VW and Tata strike deal
VW and Tata will form a partnership to help both companies increase car sales in India and emerging markets.
Both VW and Tata Motors, which is India’s largest vehicle company and owns Jaguar Land Rover, are looking to grow volumes in developing markets and the memorandum of understanding is hoped will lead to Tata Motors launching new vehicles by 2019.
Guenter Butschek, chief executive and managing director, Tata Motors, has put in place a restructuring programme to help build up Tata’s lost sales for passenger and commercial vehicles by improving efficiencies, cutting production delays and building economies of scale.
He said, ‘We strongly believe that both the companies, by working together, can leverage from each other’s strengths to create synergies and develop smart innovative solutions for the Indian and overseas market.’
Matthias Müller, chief executive of Volkswagen AG, said, ‘By offering the appropriate products, we intend to achieve sustainable and profitable growth in very different parts of the world.’
VW’s Skoda unit will lead the project to develop components and vehicles.