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Automotive Product Finder Magazine | Tata Motors splits PV and CV business for strategic alliances
Tata Motors splits PV and CV business for strategic alliances
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Tata Motors Limited (TML), a leading automaker in India has decided to subsidersise TML’s passenger vehicle (PV) business including the electric vehicle (EV) by transferring relevant assets, IPs and employees directly relatable to the PV business for it to be fully functional on a standalone basis through a slump sale. The TML Board has in-principle approved this decision.
Though some shared services and significant functions will be retained at TML to deliver cost efficiencies for the entire group. The proposed transfer is supposed to be implemented through a scheme of arrangement, which will be tabled for approval to the TML Board over the next few weeks.
Implementation of the scheme will be subject to regulatory and statutory approvals as applicable, including approval of shareholders and creditors. It is expected that the transfer process will be completed by the next year.
The recent outbreak of COVID-19 virus increases the challenges faced by the business. In this situation our first priority is to secure the health and safety of our people while continuing to serve our customers and securing the viability of our ecosystem. Additionally, in sync with our strategy to ‘Win Sustainably’ we will take decisive steps to strengthen our business over the long-term. A move towards subsidiarisation of the PV business is the first step in securing mutually beneficial strategic alliances that provide access to products, architectures, powertrains, new age technologies and capital.
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