The Volkswagen Group and Tata have ended talks for joint development of a car model for emerging markets, according to a Reuters report. Skoda was the brand commissioned by Volkswagen to lead discussions with Tata for a possible entry-level car vehicle architecture using Tata’s AMP platform as a basis, a VW Group source told the news wire.
“The two companies have come to the conclusion that at the present point of time the technical and economic synergies cannot be realised in the desired way,” said a statement by Skoda. “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,” said Tata Motors CEO Guenter Butschek.
This, however, did not rule out possible future collaborations between the two automotive groups. This is not the first time the German automotive giant tried to make inroads into the Indian market; a 2009 tie-up with Suzuki failed due to cultural and business differences, and ended in 2015 after legal dispute.
It’s said that discussions with Tata stalled due to the prohibitive cost of developing the AMP architecture rather than any differences in control in the vein of the failed Suzuki deal.
“We haven’t been able yet to claim a share of the booming business with cheap small cars and Tata means another setback in that respect, but Volkswagen has changed a lot structurally since the Suzuki debacle, so we’ll keep trying,” a senior Volkswagen manager told Reuters. The German group has been looking for new growth markets, certainly in the wake of its long-running and very costly Dieselgate emissions scandal.
Looking to sell your car? Sell it with Carro.
VW, Suzuki, Tata all competitors in same market segments, how to pakat pakat together? When no synergy, pakat sure fail.
Tata also dont want vw dsg…… Tata titi tuu vw…..