Tata Mo­tors, VW may Ride To­gether

Talks at ad­vanced stage for shar­ing ve­hi­cle ar­chi­tec­ture & tech; de­tails of part­ner­ship be­ing worked out

The Economic Times - - Front Page -

Ke­tan Thakkar, Ruchika Chi­tra­van­shi & Sharmistha Mukher­jee

Mumbai | New Delhi: Tata Mo­tors, In­dia’s largest au­to­mo­bile com­pany by rev­enue, and Volk­swa­gen Group, Europe’s largest car maker by vol­ume, are said to be at an ad­vanced stage of fi­nal­is­ing a part­ner­ship that can have a wide-rang­ing im­pact on In­dia and other emerg­ing mar­kets.

The con­tours of the part­ner­ship, on whether it will be a joint ven­ture or a tech­nol­ogy tie-up, are still be­ing worked out, said five peo­ple with knowl­edge of the mat­ter. They told ET that ne­go­ti­a­tions are mak­ing progress and could cul­mi­nate in an an­nounce­ment at the Geneva In­ter­na­tional Mo­tor Show in March.

Shar­ing ve­hi­cle ar­chi­tec­ture His­tory of Part­ner­ships

Tata En­gi­neer­ing and PSA Peu­geot Citroen ex­plore joint pro­duc­tion of pas­sen­ger car

TaMo and Fiat ink part­ner­ship for man­u­fac­tur­ing and dis­tri­bu­tion

TaMo ac­quires Jaguar Land Rover

TaMo ex­plores tie-up with VW for A-seg­ment car; Pixel and Up dis­cussed

JLR en­ters into JV with Ch­ery Au­to­mo­biles to en­ter China

TaMo ex­plores tie-up with Ch­ery for shar­ing en­gines & plat­forms

and tech­nol­ogy is at the heart of the dis­cus­sion, said one of the per­sons. The com­pa­nies are look­ing at shar­ing mod­u­lar plat­forms for In­dia and emerg­ing mar­kets, in­clud­ing the ad­vanced mod­u­lar

TaMo be­gins talks with PSA Group for en­gine and plat­form part­ner­ship

Talks with Fiat Chrysler for sourc­ing 2-litre diesel en­gines for Q5 pro­ject

TaMo in talks with VW for plat­form shar­ing

plat­form (AMP) be­ing de­vel­oped by Tata Mo­tors. Volk­swa­gen may of­fer tech­ni­cal knowhow on pro­duc­ing mul­ti­ple mod­els based on mod­u­lar ar­chi­tec­ture. The two com­pa­nies are also ex­plor­ing whether Volk­swa­gen’s MQB A0 plat­form can be used by Tata Mo­tors, said the peo­ple cited above.

“The idea is sim­ple, to share ar­chi­tec­tures and ca­pac­i­ties and bring in quicker re­turns on in­vest­ment through economies of scale,” said the per­son cited above. “Both the com­pa­nies are stretched fi­nan­cially, yet they have no way out but to in­vest for the fu­ture, so part­ner­ship was the only way out.”

Tata Mo­tors has been held aloft by its Jaguar Land Rover unit with the do­mes­tic car busi­ness do­ing poorly. Turn­ing it around is a key fo­cus for chief ex­ec­u­tive of­fi­cer Guenter Butschek, who is said to have a good equa­tion with se­nior Volk­swa­gen ex­ec­u­tives.

Both com­pa­nies de­clined to com­ment.

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