Tata Motors buys Ford India manufacturing plant for $91 million According to Reuters

© Reuters. FILE PHOTO: Tata Motors logos are pictured outside their flagship showroom in Mumbai May 28, 2013. Photo taken May 28, 2013. REUTERS / Vivek Prakash

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

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

“With our production capacity near saturation, this acquisition is timely and benefits all stakeholders,” Tata Motors said in a statement.

Parent company Jaguar Land Rover said the acquisition of the Sanand plant would open up production capacity of 300,000 units per year and could be increased to 420,000 units.

Ford, which had less than 2% of the passenger car market in India when it stopped production in the country last year, has struggled for more than two decades to turn a profit.

(1 dollar = 79,3600 Indian rupees)

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