Tata Motors & Volkswagen Sign MoU For Joint Cooperation


Thread Starter #1
Joined
Jan 28, 2013
Messages
2,478
Likes
2,970
Location
MH46/AP28-TS07/TN14
Now its been reported on one of the indian car portals that VW are thinking of making Tata build them a low cost car.

Will this be good or bad move? Will this ever happen in first place? Only time will tell.

Right now it seems to be all speculation, but if this is indeed true, then there are some signs I can think of:
1. tata motors are indeed getting the thumbs up for their developmental effort from one of the leading automotive company in the world.
2. Tata may be jeopardising thier own cars, Tiago and nano. Nano is not yet up there in the charts and suddenly there is a competitor being built.
3. VW will now be able to sell cars in large numbers.

Tata Motors and Volkswagen could end up making a small car | Latest Car News & Live Updates at OnCars.in
 
Joined
Jul 23, 2013
Messages
333
Likes
269
Location
KL-01
Re: Rumour: Tata to build low cost car for VW?

I don't think Tata Motors should do this. Firstly, TML is still trying hard to regain its No 3 slot in Indian market. Why should they dig their own grave by offering help to VW? Even it's difficult to believe that a global giant like VW will take TML help for bringing smaller cars. My assumption, if there is a VW plan to bring a low cost car for India and if they are taking help from TML then it would be for sharing the production plant like what FIAT used to do some time back. I understand that VW can roughly make 200,000 cars per annum from its current facilities. If they have to bring smaller cars, the numbers will go up and may be VW HQ might be against sprucing up the current production facilities.
 
Joined
Jun 26, 2015
Messages
1,096
Likes
1,350
Location
Bathinda-Delhi
Re: Rumour: Tata to build low cost car for VW?

I don't think Tata Motors should do this. Firstly, TML is still trying hard to regain its No 3 slot in Indian market. Why should they dig their own grave by offering help to VW? Even it's difficult to believe that a global giant like VW will take TML help for bringing smaller cars. My assumption, if there is a VW plan to bring a low cost car for India and if they are taking help from TML then it would be for sharing the production plant like what FIAT used to do some time back. I understand that VW can roughly make 200,000 cars per annum from its current facilities. If they have to bring smaller cars, the numbers will go up and may be VW HQ might be against sprucing up the current production facilities.
yes am sure they might be thinking of platform sharing as VW donot have low cost platform and platform development cost is very high. And even by doing this its easy for Tata to achieve no 3 spot as they will get more return on platform cost thus they can design more and more cars and even engines as well.

even as you said VW need not to invest for new plant and Tata can produce cars for them and the underutilised plants of Tata will make full use of vacant machinery.
 
Last edited:
Joined
Dec 27, 2012
Messages
1,038
Likes
619
Location
KA 20
Re: Rumour: Tata to build low cost car for VW?

Cant verify how true this news is. But if therz any happening, then I hope TATA bargain hard. say for that DSG in return :stupid:
 
Joined
Oct 30, 2013
Messages
245
Likes
110
Location
Bangalore
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

loose loose for both. more for vw

vw is in premium segment.
tata is in value segment.
 
Joined
Apr 11, 2011
Messages
3,039
Likes
2,132
Location
()
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

Tata Motors, Volkswagen partnership may announce a partnership shortly.
The JV partnership of technology sharing is not yet known.

The two companies are also exploring whether Volkswagen’s MQB A0 platform can be used by Tata Motors, said the people cited above.

The companies are looking at sharing modular platforms for India and emerging markets, including the advanced modular platform (AMP) being developed by Tata Motors. Volkswagen may offer technical knowhow on producing multiple models based on modular architecture.

The two companies are also exploring whether Volkswagen’s MQB A0 platform can be used by Tata Motors.

TataJV
 
Thread Starter #8
Joined
Jan 28, 2013
Messages
2,478
Likes
2,970
Location
MH46/AP28-TS07/TN14
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

Well so the rabbit is out of the hat. Tata and volkwagen are truly signing partnership. This news I welcome wholeheartedly. Not only are the two manufacturers known to build strong and robust cars but also desirable ones (yes even Tata in the recent years)

hope to see a "Tatawagen" blazing the roads.
 
Joined
Apr 14, 2016
Messages
75
Likes
43
Location
Yamuna Nagar
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

This step of VW is the proof of VW budget brand in India is coming for sure. A win win situation for Tata motors who can use their factories at full capacity.
 
Joined
Apr 11, 2011
Messages
3,039
Likes
2,132
Location
()
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

Tata Motors, Volkswagen in partnership talks: confirms TATA's CEO Guenter Butschek.

Although Tata Motors is aiming to become one of the top three passenger vehicle makers in India by 2019, the company by itself may not be able to achieve significant reduction in costs through higher sales volumes admits Butschek.
Therefore, we, since a while, have been having intensive talks with different potential partners, who might join us on the AMP
The Indian company is exploring various options, including a partnership for the development of its new advanced modular platform (AMP), a joint venture or a contract manufacturing agreement with the German automaker, in its bid to achieve economies of scale that will help cut costs

An alliance with the German carmaker will give Tata Motors access to advanced technology and reduce development and production costs for both partners
 
Joined
Apr 11, 2011
Messages
3,039
Likes
2,132
Location
()
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

Tata Motors and VW Group sign MoU for joint cooperation
Alliance to cover platform sharing and joint sourcing for Tata, VW and Skoda products.

The MoU was signed by Guenter Butschek, managing director of Tata Motors and Matthias Muller, CEO of the VW Group, in Geneva. An official announcement is likely to be made on March 10.

It's too early to tell how the Tata-VW alliance will pan out and the specific models that will be built on the common platform. For Tata Motors, the partnership means massive economies of scale and a way to defray the huge costs of developing the AMP platform. For VW and Skoda, a tie-up with Tata holds the only hope of making a dent in the Indian market. The German automaker's high-cost structure and huge gaps in its product portfolio have effectively rendered it noncompetitive in India
The bigger issues revolve around the strong cultural differences between Tata and VW that could derail the potential partnership. VW had a falling out with Suzuki Motor Co for similar reasons but this time round, the German auto giant, humbled by Dieselgate – its emissions-fixing controversy – may be more amenable to partnerships.

http://www.autocarindia.com/auto-news/exclusive-tata-motors-and-vw-group-sign-mou-for-joint-cooperation-404400.aspxlink
 
Last edited:
Joined
Sep 22, 2014
Messages
538
Likes
589
Location
m'bai, lko, kolkata
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

One hopes that TM has bargained really hard in this deal. VW has been taking major financial & sales hits (Indian sales are insignificant) in the past couple of years (from Sep '15) ever since the emissionsgate/dieselgate scandal broke in the US, and the US EPA regulatory body began twisting VW tail ferociously. It is safe to infer that VW needs TM a good deal more than vice versa. And TM can add to their already bulging R&D portfolio (after the JLR take-over) from this new venture.
 
Joined
Dec 27, 2012
Messages
1,038
Likes
619
Location
KA 20
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

TATA should bargain hard and make sure they get DSG as deal sweetner. [;)]
 
Joined
Jan 25, 2013
Messages
1,523
Likes
1,531
Location
Hyderabad
Tata Motors and Volkswagen Group ink MoU for joint cooperation

Tata Motors and the Volkswagen (VW) Group signed a Memorandum of Understanding (MoU) on Wednesday, exploring the possibility of working together to develop a new range of products to be shared by the Tata, Volkswagen and Skoda brands. The MoU was signed by Guenter Butschek, managing director of Tata Motors and Matthias Muller, CEO of the Volkswagen Group, in Geneva. An official announcement is likely to be made on March 10. "This MoU will allow us to have a wider range of discussions and exchange more information and data to understand the synergies that exist between our two companies," said a person close to the development who asked not to be identified. The two companies have been negotiating the structure of the partnership for over a year now. Autocar India, sister magazine of Autocar Professional, had reported this in its October 2016 issue. The VW Group was initially pushing for the joint development of the German automaker's MQB-A platform but that was working out to be too expensive for a price-sensitive market such as India. Tata Motors was keen that the coalition use its future Advanced Modular Platform (AMP) that has a distinct cost advantage and a flexible architecture to spawn a wide range of products. VW was initially sceptical of Tata Motors' AMP platform but gave it the thumbs up after it was independently evaluated by EDAG, a German engineering firm. EDAG is believed to be hugely impressed with AMP, especially in areas of structural rigidity and crashworthiness.

Components and tech sharing on the cards
The Tata-VW alliance will also look at sharing of components and technologies. For example, Tata Motors is keen to use VW's electrical architecture in its AMP products; this is understood to be far superior to Tata's own electrical system and is cost effective to boot. Tata will take the lead on engine development as VW's powertrains, which have a low level of localisation, are proving to be too expensive, especially for the Indian market.

It's too early to tell how the Tata-VW alliance will pan out and the specific models that will be built on the common platform. For Tata Motors, the partnership means massive economies of scale and a way to defray the huge costs of developing the AMP platform. For VW and Skoda, a tie-up with Tata holds the only hope of making a dent in the Indian market. The German automaker's high-cost structure and huge gaps in its product portfolio have effectively rendered it uncompetitive in India.
The bigger issues revolve around the strong cultural differences between Tata and VW that could derail the potential partnership. VW had a falling out with Suzuki Motor Co for similar reasons but this time round, the German auto giant, humbled by Dieselgate – its emissions-fixing controversy – may be more amenable to partnerships. Several VW executives say the company is determined to make this one work.
- See more at: Tata Motors and Volkswagen Group ink MoU for joint cooperation
 
Joined
Sep 22, 2014
Messages
538
Likes
589
Location
m'bai, lko, kolkata
Re: Rumour: Tata To Build Low-Cost Car For Volkswagen?

One hopes that TM has bargained really hard in this deal. VW has been taking major financial & sales hits (Indian sales are insignificant) in the past couple of years (from Sep '15) ever since the emissionsgate/dieselgate scandal broke in the US, and the US EPA regulatory body began twisting VW tail ferociously. It is safe to infer that VW needs TM a good deal more than vice versa. And TM can add to their already bulging R&D portfolio (after the JLR take-over) from this new venture.
A small foot-note to the above: ......."And TM can add to their already bulging R&D portfolio - after the JLR take-over - from this new venture, tho' obviously, not the notorious "cheat" technology VW used to fool the EPA testing equipment![:D]
 

Top Bottom