Tata NA Petrol engine is really a weak point. What tata would benefit is saving on crores for R&D for better future ready engines and Ford would have an even better selling proposition rather than this salvage act. The machines, tools, casts and even vendor network for these petrol engines are already
No manufacturer in the world is looking at investing in new petrol engine tech. The world is moving to EV. Only the Japanese automobile makers are hesitant to move to EV because of massive job losses.
In India Tata is the one which is leading in EV sales and has more EV products in the pipeline, more then any other automobile makers plan in India.
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Old 10th October 2021, 09:34   #45
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Default Re: Tata in the race to acquire Ford's Chennai plant

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No manufacturer in the world is looking at investing in new petrol engine tech.
Agreed, thats where the point is, Tata has taken a huge leap in the EV R&D part, they have the EV tech and are coming up with a big facility for EV batteries, but their petrol lineup is weak. Now we all know that the focus in auto industry is eventually towards EVs but for another decade atleast it is the ICE which are still very relevant and given current trends its petrol thats more relevant. The current Tata petrol engines are weak point, due to power and refinement issues, right now it is okay as new designs are pulling off a show, but in a few years people will need smoother and slightly powerful engines. So here is the game, rather than investing in R&D for better engines, why cant Tata just look to procure the tech for Fords petrol engines and AT gear boxes. The Ford petrol engines are way better than Tata 3 cylinder units, and the ecosystem to produce these are well in place. Anyhow this is a distress sale from Ford, Tata can look forward to some more sweeteners.
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