[manishkapadia]

Tata Motors and VW are in advanced talks for partnership for sharing modular platforms and technology for Emerging markets.

Source ET.

http://economictimes.indiatimes.com/...w/57280511.cms

Will this be one more Tata Motors partnership that eventually fails ?

[CoolFire]

Unlike in the case of earlier ones, this one intends to work in the background and may actually work. Sharing of platforms, engines and technology without front-end integration makes sense for both. Fiat JV failed because customers were confused with the different brands sharing showroom and service facilities while having very few technical integration.

Tata can do well with Volkswagen's engines and modular platform expertise. VW could benefit from Tata's manufacturing scale once the new models roll out successfully. Tata can also contribute in bigger vehicles, especially if they leverage LR know how effectively.

[arjab]

VW needs this collaboration more than TML. Remember, platform costs are almost 60% of a vehicle's developmental costs. And from what the canaries sing: talks had been on for close to a year w.r.t. the same subject between the two OEM's.

If one takes a very objective view, the going has been pretty rough for VW over the last year or so. It's reputation as a car maker has been severely tarnished due to the emissions cheating scandal.

In its traditional markets of Western Europe and United States, VW is certainly not being viewed with the same degree of credibility as before. Heck; they even had to drop the "Das Auto" from their global advertisement tagline.

In India the story is worse. With an ageing product line and tepid sales, VW's India operations are under tremendous pressure.
The AMEO project's monthly sales targets are way off the mark. They can't even bring in the MQB, as it will necessitate the setting up of a new line which will suck huge amounts of funds.
The bean counters at Germany are extremely reluctant to part with fresh capital to facilitate a new line of India specific products unless commensurate sales revenue can be guaranteed. The genteel folks at VW India are quaking in their booties for such commitments.
Then: Competition. Traditional European competitor's; such as Renault etc are way ahead in the volumes stakes. PSA is about to move in too. It can be a hit or miss but it will not be very prudent for VW to rule the Gaul out.

So, poor VW in India is really in a bind. Thus the approach to TML to share the Advanced Modular Platform or AMP - which again is very similar to VW's MQB architecture. However Indian engineering ingenuity has developed it at a much lesser cost much to VW's consternation and amazement.

The TML AMP is package protected for all crash norms. It also has the ability to support conventional, electric or hybrid architectures. In fact, a few reliable birdies tweet that VW was mightily impressed when TML had showcased the AMP to them. That the AMP can support a plethora of models - from hatches to sedans to SUV's to MUV's, was another enticement to VW.

On the styling front, one can be sure that the upper bodies for both marques will have their own signature styling cues.
On the retail front too, VW will definitely be positioned as a "premium" marque and TML will faithfully stick to their "more car per car" positioning.

One more important thing: handling the inter-cultural niceties to prevent or reduce to a minimum unending engineering decision making sloth, build-up of ego etc.
In fact, these intangibles, (of course, there were many other technical aspects too), played a considerable part & were responsible for Suzuki's inability to make its venture work with VW.
TML should fare better. They have a history of handling the Germans well and have considerable experience working with them on the engineering front. Plus the present MD is from their ilk, hence the probability of meeting of minds is more than falling out over decisions!

This will be an interesting development for the Indian automotive industry. Let's await the formal announcement / press release! TML once saved JLR, who knows they might bring in a breath of fresh air to VW India too!

[Beerus]

The amarock which was standing at the b.u bhandari - VW workshop, Wakad, which I documented here: http://www.team-bhp.com/forum/techni...ml#post4114918

was sent to the Tata factory for technology exchange. This is what my service advisor told me. So the things are already rolling.

[volkman10]

Latest from the rumored TATA- VW alliance,

Possibility of using the Tata's AMP for VW's new car for ASEAN markets OR whether TATA will do contract manufacturing OR VW using the TATA platform with royalty paid by VW.





L I N K

[volkman10]

In talks with VW for partnership: Tata Motors

Explaining the rationale behind such a move, Butschek said although the company has set sights on becoming among the top three passenger vehicle makers in India by 2019, it might not be enough to get the scale up effects.

Even if we get a large scale in the national business we might still not be up to the mark as far as scale effects are concerned,"Therefore, we are, since a while, have been having intensive talks with different potential partners, who might join us on the AMP," It is aimed at bringing additional volumes through the new platform that the company will introduce to the market by 2018.

These additional volumes will bring higher economies of scale, which is going to give us the cost advantage and competitiveness

If this is finally going to end up in a development JV or production JV or sharing of capacity contract manufacturing agreement, these are all subject for further discussion in order to make it a win-win for both the parties

link

[RavenAvi]

Tata Motors and Volkswagen have officially signed a Memorandum of Understanding (MoU) earlier today.

This will mutually benefit both companies to work together and develop a new range of products which will be shared by Tata, Volkswagen and Skoda brands.

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.

"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.

VW was initially skeptical of Tata's 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 crash worthiness.

The Tata- VW alliance will also look at sharing of components and technologies. For example, Tata 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 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.

ACI

[RSR]

Hearty congratulations to Tata for developing a cost-effective modular platform!

It looks like Volkswagen have been quite impressed with Tata's AMP that they've decided to utilise this platform for future Škodas and Volkswagens in India (at least the ones priced below 15 lacs).

It's a massive leap for Tata! From still selling cars that were launched a long, long time ago (Sumo, Indica, Indigo) to getting the world's largest (or is it 2nd largest?) car company to share a new modular platform they've developed is no mean feat at all.

Even if Škoda and Volkswagen build different "top hats" on Tata's AMP with different interiors and their own powertrains, Tata would receive a sizeable royalty/licence fee from VAG for using this platform.

In effect, Tata would be making money on every VW & Škoda sold in India and possibly exported (that uses their AMP). They seem to have learned the art of making money from other manufacturers' cars from their old partner Fiat.

[volkman10]

Tata Motors signs Memorandum of Understanding (MoU) with Volkswagen Group and Skoda for exploring Joint Development projects. Skoda Auto will lead this development for vehicles in the economy segment.

-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

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 & MD of Tata Motors, Matthias Mueller, CEO of Volkswagen AG and Bernhard Maier, CEO of Skoda Auto.

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, Guenter Butschek, CEO and Managing Director, Tata Motors, 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", Matthias Müller, CEO of Volkswagen AG, 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.

L I N K

[volkman10]

Here is the press release from Volkswagen, Wolfsburg - Germany.

- Long-term partnership on Indian sub-continent envisaged

- Goal: joint development projects to expand product portfolio

-ŠKODA to lead project for Volkswagen Group brands

- Project delivers on core initiative of “TOGETHER – Strategy 2025”

For the Volkswagen Group, the signing of the MoU with Tata Motors Ltd. marks a further trailblazing step in the context of “TOGETHER – Strategy 2025”. Under the terms of the memorandum, the Volkswagen Group and Tata Motors will explore possibilities for a strategic partnership in India

The first step will address topics such as the application of specific market knowledge as well as 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 contractual framework and the guidelines for a strategic cooperation between the Volkswagen Group and Tata Motors Ltd. will be examined and defined in detail over the coming months. Until then, the parties have agreed not to disclose any information.

[chncar]

"FutuReady"

Just when we though 'Phygital' was the most stupid word that they could come up with. What's with Tata motors and stupid branding efforts these days?

[altius]

This is interesting. VW is a industry pioneer in modular platforms (MQB), while Tata's platform is unproven and Tata cars are generally not known for great quality at least till recently. Their newer cars seems better built but it is too early to tell. So obviously Tata will gain in terms of VW's platform, engine and electrical technologies which is good for them. If lower costs are the main benefit for VW, I wonder how it is going to work out for them. While Indian customers will be perfectly happy with lower priced VW/Skoda's, they surely will expect german build quality, handling, features and performance out them. Toyota learnt the hard way by launching Etios. This may have long term implications for VW brand. My view is that VW should stop trying to compete with Maruti and try to create and occupy a niche (affordable premium and sporty german cars) between the mass market and premium car brands.

[theexperthand]

Originally Posted by altius

This is interesting. VW is a industry pioneer in modular platforms (MQB), while Tata's platform is unproven and Tata cars are generally not known for great quality at least till recently.

Only if you could have spent time to read few posts in this thread itself:

VW was initially skeptical of Tata's 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 crash worthiness.

It will be VW who will be gaining in terms of Tata's platform while I expect the build quality of VW and Skoda to remain the same and Tata to gain from the electrical architecture of VW and hopefully the famed German build quality too.

--Anoop

[Sac]

Yes, the top hat, power train and connectivity will be the differentiating and unique factors while the platform and electrical architecture will be shared. Win win I guess.

[newtonMeter]

this means we can use VCDS on the tata cars too yeah!