Earlier News was Tata Motors and Skoda plans to work together.
The major automobile company Tata Motors said on Thursday that it has terminated its talks with Volkswagen Group’s automobile company Skoda for proposed participation. The company says that due to pragmatic issues, Company has taken this step. The company had announced a deal about it four months ago.
According to the company, the joint technical feasibility study found that potential strategic advantage for both parties is lower than expected level. However, it has kept the doors open for any alliances with the Volkswagen Group in the future.
Tata Motors CEO and Managing Director Gunter Bushchek said in a statement: “We have studied the level of technical feasibility and synergy for the proposed alliance. Our conclusion is that strategic advantage for both parties will be less than a minimum level.
However, he also said that we are positive about examining opportunities in future with Volkswagen Group. Both the companies have decided to stay in touch with the prospects of cooperation. Tata Motors, Volkswagen Group and Skoda announced a long-term alliance in March this year. Vehicles were to be built jointly under this alliance and the first vehicle could be introduced in 2019.