VW group’s Czech subsidiary Skodasaid Thursday the two carmakers had come to the conclusion that the strategic alliance would not be able to achieve “the technical and economic synergies in the desired way.” Deutsche Welle reports.
But the Czech carmaker, which was commissioned by its parent VW group to lead the talks, did not rule out the possibility for future cooperation with the Indian rival after the “intensive and constructive talks” in past months.
Tata Motors Chief Executive Günter Butschek – a German automotive and aerospace industry veteran who joined the Indian company last year – said: “We have evaluated the technical feasibility and degree of synergies for the envisioned partnership. We have concluded that the strategic benefits for both parties are below the threshold levels.”
The collapse of the talks foils a VW effort to develop a cheap vehicle platform for Asian markets, after an earlier alliance with Japan’s Suzuki also fell apart.