Tata Motors - Volkswagen sign MoU to explore collaboration

Tata Motors and Volkswagen have signed a Memorandum of Understanding (MoU) during the ongoing Geneva Motor Show in Switzerland. Under this MoU, the two automotive companies will be exploring the possibility and feasibility of working together to develop products for growing markets. These products will then be shared under the Tata, Volkswagen and Skoda brands. Though product development by the two automakers is still a distant future, the said MoU will allow both companies to share more information with each other and thus engage in wider and detailed discussions.

The two companies have reportedly been in talks for platform sharing for over a year. Volkswagen initially wanted the two firms to jointly develop its MQB-A platform. However, this architecture proved to be expensive, which wouldn't make sense in a price-sensitive market like ours. Meanwhile, Tata wanted to work on its upcoming Advance Modular Platform (AMP), though the VW group was a bit sceptical about it. However, when the AMP architecture was tested by an independent German engineering firm - EDAG, it was reportedly impressed with the platform's structural rigidity, after which, Volkswagen decided to go ahead with it.

The two companies are also looking into the possibility of sharing components to increase their respective product reliabilities while minimizing the development cost. While Tata is expected to use Volkswagen's electrical architecture, the German carmaker would likely borrow engine setups from Tata.

Source: Autocar Professional