In efforts to explore long-term strategic cooperation in clearly-defined fields, Matthias Muller, CEO of Volkswagen AG, Bernhard Maier, CEO of Skoda Auto and Gunther Butschek, CEO and Managing Director of Tata Motors Ltd., have signed a memorandum of understanding (MoU). The agreement will offer a bundle the expertise to both car manufacturers with a view to jointly developing vehicle components and also help with vehicle concepts.
Skoda Auto will be leading the project and the first step in this regard will be to address topics such as the application of specific market knowledge as well as gain local development expertise. In the long term, the Volkswagen Group is looking to further expand its product portfolio in the fast-growing emerging markets. The move will help Volkswagen to develop cars on Tata’s cost effective platform, while Tata Motors stands a chance to benefit from Volkswagen group technological expertise.
As for now, the contractual framework and the guidelines for a strategic cooperation between the two companies will be examined and defined in detail over the coming months. Speaking about the partnership Gunter Butschek, CEO and Managing Director of Tata Motors Ltd., 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.”
Matthias Muller, CEO of Volkswagen AG, commented, “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.” Additionally, Bernhard Maier, CEO of Skoda Auto, stated, “We are looking forward to the joint project with Tata Motors. Delegating project responsibility to Skoda 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.”
