"A joint team would be set up by the two companies to determine the feasibility and specificity of the nature of cooperation, both in the short and long-term. If found feasible, the two companies will enter into definitive agreements in the course of the coming months," Tata Motors said.
Tata Motors to make Fiat Palio in Pune
Tata group chairman Ratan Tata said both the companies would benefit from the alliance in terms of possible joint product development, shared platforms and aggregates.
"We are delighted to be in dialogue with the Fiat group on the range of possibilities between the two corporations. Fiat is a globally respected corporation, with a long-standing presence in automobiles," he said in a statement.
Tatas, Fiat close to mega global alliance
Commenting on the MoU, Fiat CEO Sergio Marchionne said, "The possible strategic cooperative agreement with Tata group represents another step in our clearly defined strategy that calls for targeted alliances across the automobile value chain.
"It is consistent with successful ventures established with premier partners, including PSA Peugeot Citroen and Suzuki, and the recently announced signing of an MoU with Ford Motors."