Volkswagen and Tata officially announce collaboration image

After quick rumors about the world’s largest automaker – Volkswagen – and a leading Indian carmaker – Tata – entering an agreement, the two companies have recently announced the official start of their collaboration.

VW and Tata Motors have signed a memorandum of understanding (MoU), which should provide “long-term strategic cooperation in clearly-defined fields.” The partnership was cosigned by Matthias Müller, CEO of Volkswagen AG, Bernhard Maier, CEO of Skoda, and Günther Butschek, CEO and Managing Director of Tata Motors. For the VW Group, the leading company will be the Czech manufacturer and they will hit areas such as “the application of specific market knowledge as well as local development expertise” in the beginning, followed by hopes they can “further expand its product portfolio in the fast-growing markets.”

Volkswagen has been struggling for some time now to introduce an entry-level brand that would sit below the Skoda and Seat units in the portfolio of the world’s largest automotive manufacturing group. Gaining access to Tata’s new Advanced Modular Platform (AMP) would be a great start towards achieving the goal of coming up with very low costs. For Tata the partnership will mean access to new technologies, developed by Volkswagen and the other brands from VAG. “We are delighted to announce our potential cooperation with Volkswagen Group and Skoda,” Günter Butschek commented as well.