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Who has gained in the FIAT-TATA jv??

Discussion in 'Fiat India News' started by Bala, Aug 21, 2010.

  1. Bala

    Bala Esperto

    Is it TATA or FIAT??
    Take for instance the case of TATA
    -50% of the salaries is now paid by FIAT,I dont see any Increase in the number of staff either at A.S.S or at the sales point.So,it's the same staff whose 50% of the salary is taken care off by FIAT
    -50% of the rental paid by FIAT.I dont see any increased space either at sales or service centre,hence it's the same space whose 50% of the rental is taken care off by FIAT
    -Only 50% of the investment at the Ranjangoan plant by TATA.The plant manufactures 10 times of TATA cars as it does FIAT cars,still the investment was only 50 %,it's not TATA's fault though
    -The know how of MJD and SAFFIRE engines from FIAT,but still the Vista and Manza does not sell even one third of the earlier number of Indicas and indigos,not a fault of FIAT though.
    -Access to European and South American markets for NANO and ARIA,via FIAT
    So,what has FIAT gained in the JV??,just selling 2000 units a month??,it's not TATA's fault though and neither did FIAT have another option.
  2. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    Bala are you sure that Sales/Service staff's 50% salary is paid by Fiat.
    One more thing, when we say Fiat, in Indian perspective, its 50% owned by Tata.
  3. J Ravi

    J Ravi Esperto

    Fiat India have to pay for their sins committed during their previous avatar. They do not have any other better option, I feel.

    Even in China, Fiat has tied up with Guangzhou Auto for an investment of $ 626 million for car production joint-venture that will begin production in 2011. Please see this for more details:


    Fiat has JV partners like Tofas in Turkey and Sollers in Russia.
  4. kaps

    kaps Superiore

    What Fiat has gained? I guess an entry into the shopping list of prospective car buyer. People were not even ready to consider Fiat in 2008, but in 2010, that trust has been regained to an extent. There might not be visible gains, but yes, getting into the mindscape after spectacular failures is worth something.
  5. sharma_sanjeevin

    sharma_sanjeevin Regolare

    ^Yes. Agree, that FIAT Cars currently are in the TOP 3 Choices of a Would be car Customer. The scenario has drastically changed in favour of FIAT, now people have started recognising the Two World Class Products.

    Coming on to the discussion, that "Who has gained in the FIAT-TATA JV". IMO, both the companies have benefitted from the JV, but the one who has benefitted the MOST is TATA because of the Technology of FIAT the TATA Cars have made their way into peoples Consideration (Families) otherwise if there was no Multijet / Fire (Lesser Nos Though) the MANZA would not have been a Huge Success for TATA. As earlier their cars were the First Choice of the Tour / Taxi Operators.

    And, it is FIAT who has gained a Wide Spread A.S.S Network of TATA. Currently it seems, TATA has gained more than FIAT from this JV.
  6. keshav


    I agree. Being a first time buyer i would have been very hesitant to consider FIAT cars. The name TATA associated with them gave me the confidence to go ahead with the purchase of Punto. I might have a different view now :)
  7. royj

    royj Esperto

    It would not be proper to analyse this JV in this manner. Both Tata and Fiat benefits from this symbiotic JV. Fiat provides the engine technology which Tata lacks and Tata provides Fiat the widespread service support. Both are required for an automobile company to survive.
  8. TATA-FIAT situation will be reversed soon once TATA starts selling in Brazil/Europe..it will be more even then
  9. VahanPujari

    VahanPujari Staff Member Janitor

    Very well said ::T
  10. Andy

    Andy Esperto

    Chembur Mumbai
    Grande Punto 1.3
    Very Right Roy...

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