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

TATA-FIAT JV FACES MOUNTING LOSSES

Discussion in 'Fiat India News' started by amogh, Aug 4, 2010.

Thread Status:
Not open for further replies.
  1. One thing for sure FIAT needs to increase the Service netwrok. Looking at the number of cars which are there at Bharti or Fortune, its pretty clear the existing number of service centers are not capable enough to take the load.
  2. Sumit

    Sumit Superiore

    Messages:
    607
    Munger
    i think Fiat shud wake up. seperate showrooms is a must in both urban and rural areas.
  3. amit

    amit Superiore

    Messages:
    767
    Navi Mumbai
    The JV started operations in 2006 and was expected to break even in 2012. As VP said things shouldn't be alarming right now. Don't get carried away by the increase in loss compared to last year. Having said, that the article says losses are due to high material costs. Looking at the Punto interiors this doesn't seem to be the case! ::V

    I am guessing the very aggressive initial pricing of the Linea and Punto has something to do with this. We have seen the prices creeping up for these cars slowly so it seems like Fiat deliberately took a hit to make a dent in the market.

    Both these partners need to buck up from here, specially Fiat. Newer cars are getting launched all the time. Vento will make life miserable for Linea just like Polo is making it difficult for Punto. If there is one company Fiat should look at for marketing it's VW. Follow them and see your sales rise.
  4. sharma_sanjeevin

    sharma_sanjeevin Regolare

    Messages:
    279
    Mumbai
    Separate Showrooms, may not be possible for them in both Urban & Rural due to Financial Constraints may be or due to the JV agreements.
    But Yes, they should atleast have separate showrooms for the Metros, which is the Prime Focus Market for FIAT right now.
  5. keshav

    keshav

    Messages:
    87
    Bangalore
    FIAT has invested heavily in the setting up the manufacturing plant. It will take few years to recover the cost. This would be the case with most of the manufacturers(VW, Ford, GM ), who have setup new facilities recently.
  6. High material costs must be mostly due to metal prices. ::V . Fiat is built like a tank with better guaged sheet metal :devil than any of the class competitors.
  7. Arun1100

    Arun1100 Regolare

    Messages:
    442
    Bangalore
    PUG Forum Update:

  8. amogh

    amogh Staff Member Janitor

    Messages:
    1,377
    Pune
    Grande Punto 1.3
    ^ : Thanks Arun !!

    Alrite : come on members !! Let the "contrary" posts start to flow now !! :p
  9. Vroom

    Vroom Amatore

    Messages:
    234
    Mumbai
    2 things:

    1. Putting up manufacturing plant is a huge huge effort and lots of investment. I think its going to take some time for Fiat to break even, until then they report a loss. So, that's perfectly fine. Let's give Fiat time.
    2. Selling cars (and that too for Fiat) and making profits is like the mutual funds market. You got to hold on to the MFs to grow over longer period timeframes (more than a year) to beat inflation and be able to make profits. Do not look at it day-to-day and feel bad. Same is the case with Fiat. We got to look at it for a longer period rather than comparing sales month-on-month. I am sure we will all be surprised when Fiat starts selling in larger numbers sometime, maybe next year (look at Chevy, they were selling so few UVAs etc for a long time and came back with large numbers with the Spark and the Beat).

    My 2 cents... :)

    Cheers,
    Vroom
  10. Sumit

    Sumit Superiore

    Messages:
    607
    Munger
    fiat -tata bhai-bhai.
Thread Status:
Not open for further replies.

Share This Page