Ford motor company, Automobile manufacturer

Chennai, Sep 17 The US automobile major Ford Motor Company that had announced the closure of manufacturing facilities in Tamil Nadu and in Gujarat owes about Rs 602.3 crore as deferred sales tax liability, as per a research report.Ford Motor Company's Indian manufacturing operation is carried out by its subsidiary Ford India Private Ltd with two manufacturing plants one at Chennai and Sanand in Gujarat.The Rs 13,520 crore revenueFord India set up its first plant near Chennai with Tamil Nadu offering tax incentives like sales tax waiver/ deferral.Similarly, the Gujarat government too offered tax incentives to Ford India when it decided to set up a plant in Sanand.A day before the Ganesh Chaturthi festival September 9 Ford India announced that it will wind down vehicle assembly in Sanand by the fourth quarter of 2021, and vehicle and engine manufacturing in Chennai by the second quarter of 2022.Ford India has four plants in the country vehicle and engine plants in Chennai and Sanand.Ford India has decided to continue operating the engine plant in Sanand while closing down the other three.In its report, credit rating agency India Ratings and Research last month said Ford India's unguaranteed external debt was largely in the form of a deferred sales tax liability of Rs.602.3 crore.Queried on payment of the dues to the governments and the timeline following the decision to close down the plants the company told : "We continue to work closely with the relevant governmental agencies in relation to the restructuring and are thankful to Governments in Tamil Nadu and Gujarat, as well as the Centre, for their support and understanding."According to India Ratings, Ford India has strong legal linkages with its ultimate parent, Ford Motor Company that has extended corporate guarantees to 85 per cent of the former's sanctioned working capital facilities at the end of FY21.The credit rating agency said it expects a major portion of Ford India's future external debt will continue to be backed by a guarantee from Ford Motor Company.Announcing its decision to shut down Indian plants, Ford Motor Company said it currently expects to record pre-tax special item charges of about $2.0 billion, including about $0.6 billion in 2021, about $1.2 billion in 2022 and the balance in subsequent years."Within that total will be about $0.3 billion of non-cash charges, including accelerated depreciation and amortization. The remaining cash charges of about $1.7 billion will be paid primarily in 2022 and are attributable to settlements and other payments," the company said.According to India Ratings, Ford group companies accounted for over 49 per cent of the sales volumes of Ford India, which exports to various countries on a cost-plus basis, during FY21Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Ford Motor CompanyFOLLOW

Ford motor company, Latest News

Ford Motor Company has planned to invest about Rs 3,250 crore in India as the company restarts its production,n ... ...

San Francisco, June 7 Ford Motor has issued a recall notice for over 1,25,000 Escape SUVs, Maverick pickups, ... ...

Chennai, June 22 With the US based Ford Motor Company deciding to shutdown its Maraimalainagar car plant near ... ...

Chennai, April 30 Former Tamil Nadu Chief Minister O. Panneerselvam on Saturday said the stoppage of production at ... ...

San Francisco, March 3 In its bid to catch up with Elon Musk-run Tesla, Ford Motor Company has ... ...

Chennai, Sep 24 With US auto major Ford Motor Company deciding to close down vehicle manufacturing in India, ... ...

Chennai, Sep 18 Even as their morale is down with job loss staring at their faces, workers at ... ...

Chennai, Sep 17 The US automobile major Ford Motor Company that had announced the closure of manufacturing facilities ... ...