The Volkswagen Group is experiencing a turbulent periodThe world's second largest car manufacturer has bet its future on mass electrification and it seems that the "gamble" has not worked out very well for them. Especially because they have jumped and not taken into account other transitional options to go from selling internal combustion vehicles to top-level electric vehicles. And now they find themselves as they are, looking for "money" everywhere to cover all the holes they have...
One of the options that is on the table is the factory closures in Germany. It would be the first time this would happen in his home country since the end of World War II. But beyond this alternative there are other options with which he could also regain some financial muscle. In recent days we have learned that Mahindra would be happy to acquire a significant stake in Skoda Auto IndiaDo you know what reasons there would be behind…?
Mahindra seeks technology partners to enhance its market position…
If you do a little memory you will remember that Mahindra and Volkswagen Group signed an agreement to collaborate in several areas. Then we got a surprise because we never imagined that the Germans would look towards India or at least ally with a local manufacturer. Shortly after, both companies announced that the agreement was going to be extended because the Germans had the opportunity to sell the MEB platform to the Indians.
Be that as it may, it is true that Mahindra needs a “little” push to improve its operationsThe manufacturer is part of a large industrial conglomerate in its country but is still in the shadow of Tata Motors. However, The largest car manufacturer is Maruti-Suzuki Mahindra's plans go further with the aim of beating two giants in the sector. In short, with a partner with better technology, they can grow more.
And what better than to approach the Volkswagen Group. Today the German consortium is present in the Asian country thanks to the fact that Skoda is an actor that has made an impression on the public thanks to its attractive design models and fair price in terms of what its cars offer. In addition, It has the latest platforms and technology such as the development of the MQB-A0-In.Base platform already used by models such as the Skoda Slavia or the Kushaq SUV.
If the Volkswagen Group gives Mahindra this platform, its models will improve exponentially. By using this base, its models will come close to those of Tata Motors not only in quality but also in efficiency. Especially now that Electrification is already in order and it is costing the IndiansWe are not referring to money, which they have plenty of, but rather to the fact that the state of the art is not yet mature and their engineers do not seem to be up to date…
And the Volkswagen Group, through Skoda Auto India, needs more money while reducing its costs…
Considering the situation and following the saying "When the waters are troubled, the fishermen profit." Yes, because Mahindra and its engineers would gain in know-how regarding the electrification and quality of their models. On the other hand, it is already known that the German group needs money to cover its "financial gaps" and that Skoda Auto India would be an asset that they could “sacrifice” to make some cash. In fact, this would be the Indians' proposal to them.
According to several sources, Mahindra reportedly interested in acquiring 50% stake in Skoda Auto IndiaNegotiations are currently underway and there are several red lines. The Indians apparently do not want less than 50% and the Germans are said to be reluctant. The financial amount would be around one billion euros. which would really be good for the Germans given their critical situation.
However, it is said that Mahindra's contribution would not be exclusively economic. They have a lower cost platform than the MQB-A0-In and it is the New Flexible Architecture (NFA) to be used in cars developed by Skoda for the country. In this way, they would further reduce their costs with the possibility of using engines developed by themselves to distance themselves from those of their local partner. All of this under Mahindra production, which would be cheaper.
We will have to wait and see how the negotiations go, but everything points to the fact that The Volkswagen Group would eventually give in to the offer. That said, will it be advantageous for Mahindra or will it be a trap purchase…
Source - Indian coach
Images | Mahindra – Skoda
More information about this model
- Plazas 5
- Power 95 - 150 hp
- Consumption 5,5 - 5,9l/100km
- Assessment 4,4