Tata Motors and Skoda partnership called off


Nearly five months after announcing a long-term partnership where Skoda was supposed to lead on behalf of Volkswagen Group, the companies have decided to part ways.

Based on intense and constructive discussions, both the companies have jointly concluded that the envisioned areas of partnership may not yield the desired synergies as originally assessed. Nevertheless, the two companies have decided to keep in touch for future areas of collaborations, said the official statement.

Commenting on the development, Guenter Butschek, CEO and MD, Tata Motors, 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. However, we remain positive of exploring future opportunities with the Volkswagen group, given the relationship of mutual respect that we witnessed during the phase of our cooperation discussions.”

The partnership was intended to develop products for both Indian and overseas market, in the economy segment.

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