According to the latest rumor off the mill, Matthias Müller, CEO of the Volkswagen Group, and Guenter Butschek, managing director of Tata Motors, have inked a memorandum of understanding on the sidelines of the Geneva Motor Show.
The official news might come as early as Friday and the new partnership has been designed to allow both Volkswagen and Skoda to increase its impact on the important Indian market. The deal has been in the making for more than a year, reportedly, with Volkswagen’s MQB-A platform getting the most likely share bid but then changing the strategy to Tata’s own Advanced Modular Platform (AMP) that would be used to deliver a new product range part of the new alliance.
Tata will also be the one delivering the engine development part, as VW Group’s own powertrains have been deemed too costly – with the Indian partner looking instead to bring forth the electric technology of the German automaker. The vehicles will be exclusively targeting the Indian market, with VW and Skoda looking to finally crack the notoriously difficult market for foreign producers. In addition, Tata will start saving money on developing its own platform with the help of the German specialists, which bring the experience accumulated as the world’s reigning carmaker.