VW Group’s Joint Venture With Tata Motors Officially Collapsed

VW Group and Tata Motors have ended talks about a joint venture for the development of a car targeted at emerging markets.

VW Group had commissioned Skoda to lead the negotiations with Tata back in March, when the two companies announced the signing of a Memorandum of Understanding (MoU) regarding a long-term partnership.

“Both companies have concluded that at present, neither the technical nor the economic synergies are achievable to the extent desired by both parties. As a result, a planned strategic alliance will no longer be pursued for the time being,” Skoda said in its statement.

“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 Chief Executive Guenter Butschek.

The original plan was to further develop Tata’s AMP platform but Skoda reportedly dropped the idea of doing so, fearing such action would require significant further investment in order to meet future crash-test and emissions standards. Skoda will explore further savings in VW Group’s MQB platform instead, according to an inside source, Reuters reports.

This is the second time VW sees its efforts for a cheap model fail, following the unsuccessful alliance with Suzuki back in 2011.

PHOTO GALLERY

  • Miknik

    So does this mean the world’s cheapest car will come with the latest cheat software as well? Good news 😉

    • roy

      Actually no one bus that car So it is going to die I guess

  • hAZE

    VW is trying to take a share in indian market. First they tried with Suzuki/Maruti, didn`t work out, now same thing with Tata. Maybe the problem is VW?

  • Carmelo Van Cabboi

    Fosever alone

  • sidewaysspin

    Everyone makes temporary alliances with the VW Group just to get at their technology, which sometimes they can’t handle it themselves anyway.

  • Chris C

    Good news – the VW experience with Proton and Suzuki showed that any JV’s are only for VW’s benefit. Maybe Tata should look closer to China or the UK or Sweden.

  • psiqtas

    Mama wasn’t happy about dieselgate smoke?

Lamborghini Aventador SVJ Covers 1/4 Mile In 10.59s, Pulls A Wheelie

All-wheel drive or not, the SVJ can lift its front wheels of the tarmac when it launches from a standstill.

This 1984 Chrysler LeBaron Once Did 224 MPH – And Right Now It’s Dirt Cheap

The former stock car made the Guiness Book of Records, yet the highest bid right now stands at a mere $7k.

Purple Pain: McLaren 600LT With Flashy Wrap Hurts Our Eyes

We don’t think that hue really suits the 600LT’s design, but as the saying goes, you pays your money…

Wheelsandmore Turns New Aston Martin Vantage Into 671HP Bruiser

Thanks to the German tuner, the baby Aston becomes almost as powerful as the DBS Superleggera.

Virginia Officials Say The Boring Company Tunnels Are All Show, So No-Go

According to them, Elon Musk’s company might be decades away from actually offering a new transportation means.

Mansory’s Mercedes-AMG S63 Cabriolet Is One Minty Tuned Car

This S63 Cabriolet was presented at the Geneva Motor Show alongside Mansory’s other tuned cars.

Check Out Aston Martin’s AM-RB 003 Concept As A Production-Ready Roadster

In reality, the Aston Martin AM-003 will have a limited run of 500 units, all of the Coupes.

Consumer Reports: 2019 Hyundai Tucson Is Better, But Still Needs Some Improvements

The biggest change for Hyundai’s Tucson is the 2.4L naturally-aspirated four in place of the 1.6L Turbo.

Drug Lord’s Car Collection Auctioned By US Marshals Is Filled With JDM Goodness

The auction includes a blue 1999 Nissan Skyline R34 GTR and an Acura NSX.

Elon Musk Emails All Tesla Employees Asking Them To Prioritize Vehicle Deliveries

Tesla is going on a delivery spree before the end of Q1 2019.