Mercedes may end its pact with Tata Motors

Mercedes-BenzAs the year 2010 ends, the world may also witness the end of the half-a-century old agreement between the German carmaker Mercedes-Benz and the home-grown auto major, Tata Motors.

It is to be mentioned here that the German automaker has the paint shop tie-up with Tata Motors and the company may end this relationship soon by erecting its own shop.

The MD & CEO of Mercedes-Benz Wilfried Aulbur recently said that the company is looking at developing its own paint shop and the option is being discussed with the management globally. While the company is still looking at the financial viability of the project, it is believed that the paint shop will come up at Mercedes' brand new factory at Chakan in the outskirts of Pune.

The company has been using the paint shop at Tata Motors' Pune facilities since it began operating in India but perhaps it is time for Mercedes-Benz to say bye-bye to the home-grown giant.

The Tata Motors spokesman confirmed that the agreement with Mercedes ends in December but said that the final decision on renewing it will be taken in due course of time and hence it is not feasible to comment on it currently.