From Stalin to Sanand: Ford takeover by Tatas stokes 'speculation'

This comes at a time when even after three months since announcement of winding-up of operations, Ford India could not reach a settlement with unions regarding a severance package for 4,000 employees

Yet another round of meeting between Tata Motors and Tamil Nadu Chief Minister (CM) M K Stalin on Wednesday and a team of ‘visitors’ at Ford India manufacturing unit in Sanand on Sunday have raised speculations of a possible takeover of Ford units by Tata Group.

This comes at a time when even after three months since the announcement of the winding-up of operations, Ford India could not reach a settlement with the unions regarding a severance package for around 4,000 employees at both units.

A senior Ford India executive said the company’s priority is on preserving jobs and the company is in talks with multiple players. “Talks on severance package will take some time and discussions are on with unions,” he clarified.

It was on September 9 that Ford had announced the closure of its manufacturing units at Maraimalai Nagar in Tamil Nadu and Sanand in Gujarat.

On Wednesday, Tata Motors’ Executive Director Girish Wagh met Stalin. This was the third meeting between the CM and a top Tata Group executive since the closure of the Ford unit.

On October 7, Tata Group Chairman N Chandrasekaran had met the CM. A spokesperson for Tata Motors refused to comment on the development, dismissing the Ford India talks as ‘market speculation’. 

The talks also led to speculations that Tata Group may consider some parts of the Ford land for its $300-million semiconductor assembly and test unit, which was also denied by the company.

Tata Motors also had plans to set up a driving motor training school in the state.

At Sanand, Ford had visitors on Sunday, with many speculating them to be from Tata Motors. “The visitors were shown around the plant, but we could not ascertain which company they had come from. We have been demanding that union workers and other permanent workers be retained on a priority basis, but we haven’t heard anything from the management on the sell-out yet,” said a union worker at Ford’s Sanand plant.

The Sanand plant has around 2,500 permanent workers, including nearly 900 union workers, mostly on the shop floor. The workers are currently engaged in manufacturing spare parts for Ford cars, apart from engines.

“The engine plant will not shut down. However, the deadline for the car plant has been extended to March 2022 for manufacturing spare parts used for replacement under warranty,” the worker added.

On the other hand, Chennai Ford Employees Union President Suresh S said the workers have not agreed to any settlement on the severance package. “We are asking the management to bring in some players, so that maximum jobs can be saved,” he said.  

Last year, Ford was in talks with companies like Ola and Mahindra & Mahindra for contract manufacturing or for the sale of both factories, the failure of which led to the closure announcement.