VW-Tata alliance likely to be called off

VW was to invest Rs 1,000 cr, now sceptical about cost advantage

The alliance between Tata Motors and Volkswagen (VW) group is likely to be called off. 

The companies had signed a memorandum of understanding in March to develop a common platform to manufacture bespoke products. It was agreed that Tata's platform would be used as the common platform since it offered cost advantage over VW's. Cars based on this platform were expected to roll out from 2019. But, VW is now sceptical about the cost advantage of Tata's platform, said sources. 

VW was to invest Rs 1,000 crore in the platform. 

Tata and VW said, “We are in the phase of evaluating the potential