Volkswagen: shares up slightly after Tata alliance.
(CercleFinance.com) - Volkswagen shares are slightly up in Frankfurt today after the German automaker signed a memorandum of understanding with India's Tata to explore a "long-term strategic cooperation.
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In VW's own words, the goal of the strategic alliance is to bundle the expertise of both car manufacturers with a view to jointly developing vehicle components and possibly also vehicle concepts.
The Skoda brand is to lead the project.
Clearly, the plan consists of developing a new platform that is entirely dedicated to budget cars.
"For VW this represents the company's latest attempt at developing an emerging market product," Bernstein reacted today.
"The plan seems to be a joint platform underpinning cars for the Skoda and Tata brands, starting in 2019," the brokerage firm adds.
VW shares are currently up 0.8% at 142.4 euros.
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