Mumbai, Sept. 22
TATA Motors announced on Thursday that it was signing a memorandum of understanding (MoU) with Fiat S.p.A to "analyse the feasibility of cooperation, across markets, in the area of passenger cars that would encompass development, manufacturing, sourcing and distribution of products, aggregates and components."
According an official statement, following the MoU, a joint team will be set up by the two companies to determine the feasibility and specificity of the nature of cooperation, both in the short and long term. "If found feasible, the two companies will enter into definitive agreements in the course of the coming months," it said.
"We are delighted to be in dialogue with the Fiat Group on the range of possibilities between the two corporations. Fiat is a globally respected corporation with a long-standing presence in automobiles. Both companies will benefit from this alliance in terms of possible joint product development, shared platforms and aggregates," Mr Ratan Tata, Chairman, Tata Group, has said. "The possible strategic cooperation agreement with Tata Group represents another step in our clearly defined strategy that calls for targeted alliances across the automobile value chain. It is consistent with successful ventures established with premier partners, including PSA Peugeot Citroen and Suzuki, and the recently announced signing of an MoU with Ford Motor Co," Mr Sergio Marchionne, CEO, Fiat S.p.A has said.
Shares of Tata Motors ended down at Rs 499.90 on the BSE from the previous close of Rs 517.65.