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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. PaddleShifter

    PaddleShifter Staff Member Janitor

    Grande Punto 1.3
    Things speak for themselves here. I am sure TATA won't let go of FIAT until they reach Brazilian market. ;)
  2. Ranjan

    Ranjan Novizio

    Navsari, Gujarat
    TATA to re-examine Joint venture

    Just Now heard on new that Ratan Tata has announced that he would re examine the Joint venture partnership of Tata and Fiat. This was said by him in an interview to JD power. He said-
    "Frustrated at the relative lack of success, Tata Group chairman Ratan Tata has said that the 4-year-old Tata Fiat joint venture needed to be critically examined and that the Italian car maker needs to launch many more models in India. In a recent interview to market research firm JD Power, Tata said the potential of the joint venture for growth is still good and there was no reason to give up.
    "... I have to admit that so far, the venture with Fiat has not been as active as we had thought," Tata said. "...I think that Fiat has to launch more models to keep dealers interested. It also has to look at its cost structure in terms of parts and components. The JV needs to be looked at critically and until that happens, it's not going to be optimised."

    The two came together to form a joint venture, Fiat India Automotive Ltd, in 2007 but the JV has been struggling since then. While the Indian passenger car industry surged 30% to clock 2.0 million units last fiscal, Fiat's sale dropped 15% to 21,066 units.

    "As far as what else we can do with Fiat, I think Sergio Marchionne and I can really talk to each other. However, at the working level, it hasn't quite been that way. We have looked at Latin America to do something together, but things haven't moved as they should have done," Tata said.

    He, however, ruled out giving up on the partnership, saying "... I think there's nothing wrong with the concept of the deal - it is a very healthy concept."

    From - http://www.hindustantimes.com/Tatas-re-examine-Fiat-partnership/Article1-709433.aspx

    At least he commented that he would not give up the partnership!
    I am really worried about the After sales service of our cars. I hope that Fiat comes up with something good up their sleeves.

    Similar thread can be checked out at
  3. Tony

    Tony Esperto

    Kalamboli, Navi Mumbai
    Grande Punto 1.2
    Tata will never Leave Fiat, If they do so then from where will they have engine to pump in Vista, Manza and the Technology of Europe.........
    its not Tata, But Fiat should talk on the issue to increase the sale and monitor the diversion of customer from FIAT...........
    WhAt SaY TFIans !!!!
  4. Ranjan

    Ranjan Novizio

    Navsari, Gujarat
    True! but as you see it is the other way round! Ratan Tata saying that he wants to review the JV. Manza has bled Linea!
  5. amit

    amit Superiore

    Navi Mumbai
    I don't think Manza has bled Linea.

    What probably happens in a Tata-Fiat showroom:

    Customer walks in looks and test drives the Linea and loves it. Has one conern though and asks the sales guy about Fiat spares and service issues. Salesguy senses the sale is getting difficult so immediately says, "Sir, how about the Manza? It has the same Fiat engine and gearbox but since it's Tata you will not face spares & service issues."

    Do you blame the average customer for switching from Linea to Manza? Of course not.

    Do you blame the salesguy for switching a Fiat customer to Tata? Of course not! The guy's commission depends on what he sells. When there is a easier product to sell, why take the difficult route of trying to convince the shaky customer to put 9 lakh big ones on a brand he isn't sure about.

    It is a Fiat failure in convincing customer's that the Palio days are long gone. You can shout from the roof tops as much as you can but the proof of the pudding is in the eating. Fiat may have their spares sorted out in west India but what about south? Kerala is a big diesel market - diesel's are a Fiat forte , and we see lots of people talking about spares not being avaliable.

    I am not sure how this JV works but it seems like Fiat believes it's responsiblity ends when it hands over cars and spares to Tata. How the same are distributed is Tata's responsiblity. This hands off approach is not going to work. The sooner Fiat realises this the better it is for them.
    Last edited: Jun 15, 2011
  6. prihir

    prihir Amatore

    Yes. Amit,
    Right you are.

  7. gautamkhadse

    gautamkhadse Regolare

    I dont know if you guys read an interview of Mr Rata Tata in the newspaper ( recent news ) , like many of us even Mr tata feels, that the TATA-Fiat JV hasnt been very fruitful and hasnt been utilized to its full potential .

    Read this article :

    Also , read one Comment below the article , from S A SHAH about discounts on cars older than 6 months

    He Says :

    Dear Authors,
    Even TATA-dealers know that FIAT cars have no matches in every class, but don't promote their sales, though in so called JV. What I've observed that Tata-dealership managers/executives sell FIAT cars like Linea-Tjet to their friends/relatives on huge consessional rates,because they take advantage of FIAT-policy of selling cars on high discounts after six-months of manufacture.Under this policy, a Linea-Tjet can be sold at a discount of more than one-lac.... it is really a steal.
    I'm a great fan of FIAT, I'll never come to know of this "offer of steal" because nobody there in Tata-dealership happens to be my relative.
    FIAT-India, why? do you lack knowledge of business management and strategies.... please study it fast and rule the Indian-market, you have class of world-class...!!!

    S A SHAH,NIT,Srinagar-6, India

    Do you think its true ?
  8. varin11

    varin11 Superiore

    i think if fiat drop Tata and come alone it can benefit
  9. sid_10000

    sid_10000 Regolare

    Fiat will only benefit with a better portfolio and a better sales strategy. It needs to advertize the strong points as well.
    A small hatch with 1.1 / 1.2 L engine and between 4.5/5.5L is need of the hour
  10. kaps

    kaps Superiore

    What a crook TATA is. Read this statement by Tata

    "... I have to admit that so far, the venture with Fiat has not been as active as we had thought," Tata said. "...I think that Fiat has to launch more models to keep dealers interested. It also has to look at its cost structure in terms of parts and components. The JV needs to be looked at critically and until that happens, it's not going to be optimised."

    This is what Rajeev Kapoor said

    Q: Where are you on the Dualogic automatic transmission plans?

    That is very much on the cards, it is still being discussed...see we have a partner and whatever we launch here we have to give to Tata Motors too – it has to be able to fit their cars too..

    Clearly TATA wants to fleece Fiat for new technology without providing proper support. Fiat seems to have understood the game plan, but is stuck with the JV. Sooner they build their own network, better for them. This joint venture has to go on till Fiat establishes its own network. If the breakup happens without any network, naysayers will be quick to say that Fiat is packing bags.

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