Tata Motors on Wednesday, November 14, put a full stop to all speculations that the Indian car maker is in talks with the France based manufacturer of automobiles PSA Peugeot Citroen. Talking about it, Tata spokesman Debasis Ray told Reuters, “That is absolutely incorrect.” Apart from Tata spokesman who denied the report, Peugeot spokesman said, "We are still not commenting on the countless rumours about the group."
Earlier, Peugeot and General Motors, in order to cut costs, were planning to share production units and together develop new car models in Europe. However, owing to Peugeot's ailing financial condition it was almost clear that the alliance with General Motors would not work. Then reports came in that the French auto maker is in talks with Tata Motors to form an alliance. This news even resulted in an increase of 3.3 per cent in the share price of Peugeot.
Earlier in 2008, Tata had acquired the British auto maker Jaguar-Land Rover; therefore, it was expected that Tata might acquire Peugeot and save it from the financial crises. However, now that Tata has denied the reports, it has brought an end to all such rumours.
