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Will Tata Motors and Fiat Ride Out the Jinx?

Discussion in 'Fiat India News' started by Ravi, Dec 2, 2010.

  1. Prateek


    @ Amit - Surely agree to your idea that FIAT India dealership (standalone) is a dead investment for any businessman in today's scenario. But TATA with the deep pockets they have, cant they operate exclusive FIAT dealerships (knowing they have equal stakes in profit/loss for FIAT India)? I am saying from an end consumer perspective wherein even if the product may be defective(harsh word) or faulty, but if I am assured that I will heard and taken care of, my ownership experience and pride do go up!

    Look at Toyota worldwide: despite the innumerable call-backs they still enjoy customers' support and its evident from their global numbers. At the TATA-FIAT showrooms / workshop, I have serious doubts of the efficacy of the feedback mechanisms. Maybe a little out of context, but I had tried taking the email route to get some recurring issues fixed, with marking company executives (both TATA and FIAT) in the loop. Even then their was no redressal either in written form or in the car.

    No media blitz / No possible upcoming models - Instead they might want to take their customers seriously and make them their ambassadors in India.
  2. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    This is what exactly they are planning - read this - http://www.teamfiat.co.in/forum/sho...-do-to-sell-more&p=55791&viewfull=1#post55791
  3. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3

    Fiat India has restructured its board with the replacement of two directors. The 10-member board has equal participation from both Fiat Group Automobiles SpA and Tata Motors Ltd.

    As part of the rejig, Giovanni Bartoli and Harald Jakob Wester have moved back to Fiat Group headquarters in Italy.

    In their place, the company has appointed Gianni Coda and Alessandro G Baldi as the new directors in Fiat India Automobiles Ltd. It has also appointed Ezio Barra and Giovanni Sella as the alternate directors for Coda and Baldi, respectively, in case of their unavailability.

    Besides, Silvia V Blina has been appointed as the alternate director for Alfredo Altavilla. Stefan Ketter and Lorenzo Sistino are the other two directors on the board.

    "This is a very routine restructuring of the board. There is nothing serious about it," Kapoor said.

    Source - http://economictimes.indiatimes.com...india-under-cbu-route/articleshow/9124625.cms
  4. Tata-Fiat put the brakes on losses


    Cost cutting measures and improved exports of engines have helped the struggling Tata-Fiat joint venture to bring down its losses during FY2011, although production of cars remained low.

    The Rs 4,000 crore Ranjangaon facility near Pune, which makes cars, engines and transmissions for both Tata Motors and Fiat, adopted aggressive cost cutting measures as part of a renewed attempt by both companies, especially Tata Motors, to put the JV back on track.

    According to financial disclosures made by Tata Motors in its latest annual report, the joint venture company known as Fiat India Automobiles posted a loss of Rs 243.6 crore for FY11, against a loss of Rs 272.3 crore recorded in FY10.

    Tata Motors, the largest maker of automobiles in India, and Italian company Fiat Auto SpA, own 50 per cent each in the JV. Since inception, the JV has reported a total loss of Rs 1,214 crore since in the past three years.

    Rajeev Kapoor, president and chief executive, Fiat India, said: "We have managed to cut down our losses because of increased production of engine and transmission and aggressive cost control measures. This is a result of the restructuring which is taking place at present within the company."

    The JV company has seen a top-level management rejig in recent months with Carl Peter Forst6er, the current group managing director and CEO, appointed as the chairman of the company.

    Some new faces have joined the company from Italy and Tata Motors to support the sales and marketing teams. Several measures have also been adopted at the retail level to spruce up sales.
  5. sungoa2010


    Does this loss reflect that of only Fiat vehicles? I think Vista and Manza is also coming from same factory.(Please correct if I am wrong)
  6. royj

    royj Esperto

    These figures are for the JV and not specific to Fiat vehicles. This includes the engine and transmission of Multijet and FIRE engines as well as Punto, Linea and Manza. Vista is not made at this plant.
  7. Sumit

    Sumit Superiore

    i think Vista is also made at this plant.
  8. Yeah Mr CEO and president - Faipl right. There's so much cost cutting going on.. Your cost cutting methods are bringing a wonderful car to it's knees. Please take home Rs. 1 as your salary, if possible even less (as you and your team are not interested in selling cars but prefer to be OEMs to so called successful cars) until you further cut costs and bring down loses of the JV which unfortunately has succeeded in ensuring low acceptance of the Punto platform in the Market. Please note that GP has single handedly revived the fortunes of Fiat in europe when Fiat was about to file bankruptcy and here it barely sells. excellent you guys are ..
    Last edited: Jul 21, 2011
  9. FIAT-TATA JV : Change in Agreement

    Courtesy : Wall street Journal


    RIMINI, Italy SpA will stay in its joint venture with Indian partner Tata Motors, but it will seek to change the terms of the agreement, the chief executive of the Italian car maker said Sunday.

    "The terms will change but the project will keep going ahead," told reporters on the margins of an event held in this coastal town.

    Both Fiat and Tata have expressed frustration with the performance of their joint venture this past year. Fiat, for one, sells only tens of thousands of its own cars in India's growing market, far less than its expectations--let alone its competitors.

    One problem has been the fact that its cars are sold through Tata's network in which dealers tend to favor selling Tata rather than Fiat cars.

    Fiat also makes engines in India, one of the emerging markets in which car makers are expanding to reduce their reliance on more mature, less vibrant markets like Europe.

    Asked to give his opinion about the debt crisis, Mr. Marchionne said Italy's government must regain credibility in capital markets as it strives to bring its finances in order and work toward lightening its debt burden.

    Fiat is one of the biggest companies in the country, making a big contribution to its economy.
    Last edited: Aug 24, 2011
  10. Ravi

    Ravi Staff Member Janitor

    Grande Punto 1.3
    - Sergio Marchionne, CEO, Fiat.

    Source - Economictimes

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