Tata Denies Alliance Talks with PSA

Tata Motors Ltd. says a news report claiming the company is engaged in tie-up discussions with PSA Peugeot Citroen is "absolutely incorrect."

PSA says it won't comment on the "countless rumors" about its plans.

Germany's Manager Magazin cites unidentified PSA sources who say the company is seeking an alternative partner in case its planned alliance with General Motors Corp. falls apart.

Tata would benefit from the French carmaker's engine technology, according to the magazine. It says PSA could gain from Tata's expertise with no-frills models and perhaps obtain a badly needed cash infusion.

Reuters reported earlier this week that GM and PSA have shelved talks about deepening their partnership beyond shared purchasing and product development.