It is believed that the carmaker is in talks with at least one global automotive company for the sale of its Sanand plant. The negotiations are reportedly being handled by Ford’s Asia-Pacific headquarters in Shanghai. However, a Ford spokesperson has rejected these rumours.
The negotiations for the potential sale are being handled directly by Ford’s Asia- Pacific headquarters in Shanghai, the people said. They did not name the companies Ford is in talks with or say when the discussions are expected to conclude.
“The Sanand plant is a more than feasible option for any existing or new original equipment manufacturer looking for setting up capacity, as it is a very modern facility and close to the port. Hence, the logistics cost can also be reined in,” a source from Ford told Livemint. “It is very difficult to predict the final outcome at this level since these kinds of transactions take a long time.”
Selling off its production plant will help the company continue in the market without having huge financial liabilities like owning and maintaining huge assets like a manufacturing facility. Recently, it was even reported by a financial news daily that the carmaker could sell off the Sanand-based production facility in Gujarat, which currently has an annual capacity of 2.7 lakh engines and 2.4 lakh vehicles. The manufacturing facility in Gujarat was setup in 2015 with an investment of roughly 1 billion US dollars. The production plant is situated at a strategic location near a port, which allows easy logistics.