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VW, Tata cooperation talks ended amicably: Source

further blow to Volkswagen's efforts to develop a cheap vehicle platform for Asian markets

Reuters  |  Frankfurt 

tata, volkswagen

talks between Germany's Group and about joint development of a car for emerging markets have ended amicably, a Group source said on Thursday.

The collapse of the talks is a further blow to Volkswagen's efforts to develop a cheap vehicle platform for Asian markets, after an earlier alliance with Japanese partner Suzuki also fell apart.

was not immediately available for comment.

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

Volkswagen's entry-level brand has been commissioned by VW to lead the talks with and was exploring a possible entry-level car platform together with the Indian manufacturer, using Tata's vehicle platform as a basis.

Volkswagen's division dropped the idea of developing the platform on fears that it would need significant further investment to meet future crash-test and emissions requirements said the source, who declined to be named.

"VW-have decided to drop the idea of partnering with and and instead explore VW's own MQB platform for possible further synergies," the source said.

to declined comment.

did not immediately respond to a request for comment.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, August 10 2017. 16:11 IST
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