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Company operated/managed FIAT Exclusive Service Centers

Discussion in 'Fiat India News' started by nk4FIAT, Jul 18, 2011.

  1. nk4FIAT

    nk4FIAT Superiore

    Hi TFIans,
    As the number of FIATs are increasing, number of Tata cars are also increasing manifold. FIAT is opening Brand Stores in major metro cities, this will also yield to more population of FIATs on Indian roads. Advertisement in media is also happening bit consistently. A small FIAT exclusively designed for India and upgraded Palio/Uno/Bravo are on the way. Very shortly the servicing facilities at existing dealers/service centers will not suffice for Tata cars itself (overcrowded) and they may not accommodate FIATs. There will be always tendency to give first preference to Tata cars over FIAT. Again FIAT owners will start facing problems of service and spares. FIAT always miss the bus then waits indefinitely for next. ( They will not run to catch the same) Again next time find some excuse to miss the second. Before it actually happens, I strongly feel this is the high time for FIAT to open new "Company operated/managed FIAT Exclusive Service Centers" across all major cities of India (apart from existing Tata-Fiat showrooms). Overall image of FIAT in Indian buyers was "FIAT only sells and Forget" but that is now changing considerably. Pathetic service has become quite good. Even today we see many Uno, old Palio on road in good condition whose owners are dying to get good spares and service. This move will show a long term commitment from FIAT for customers and a sure & reliable service center for their FIATs. I am having following scope of work about the service center. Please give a thought and discuss..

    i) This will be the exclusive FIAT service center for Uno, Palio(old), Palio Stile, Linea & Punto. ( Since database of all the spares OEMs for Uno/Palio(old) is available with FIAT, they can easily asked them to manufacture spares in limited quantity)

    ii) If the most affected/hit customers group (Uno/Palio), gets all major spare available in affordable cost and get their cars serviced by FIAT specialists, I think it will be a major scene changing move for FIAT. Because I feel most of the FIAT users don't want to buy other car until and unless he gets horrific experience of worst maintenance and no availability of spares. Even with this pathetic experience more than 40% Uno/Palio customers have bought Punto/Linea.(including me) If this group gets a committed service for their old FIATs defiantly 90% owners will think of again buying/switching to new FIATs. This will increase resale value of FIAT and average customer will also start considering FIAT as an option.

    iii) All spares should available as ready stock or maximum 5 days downtime.

    iv) They should have tie up with all major insurance companies and quickly settle accidental claims. Also they may have insurance renew center (or call basis) for Future Generalli or similar.

    v) Cost of the spares, Servicing charges should be strictly on 10-15% profit margin by FIAT.

    vi) It should have a complete facility to convert fully accidental damaged car to new car on road ( Denting, painting, servicing bays, easy availability all major accidental spares like Head lamps, Tail lamps, bumpers, doors, radiator grills, windshields and other cosmetic spares)

    vii) Towing facility for car from radius of 25kms from the service station.

    viii) Tie-up with all Tata-Fiat dealers in city for immediate availability of spares( In case if it is not readily available in the exclusive service center)

    ix) It should also sell original FIAT spares to customer (Counter sales) if somebody in nearby town can not bring his FIAT to city for repairs. It will ensure all FIATs in Tier-II & III cities will get at least original spares.

    x) "Collect - Service- Deliver at Doorstep" facility on payment basis from either residence/office. Free servicing of new cars to be strictly completed in 01 day ( If no major issue/ other job asked by customer) . There are so many customers who really can't spare a day to take car for servicing in morning and collect in evening.
    Last edited: Jul 18, 2011
  2. nkrishnap

    nkrishnap Staff Member Janitor

    Linea 1.3
    These thoughts are good. But will TATA let FIAT go on its for service as service revenue is quite profitable?

    But if FIAT needs to succeed they will have to look at this option definitely.
  3. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    Though I agree with the concept, there is some constraint, due to JV with Tata.

    First, without Tata, Fiat will have tough time serviving in India. It would take time to settle and huge investement. Fiat is already behind w.r.t product, compared to ever getting tough market.

    Having said that, my view is, ans I think Fiat is working on the feasibility, the exclusive service centers can be opened in major cities, where existing Tata service center is not able to handle the volumes.
    Exclusive means, only Fiat cars can get serviced there.

    See in current scenario, Fiat can't force this on Tata.
    Since Fiat did mistakes in past with their wonderful products, they(along with customers) has to suffer a bit.

    If they can do this, it will be wonderful though.

    Again, same as above, if it happens, it will turn the fortunes for Fiat in India, but practically looks very difficult.


    I think this is already available with Tata dealers, so shouldn't be an issue.

    I believe the cost of Fiat (new cars) is pretty competitve at this point of time.

    Agree, this is the must for any service center.

    Agree, shouldn't be a problem as this exists with most of the current ASS.

    Finally, best is to have separate service centers for Fiat cars, from same Tata dealership. Have a specialist from Fiat directly, in all major cities, who can pin point the issues with Fiat cars.
    Fiat needs to convince Tata, this will be helpful to both. Specially when Fiat small cars comes, volumes will increase and existing set-up can't handle the volumes.
  4. nk4FIAT

    nk4FIAT Superiore

    Thanx Ravi for detailed review and giving opinions.
    If FIAT could convince Tata, it will be helpful for both. In fact if "Company operated" is not technically possible then existing group/ interested other group can also be awarded the contract by Tata-FIAT to start " Exclusive FIAT Service Center (EFSC)". This seems to be feasible because there are so many Tata showrooms who does'nt sell or service FIATs. So they are exclusively for Tata cars. In similar model there will be few "EFSC"
    Last edited: Jul 19, 2011
  5. Cinju

    Cinju Esperto

    Ravi I agree with what you have said. Due to the JV, FIAT has got many restrictions. But I am sure they wont have problem in opening Fiat exclusive centres with the same dealers of TATA. Only point is FIAT should be treated as FIATs & not INDICAs or Manzas and FIAT trained personnels should be handling the facility.
  6. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    The major hurdle I see, is you need to convince Dealers. They have to spend money, so they will see the profit. If Fiat can show to dealers the profit, and if it is feasible, I don't see any problem is separating out.
  7. redbull


    I personally think FIAT should continue to expand with more TATA service centers even if they want to open exclusive FIAT service centers. It is difficult to go solo and with the kind of reach TATA has, this is, in my opinion, a golden opportunity to beat new car manufacturers and join the league of Maruti and Hyundai - FIAT should try hard to make as many TATA service centers, FIAT authorised. If FIAT waits for sales, then it will never happen unless they proactively expand service centers - people will not buy unless they are convinced of after sales service. FIAT should offer some incentives to these TATA dealerships for sales and service - like giving longer credit period etc.
  8. nk4FIAT

    nk4FIAT Superiore

    Just read the Advt. from Mazda Motors, Secunderabad-
    "Good News for all Cielo and Matiz" Owners. Get your cars serviced by factory trained technicians!!!!

    if after almost 7-8 years after closure if any dealer is still Advtzing Service Center for out-of-production cars which plant is also closed. I feel if FIAT again asks for dealership/service centers, few of the old dealers may show interest again. And finally they will add-up to more service centers for FIAT including existing Tata-Fiat dealers.
  9. karan desai

    karan desai Superiore

    Morbi, Gujrat
    i still see a lot of palios and unos on the roads and if fiat takes care of these customers they will surely gain a lot of confidence from people. and most of the linea punto owners were fiat owners previously. so if customers show this much trust on fiat they should also reciprocate.
    when i asked the SC if they do unos in the free check up camp their reply was negative. though fiat allows its servicing they were simply not interested. this attitude should change.
  10. Ichimaru

    Ichimaru Regolare

    Gurgaon, India
    +1 Karan.
    FIAT has actually ill-treated many previous FIAT (Palio/Petra/Siena/Adventure/Uno) owners, who actually helped FIAT to sustain in India when the company was rumored to shut down. If FIAT can bring these people into confidence again, it would certainly help in brand building.

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