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Skoda says ‘NO’ to strategic partnership with Tata Motors

Parichay Malvankar
Written by Parichay Malvankar

Founded in 1985, brand Skoda, which is currently a part of the Volkswagen group was rumoured to be in talks of getting into an alliance with Tata Motors. However, Skoda has denied any possibility of such a strategic partnership going through at the moment, but there is still a chance of things moving ahead in the future.

Both brands have been in talks to get technical understanding and feasibility studies of benefiting from this alliance.

Tata Motors needs a top brand under their wing so that they benefit in terms of technical expertise to develop world class cars. Skoda & Tata had signed a MOU at the Geneva Motor Show to explore synergies.

The ŠKODA brand has assessed and evaluated a potential strategic collaboration with Tata Motors Ltd over recent weeks and months. In doing so, both companies have concluded that at present, neither the technical nor the economic synergies are achievable to the extent desired by both parties. As a result, a planned strategic alliance will no longer be pursued for the time being. Both companies would like to emphasise that following the intensive and constructive discussions of the last few months, they are not ruling out possible future collaborations.

About the author

Parichay Malvankar

Parichay Malvankar

Founder, owner and editor-in-chief of www.Shifting-Gears.com; a born gearhead, nothing apart from a set of wheels gets his pulse racing.