VW in Talks with Tata on Joint Vehicle Programs

Volkswagen AG is in advanced negotiations with Tata Motors Ltd. about jointly developing inexpensive cars for emerging markets, sources tell Bloomberg News. They say the companies could announce a deal in two weeks at the Geneva auto show.

VW has been struggling for many years to develop such vehicles on its own. Its most recent collaborative effort, a disastrous equity linkup with Suzuki Motors Corp., collapsed in 2105 over cultural differences.

VW acknowledges it is exploring ways to develop “tailor-made solutions” in India. A partnership with Tata would enable the company to tap Tata’s expertise in low-cost products and help Tata develop upmarket models.