March 10, 2017
Tata Motors signs MoU with Volkswagen Group and Skoda for exploring joint development projects
- Explore long-term partnership for joint development projects
- To develop innovative solutions for Indian and overseas market
- Evaluate combined value chain activities to create synergies
- Partnership to help Tata Motors become ‘FutuReady’ by embracing new technologies
- Škoda to lead project for Volkswagen Group brands
Mumbai: Tata Motors today announced the signing of a memorandum of understanding (MoU) for a long-term partnership with Volkswagen Group and Skoda, to explore strategic alliance opportunity for joint development of products. The agreement has been signed by Guenter Butschek, CEO and MD of Tata Motors; Matthias Müller, CEO of Volkswagen AG; and Bernhard Maier, CEO of Skoda Auto.
|From left: Bernhard Maier, CEO of Škoda Auto; Matthias Müller, CEO of Volkswagen AG; and Günter Butschek, CEO and MD of Tata Motors|
The document lays down the scope and objectives in order to reach agreement on the modalities and terms of a long-term cooperation in identified areas of partnership. Skoda Auto will take the lead on behalf of the Volkswagen Group to drive forward work towards development of vehicle concepts in the economy segment.
Announcing this strategic alliance opportunity, Mr Butschek, said, “We are delighted to announce our potential cooperation with Volkswagen Group and Skoda. 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. This is in alignment with Tata Motors’ efforts to make itself ‘FutuReady’ by embracing new technologies, fostering higher platform efficiency and offering solutions that connect with the aspirations of our customers."
“Our aim with the envisaged strategic partnership with Tata Motors is to lay the foundations in the Group and the brands that will enable us to offer customer-oriented mobility solutions in the emerging, fast-growing automobile markets, as elsewhere. By offering the appropriate products, we intend to achieve sustainable and profitable growth in very different parts of the world. That is why we are systematically pursuing our regional growth strategy”, Mr Müller commented.
“We are looking forward to the joint project with Tata Motors. Delegating project responsibility to Škoda underscores the great confidence of the Volkswagen Group in the ability of our brand. Together with Tata we will be specifying the concrete opportunities for collaboration over the coming months”, Bernhard Maier, CEO of Škoda Auto, stated.
Tata Motors and Skoda Auto, representing the Volkswagen Group, will detail out the guiding principles and terms of cooperation in the next few months. Post successful completion of definitive agreements, the two companies will start joint development work and joint value-chain activities. Based on this joint work, Tata Motors plans to launch products in the Indian market, starting calendar year 2019.