1. Introducing the smashing new Team FIAT T-Shirt !! To order yours click here : Team FIAT T-Shirt

New Regional HQ

Discussion in 'Fiat Global News' started by kaps, Oct 11, 2011.

  1. kaps

    kaps Superiore

    Messages:
    673
    Arakkonam
    Looks like a positive development for this region.

    http://www.oncars.in/Car-News-Detail/New-regional-headquarters-for-Fiat-group/1153

    Fiat S.p.A has opened a regional headquarters in Shanghai in order to enhance the focus on the Asia-Pacific region. A dedicated office will now concentrate on the operations in the emerging markets of India, China, South Korea and South-East Asia. The new structure has been introduced by the Italian manufacturer to tackle the issue of plummeting sales in those regions. This initiative is expected to improve communication and feedback mechanism for the customers, as the needs of the Asian markets differ from those of the US and European markets.


    The new regional focus should help Fiat India, as the company is battling against dipping sales in comparison to its competitors. It will also facilitate cost-effective supply of raw materials and parts among the regional subsidiaries, making the entire operations cost three to five per cent less. The new HQ is expected to improve product quality along with service infrastructure and quality of experience delivered to the customers.

    However, this also means certain delay in important decisions as the same will now require assent from regional office as well as global headquarters before implementation.

    Same news from another source with some analysis

    http://www.livemint.com/2011/10/10004021/Fiat-hopes-global-recast-will.html

    This is interesting:

    The regional focus may help the company become more responsive to customers, said R. Venkatraman, a Chennai-based independent management consultant.

    “In my opinion, what is driving this initiative is putting in place a better communication and feedback mechanism from customers”, which is critical for a global company, he said. “The way a customer behaves in the US is different from the way one does in China or any other emerging market.”

    The danger is that this may delay macro-level decisions, such as budgeting, as these will need to be vetted by both the regional and global headquarters, said Venkatraman.

    While Fiat’s cars are admired for their styling and performance, the quality has disappointed some prospective customers.

    “They need to enhance product quality significantly,” said JD Power’s Arora. “The service infrastructure, along with the quality of experience delivered to the customers, also needs attention.”
    Last edited: Oct 11, 2011
  2. rsinfo

    rsinfo Regolare

    Messages:
    422
    New Delhi
    Ha.

    Even GOD helps only those people who help themselves. FIAT India is certainly NOT in that category.
  3. kedarbendre

    kedarbendre Esperto

    Messages:
    4,215
    MH 12
    Totally agree to rsinfo.

    Changing the Top Management didnt work for FIAT India then what will these Chinese Management will do as they are sitting in Shanghai.

    FIAT first should get to know what Indian Customer wants.

    Swift has the same FIAT Multijet Engine but still it is selling like anything in India then why not Punto?
  4. Agree with Kedar that FIAT should first address the needs of the customer and also build faith that no matter what, company will be there till eternity and wont desert them like last time. Maruti has built that faith and hence customers are ready to buy whatever is offered no matter what.
  5. Narayan

    Narayan Regolare

    Messages:
    282
    Chennai
    Looks to me like a good initiative. But what puzzles me is that, this office being set up in China. Does Fiat have a larget market share in China for Fiat to prefer Shangai over any place in India?
  6. kedarbendre

    kedarbendre Esperto

    Messages:
    4,215
    MH 12
    Narayan IMO this is the one more mistake of FIAT that they are going to open HQ in China instead of India.

    If they have opened FQ in India only then it will be helped to FIAT for image makeover.
  7. kaps

    kaps Superiore

    Messages:
    673
    Arakkonam
    Fiat has a negligible presence in Asia. They have some foot print in India only. After reading through these reports, this is what I could understand:

    Fiat has begun to move out of Confindustria, which is an umbrella of trade unions in Italy. It has also taken a decision to close a plant in Sicily. What this means is that Fiat is starting to cut its presence from Europe and moving more towards US. Chrysler profit has actually helped Fiat http://www.bloomberg.com/news/2011-...ids-fiat-as-profit-gap-widens-to-85-cars.html .

    Chrysler and Fiat is a volatile relationship, but this is what Merchionne feels about it: “Long-term, neither Fiat nor Chrysler would have made it on their own,” Marchionne said on Oct. 7 in Montreal. “Fiat was too small and too handicapped by an inadequate business model in Europe to have any hope of a future.”

    Although a lot later, they have realised that for expansion, they have to move to US market and to Asia, so this regional headquarter. India plant is going to be the hub for supply of engines and parts.

    Downside of this RHQ is that now decision making, as far as Fiat India is concerned, will become slower, as the decisions will move through a 3 tier chain now. Positive is that focus will be higher and market considerations will be better understood. However, there won't be any immediate visible gains from this.
  8. Narayan

    Narayan Regolare

    Messages:
    282
    Chennai
    @kaps, based on your reports, i feel Fiat should be independent in India if it is going to make India as its manufacturing hub for its Asian operations. A joint manufacturing plant with Tata is not going to help is my humble thought.
  9. kr_vasudev

    kr_vasudev Superiore

    Messages:
    611
    Bangalore
    The move of having exclusive FIAT Service Stations and Showroom is a good to start. We need atleast two service stations in each major cities witht top class engineers. Get them trained and provide a world class service.

    Punto and Linea both deserve better hands compared to now that are serviced by the very next bay of NANO/INDICA

Share This Page