@volklub VW dominated 20-30L segment a decade before with passat,Jetta and tiguan
Now finding a local partner to sell in that segment is worrysome
I wish for customers to experience global cars from some other brand
JSW all set to buy Volkswagen's India business: Deal almost done, reports Bloomberg!
Fan boys may hate me for this, but this is probably the best thing that happened to VW!
Some history: VW has been trying to bring in a partner for its India business for years, even before their 2.0 strategy.
In 2017, they tried to tie up with Tata. Didn't work out. VW then came up with 2.0 strategy, and Tata did Omega ARC and ALFA.
In 2018, Gurpartap Boparai came in and did a merger. VW became SAVWIPL.
Then VW and M&M tried to get into a partnership. Even that was called off, and the Born Electrics happened.
Will VW get lucky the third time? Quite likely. JSW has the money. JSW has the 'contacts'. VW needs the money. VW needs the contacts. Remember the customs case?
But why now? VW is in BIG trouble at Europe. The Chinese are literally taking over the market. 50 % workers to be fired, factories to be shut and 50 % car models to be axed.
It's a matter of survival for VW, and for this, Wolfsburg has to downsize, and get leaner. So, every business apart from the core business will either be shut down or sold off. Which is what's happening.
JSW putting money into VW means VW can develop new cars, for India and the world, in India.
Just last week, Klaus Zellmer, chief of global Skoda said that he sees India emerging as a global production hub. How will this fit into that? Not sure!
As for JSW, Sajjan Jindal, multiple times has said, they will not be junior partners. This means full control (majority stake). JSW already runs MG, and will soon bring new energy vehicles from Chery.
Will taking over VW's India business give them more than just factories? There's a big development center in Pune. Time will tell. For now, I'm not sure what JSW gets from this deal that the Chinese can't give!
@CarToq
https://t.co/phfNWR2u7y
@r3dash@markgurman Last time when they gave a press release, India region CEO resigned and went to China the next week πstill no new CEO assigned. It is too obvious.