Photo: edited by autoevolution
Not regarding the aftermath of the Dieselgate scandal, which will affect the Volkswagen Group’s coffer for years to come, the biggest automaker in the world never really got itself established in emerging markets. In a bid to turn things around, Tata accepted to explore a strategic alliance with VW for joint development projects, with Skoda assigned to lead the project.
The rumor mill was flooded with reports about Volkswagen seeking a well-versed partner in the matter of emerging markets, but now VW has let the cat out of the back with this announcement. The memorandum signed by the two automotive behemoths paves the way for technology exchanges between the two outfits, including the sharing of platforms and other bits.
The partnership “will enable us to offer customer-oriented mobility solutions in the emerging, fast-growing automobile markets, as elsewhere,” said big kahuna Matthias Muller. “By offering the appropriate products we intend to achieve sustainable and profitable growth in very different parts of the world. That is why we are systematically pursuing our regional growth strategy.” In layman’s terms, Volkswagen’s head honcho really needs Tata’s expertise.
As we wait for the contractual framework and guidelines to be completed, the world’s most powerful automaker let it slip that Skoda will work to see this partnership turn to fruition. In the company’s own words, Volkswagen “delegated project responsibility” to the Czech marque. “Together with Tata we will be specifying the concrete opportunities for collaboration over the coming months,” declared Bernhard Maier, Skoda chief executive officer.
Industry experts are expecting the first vehicles to roll out in 2019, maybe 2020, with an emphasis on the entry-level segment. When you think about it, Volkswagen said that it would produce such a car ever since Renault-owned Dacia proved that low-cost doesn’t necessarily mean low quality. From a decaying outfit to a European market share of 2.8% in the year 2016, Renault was right to grow the Dacia marque around the cheap and cheerful formula.
Experts also suggest that Volkswagen is poised with its plan to debut a budget brand in the near future, positioned below its Skoda and SEAT divisions. And if Volkswagen gets its hands on Tata’s AMP (Advanced Modular Platform), VW would save millions on development costs. The latest rumors on the subject imply that VW will launch the budget brand in 2019.
The partnership “will enable us to offer customer-oriented mobility solutions in the emerging, fast-growing automobile markets, as elsewhere,” said big kahuna Matthias Muller. “By offering the appropriate products we intend to achieve sustainable and profitable growth in very different parts of the world. That is why we are systematically pursuing our regional growth strategy.” In layman’s terms, Volkswagen’s head honcho really needs Tata’s expertise.
As we wait for the contractual framework and guidelines to be completed, the world’s most powerful automaker let it slip that Skoda will work to see this partnership turn to fruition. In the company’s own words, Volkswagen “delegated project responsibility” to the Czech marque. “Together with Tata we will be specifying the concrete opportunities for collaboration over the coming months,” declared Bernhard Maier, Skoda chief executive officer.
Industry experts are expecting the first vehicles to roll out in 2019, maybe 2020, with an emphasis on the entry-level segment. When you think about it, Volkswagen said that it would produce such a car ever since Renault-owned Dacia proved that low-cost doesn’t necessarily mean low quality. From a decaying outfit to a European market share of 2.8% in the year 2016, Renault was right to grow the Dacia marque around the cheap and cheerful formula.
Experts also suggest that Volkswagen is poised with its plan to debut a budget brand in the near future, positioned below its Skoda and SEAT divisions. And if Volkswagen gets its hands on Tata’s AMP (Advanced Modular Platform), VW would save millions on development costs. The latest rumors on the subject imply that VW will launch the budget brand in 2019.
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