Tata Motors and FCA are planning to strengthen their ties beyond sharing technologies like engine, transmission and components of vehicle platforms.

Jeep Compass
Tata Q501 and Jeep Compass to share the 2.0-litre diesel engine

Tata Motors and Fiat Chrysler are deciding to strengthen their ties for local manufacturing in India. Both the players will be sharing technologies like engines, transmissions, etc. They will also be making some components of vehicles platforms together.

This sharing of technology between FCA and Tata Motors will helps the carmakers build volumes and bring the costs down simultaneously. FCA will be manufacturing the new Jeep Compass locally in their Ranjangaon facility followed by a smaller B Jeep to compete in the mass market segment.

Fiat Chrysler is further planning to share the engines and transmissions from the same facility to reduce the costs. Fiat and Tata have been discussing to share the new 2.0-litre diesel engine that will be powering the Jeep Compass as well as the all-new SUV from Tata codenamed Q501.

Once this agreement gets finalised, both the manufacturers will be able to price their future products attractively and get big volumes together. FCA is considering to introduce the B Jeep with an aggressive pricing of sub Rs. 10 lakhs that will compete in the sub 4-metre compact SUV segment.

For now, FCA’s main focus is on the latest Jeep Compass. The RHD Jeep Compass will be made only in the Ranjangaon facility out of the four facilities across the globe. It is expected to be priced between Rs. 14 lakhs to Rs. 24 lakhs.

The new Jeep Compass will help take Fiat Chrysler’s annual sales beyond 2 million units from the current 1.23 million globally. On the other hand, Tata Motors is working on their new premium SUV, which is essentially the Safari Storme successor that will compete with the Mahindra XUV500.

Tata Q501, Jeep Compass To Share Diesel Engine

– Tata Motors and FCA planning to strengthen ties
– Both the companies will share engines, transmissions and components
– The agreement will help them reduce the production costs
– The Jeep Compass and Tata Q501 SUV will share the 2.0-litre diesel engine

2015 Jeep Renegade Side
The new B Jeep will be smaller than the Jeep Renegade

Source – ETAuto.com