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Volkswagen and Tata Motors end talks on car partnership

Posted: August 10, 2017 at 7:57 pm   /   by   /   comments (0)

Cooperation talks between the German car giant and the Indian market leader about joint development of a car for emerging markets have ended ‘amicably’ because the pair couldn’t achieve planned cost savings.

VW group’s Czech subsidiary Skoda said Thursday the two carmakers had come to the conclusion that the strategic alliance would not be able to achieve “the technical and economic synergies in the desired way.”

But the Czech carmaker, which was commissioned by its parent VW group to lead the talks, did not rule out the possibility for future cooperation with the Indian rival after the “intensive and constructive talks” in past months.

Tata Motors Chief Executive Günter Butschek – a German automotive and aerospace industry veteran who joined the Indian company last year – said: “We have evaluated the technical feasibility and degree of synergies for the envisioned partnership. We have concluded that the strategic benefits for both parties are below the threshold levels.”

The collapse of the talks foils a VW effort to develop a cheap vehicle platform for Asian markets, after an earlier alliance with Japan’s Suzuki also fell apart.

In March, Tata Motors and VW announced a Memorandum of Understanding (MoU) for a long-term partnership to explore joint development of products for customers in India and other markets.




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