End of Skoda-Tata alliance
Czech manufacturer Skoda and Indian carmaker Tata Motors have announced that they have put an end to their strategic alliance, initially set up to develop a low cost vehicle for the Indian market. The companies blame a failure to achieve planned cost savings for this decision.
Skoda has released a statement saying: ‘Skoda Auto 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 emphasize that following the intensive and constructive discussions of the last few months, they are not ruling out possible future collaborations.’
Tata issued a statement with an almost identical message.