Ford Motor Co F is in talks with Indian automaker Tata Motors Limited TTM to sell its manufacturing assets there, The Times of India reported on Friday, citing multiple sources.
What Happened: Ford has announced plans to exit operations in India and phase out its plants on the western coast in Gujarat and another one in the southern Indian state Tamil Nadu.
Ford is in discussions to sell both these assets in India to Tata Motors, as per TOI.
See Also: Ford's India Exit Worries Dealers Of Legal Action From Customers
Ford would shut down the Gujarat manufacturing facility by the fourth quarter and the one in Tamil Nadu will be shut by the second quarter of 2022.
Why It Matters: Ford announced plans to exit India as it was losing money running its operations in the country. The deal if it goes ahead, will be the second time around that Tata Motors is buying an asset from Ford. Tata Motors had in 2008 bought loss-making Jaguar Land Rover from Ford and then turned it around.
Price Action: TTM shares closed 15.3% higher at $25.75 on Thursday.
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