July 18, 2018

VW Group, Tata end talks on emerging markets tie-up

12 August 2017, 12:50 | Joann Bryant

Tata Motors and Skoda Auto's Potential Partnership Talks Fail

Tata Motors, Volkswagen's Skoda Auto to call off proposed alliance

"Both groups have come to the conclusion that at this stage, technical and economic synergies would not be achieved under the desired conditions", said Skoda, the Czech subsidiary of VW, which was tasked for negotiations.

India's Tata Motors and Skoda Auto, part of Germany's Volkswagen Group, have called off talks of a partnership that would have involved sharing manufacturing facilities and vehicle platforms. If the plan materialised, it would have given Skoda access to Tata's AMP modular platform and the first auto to be built on the platform was expected to be rolled out in 2019.

Skoda engineers, the magazine reported, had convinced the top management that with such an investment, it's possible to develop and localise the VW Group's MQB-A platform.

The Wolfsburg giant does not, however, exclude future cooperation after the "intensive and constructive discussions" of recent months. "As a result, a planned strategic alliance will no longer be pursued for the time being, " the spokesperson added.

The announcement to call off the proposed agreement comes amid mounting losses in Tata Motors' India operations and efforts to turn around the business by Butschek.

In 2009 VW attempted to break into the low-priced vehicle market in India by forging a tie-up with Suzuki Motor Corp but the deal failed due to cultural and business differences and was ended in 2015 following a fierce legal dispute.

"We have evaluated the technical feasibility and degree of synergies for the envisioned partnership", Tata chief executive Guenter Butscheck said.

The German group is looking for new overseas markets as it struggles to draw a line under its emissions scandal. Talks included the joint development of vehicle components and concept cars.

VW and Skoda have made a decision to explore VW's MQB platform for possible further synergies, the source said.

Other News

Trending Now

Trump touts power of USA nuclear arsenal amid N
In his tweets , Rubio also defended Trump's immigration proposal but also urged the President to impose additional sanctions on Venezuelan President Nicolas Maduro.

World's oldest man, a Holocaust survivor in Israel, dies at 113
Usually in Jewish faith, when Jewish boys become 13 years old, they become accountable for their actions and become a bar mitzvah. Yisrael Kristal, the world's oldest man and a Holocaust survivor, died Friday, Aug. 11, 2017, in Israel, according to BBC News.

White House's West Wing getting a makeover
President Donald Trump says he's planning a press conference Monday in Washington- though it's unclear what he plans to discuss. The White House has been plagued with issues including ceiling leaks and a house-fly infestation, according to CNN.

Trump aide says Tillerson's role is diplomatic, not military
GORKA: Absolutely, absolutely but there's a secretary of defense and there's a secretary of state. If America initiated a first strike, North Korea could still retaliate by destroying a USA city.

Saints drop preseason opener in Cleveland
Kizer and fellow rookie QB Mitchell Trubisky were the stars of Thursday night's opening slate of preseason games . For those that wanted Thursday night to end with a quarterback debate, Kizer made sure that you've got one now.

The Trump administration is having secret talks with North Korea
At a minimum, Pyongyang would renew its long-standing demands for an end to joint U.S. On Thursday, the President said his message may not have been "tough enough".

Australia | Challenge filed in court to gay marriage ballot
If we have to vote, let us vote no to gay marriage for the sake of Australia, our children and our children's children. A postal vote on same-sex marriage is expected next month. "It has no place in any debate in our country", he said.

Trump to Guam's Governor: 'Don't Worry About a Thing'
Family has been on Aflague's mind lately, especially those still living on the USA island territory about 6,664 miles away. The plan calls for missiles to be fired into the sea about 40 kilometres from the coast of Guam.

Petroleo Brasileiro SA- Petro (PBR) Stake Decreased by Dimensional Fund Advisors Lp
BP PLC bought a new position in shares of Petroleo Brasileiro S.A. - Petrobras during the first quarter worth about $14,644,000. The stock of Wal-Mart Stores Inc (NYSE:WMT) has "Underperform" rating given on Tuesday, May 3 by RBC Capital Markets.

Female Business Leaders Rally Against "Bathroom Bill"
House lawmakers approved the amendment in an 89-48 vote, before tentatively approving SB 5 by a 90-37 margin. Huberty has not brought Taylor's Senate Bill 16, on the school finance commission, up for a hearing .