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Fiat and Tata to re-align their Indian joint-venture

Discussion in 'Fiat India News' started by cyberdoctorind, Jan 4, 2012.

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  1. Tony

    Tony Esperto

    Kalamboli, Navi Mumbai
    Grande Punto 1.2
    Great News, Lets hope for the opening of the Sole FIAT sales and Service outlet soon,
    And am quite sure that the sales will gradually pick up once these information is published in all the news papers, So FIAT-INDIA go go go , Make it a breaking news in all the channels,
  2. VahanPujari

    VahanPujari Staff Member Janitor

    Fingers crossed. Hope Fiat does implement this quickly & effectively unlike the speed of execution it has demonstrated till now.

    It's not easy to develop distribution network in such a vast country. That's a challenge Fiat has to overcome.

    In addition, Fiat will have to spruce up it's logistic for availability of parts for there will not be a TASS to pass the buck on for delays. :mrgreen:
  3. Fiat India had to take some drastic steps, so they are taking this risk. I think this should help in Fiat making a comeback.

    My biggest worry is where will the present customers service their car? Also will a Fiat dedicated showroom come up soon in tier-2 cities like Guwahati, though Guwahati had a Fiat showroom before the JV.
  4. Ashish Agrawal

    Ashish Agrawal Timido

    Since the Fiat has decided not renew the distribution pact, I assume there must be some understanding between the two companies for the Fiat, to allow to setup its own distribution network within certain time frame & till than Tata will continue to sell Fiat products. I am just concerned about the aftersales service that Tata is offering, which has vastly improved over the years & has prompt warranty settlements, esp for fiat. More to this, there are several trained technician in most TASS, which have expertise in Fiat.....what abt that???There is already a problem with spare parts availablity & once the JV has ended, it is quite likely that TASS stop taking interests in the service of fiat cars....anybody here with more detailed insider information??????
  5. darkshooter

    darkshooter Amatore

    Navi Mumbai
    Last edited: May 2, 2012
  6. singh

    singh Amatore

    Its GREAT if they open their own Showrooms , but question is WHEN ? .
    It may happen that TATA stop having inventory of FIAT SPARES and Cars ending up in Garage for weeks over minor issue . Customer is again in big DILEMMA whether to buy FIAT or not , as still future is less certain than even FIAT-TATA venture .
    If Fiat starts SOLO in few months than sales will boost for sure , but in next few months if sales get 50% less comparesd to last year (may happen as customers are not sure of FIAT) than FIAT's future plan will sink repeating PALIO days .
    Moreover finding new dealers who are ready to spend crores on brand which is already Sinking will be very difficult.
    Hope for Best
  7. Bala

    Bala Esperto

    Firstly,the JV was signed to be in effect only till 2012 and 2012 has arrived.
    Secondly,the existing JV dealers would be given an option(I beleive) to continue of being FIAT dealers,which would bring peace of mind,otherwise the situation is really scary.
    All along,when ever anyone asked me about service centres for FIAT,I would reply calmly that it's the same TATA,but now????
    I was a person who had suffered most at the hands of TATA A.S.S and I had always cribbed about the TATA a.s.s but still the JV gave me some peace of mind and though no spare was readily available,I atleast thought it would be sourced,but now???
    Even if the all new FIAT showrooms are set,come on,the FLUENCE,which is a segment higher,costs only 2.5L more and for the money for PUNTO,one has umpteen choises from Ertiga to Sunny,so why Linea or Punto,unless the buyer is extremely crazy about Fiat,like me,who bought a car without even a TD.
    Too little and too late.
  8. gopscreative

    gopscreative Amatore

    Well, FIAT SPA has made the big announcement, But will it make the JV split up big? Have to wait and see!!
  9. Grandeur

    Grandeur Staff Member Janitor


    Fiat, Tatas end distribution pact
    May 3, 2012, 05.22AM IST TNN

    NEW DELHI: In a bid to revive its struggling Indian operations, Italian car maker Fiat will take full control of sales, marketing and service activities, ending the distribution pact with manufacturing partner Tata Motors. The move is part of a re-alignment process.

    "Fiat and Tata have agreed that in order to further develop the Fiat brand in India, management control of Fiat's commercial and distribution activities will be handed over to a separate Fiat group-owned company. Currently, Tata Motors has been managing the distribution responsibility of the Fiat-branded products in India through joint Tata-Fiat dealerships," the company said. TOI had first reported about Fiat's plans to go solo in sales and marketing in its January 4 edition.

    Fiat said the move will provide greater focus on its brand. However, Fiat and Tata Motors will continue with the joint venture they have for manufacturing cars at Ranjangaon in Maharashtra.

    "It will continue with these manufacturing activities as they are outside of the new distribution agreement and will supply cars and powertrains to Fiat and Tata," the company said.

    Fiat's operations in India have been struggling and despite the growth in the market, the company has only been a fringe player. Fiat could sell a paltry 16,073 units in India last fiscal (down 24%) in a market where 2.6 million passenger vehicles were sold. Tata group chief Ratan Tata had last year said his good personal rapport with Fiat CEO Sergio Marchionne had not translated at the working level of the two firms. "...I have to admit that so far, the venture with Fiat has not been as active as we had thought," he had said.

    Fiat has also started setting up a separate dealership network outside the joint Tata-Fiat network it currently has. "Development of the new Fiat dealer network for India will start progressively and the 178 existing Fiat-franchised Tata dealers in 129 cities will be encouraged to form the foundation of the future network. Fiat will establish a new, separate, company, which will assume responsibility for all commercial and service related activities," Fiat said.

    Last edited: May 3, 2012
    1 person likes this.
  10. ENKI

    ENKI Esperto

    This is indeed bad :A
    Ratan Tata & Sergio are very good friends. Sergio offered FIAT board's membership to Ratan. A Ferrari California was also gifted to Ratan Tata. Not only this TATA had their Jaguar's platform on free of cost offer to FIAT's if they can be of any use what so ever. They have been very good friends.

    I honesty think otherwise. I think FIAT may have seized their fate in India now. This is a bad bad move. They should have waited till 2013 gets over.
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