Tata - FCA to strengthen ties for sharing technology

Fiat Chrysler Automobiles is planning to strengthen its partnership with Tata Motors in order to enhance technology and engine and transmission sharing between the two companies. These efforts are a part of FCA's plans to extract volumes from the recently introduced Jeep brand in the country. To achieve this, FCA is looking out for maximizing the levels of localization for upcoming Jeep models in order to price them competitively. A strengthened partnership with Tata might help FCA to achieve this goal.

People closer to the developments have reportedly indicated that FCA and Tata might share a new 2.0-litre diesel engine in the near future. This new engine will be used in the Jeep Compass or another new Jeep offering and a new premium SUV from Tata Motors, which has been internally codenamed the Q5.

Global head of Fiat, Mike Manley, has also shown his inclination towards a partnership between the two companies for sharing engine, gearbox and vehicle platform components to bring the prices down and thus build volumes in developing markets like India. FCA has already announced that the Ranjangaon facility will be one of the four manufacturing hubs for the upcoming Jeep Compass, which is scheduled to be launched in India in the second half of 2017.

Source: ET Auto