VW, Tata Motors Call Off Partnership Plans as Savings Fall Short
- Constructive talks could still lead to cooperation later
- VW has sought cooperation deal since unwinding Suzuki tie-up
Attendees look at a Tata Motors Ltd. Zica hatchback car on display at the Auto Expo 2016 in Noida, Uttar Pradesh, India, on Thursday, Feb. 4, 2016. Tata Motors said it will rename the Zica, derived from “Zippy Car,” citing the outbreak of the Zika virus.
Photographer: Prashanth Vishwanathan/BloombergThis article is for subscribers only.
Volkswagen AG and Tata Motors Ltd. called off plans to team up in India after five months, marking the German automaker’s second failure to secure a partner for budget cars.
The anticipated cost savings and technical synergies from a tie-up fell short of expectations, the Indian carmaker and Volkswagen’s Skoda unit, which was leading the talks, said Thursday. While there’s no deal for now, the companies said they could revive cooperation efforts in the future if the conditions arise.