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Old 4th May 2012, 21:54   #136
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

They say all corporate managements go around in circles and finally come back to the same spot where they started. You see this arises out of the fact that managements have to make it appear that they are doing something (even if they arenít) regardless of the outcome Ė so a few years ago, they decided to go with Tata (Iíll come to how this came about in a bit) and now they have decided to not go with Tata.

Fiat started its joint venture with Tata based on an editorial by Hormazd Sorabjee in Autocar India, about 7 years ago where he commented on Fiat's misfortunes and suggested that it would be a good idea for Fiat to team up with Tata as they have synergies / complementing strengths.

The fact that Fiat went ahead and signed up with Tata on the basis of this editorial indicates a serious lack of management depth within Fiat Ė it is one thing to run a magazine and put down suggestions from the top of your head but quite another to take up that idea and execute it . Fiat was probably desperate and clutching at straws at that point in time and this editorial must have been one of the straws. The management depth required to run a automobile manufacturing / distribution / selling enterprise is substantially more than running an automobile magazine Ė Fiat seems to have realized this ten years after.

Another of Fiatís big bloopers:

When Fiat introduced the Fiat Palio 1.6 Sports S10 Limited edition, they got the car autographed by Sachin Tendulkar. Now, would someone like a cricket bat autographed by Narain Karthikeyan or Dhoni ?

The irony was that this was the period when Fiat owned Ferrari and had Michael Schumacher driving for them!!! If they had got the car autographed by Schumacher and made it a Schumacher Limited Edition rather than a Sachin Tendulkar Limited Edition the car would probably gone down well with potential customers and and would have probably commanded a high resale value inspite of Fiat. Of course, it may have costed a bit more for Schumacherís signature but would have been worth it. As expected, this car didnít sell at all and finally was disposed off at massive discounts.

As for the current exercise in futility, the less said the better Ė at least one wouldnít have to wait for ten years to see the end of another of "Fiatís Management Decisions".
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Old 4th May 2012, 22:51   #137
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Had a discussion with a SA in a Trivandrum-based Tata/Fiat dealer just a while ago. As per his knowledge, the dealership will continue to sell/service FIAT cars till NOV or DEC 2012. The reason cited is that the contract is valid for 5 years and it was signed in DEC 2007. It was an extendable contract but both companies decided not to extend it.

Please note that the above-cited info can be wrong, as nothing officially has conveyed yet to the dealership by Tata. The SA wants to express a disclaimer here.
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Old 4th May 2012, 23:19   #138
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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Originally Posted by sandeepmdas View Post
Had a discussion with a SA in a Trivandrum-based Tata/Fiat dealer just a while ago. As per his knowledge, the dealership will continue to sell/service FIAT cars till NOV or DEC 2012. The reason cited is that the contract is valid for 5 years and it was signed in DEC 2007. It was an extendable contract but both companies decided not to extend it.

Please note that the above-cited info can be wrong, as nothing officially has conveyed yet to the dealership by Tata. The SA wants to express a disclaimer here.
Makes sense. Otherwise, what will the existing users do - till FIAT sets up dealerships in their city?

For the first time since March 2012 - I'm thinking why did I switch from Maruti to FIAT. Not only me, I guess many fellow FIAT'ians are worried about this move from FIAT. Hope this plan of their's work.
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Originally Posted by kiku007 View Post
Does anyone have any idea on what cars FIAT India is going to show their prospective dealers? Please don't tell me, it's the same Punto and Linea. They are just going to run.

They need to show them a lineup of cars that they are planning to launch in the next 2-5 years. It takes 12+ months for Ford to announce a car launch and then actually sell it and it's 18++ months for GM. Now in, FIAT's case I haven't heard of anything on their next product.

So how are the dealers expected to make money?
  1. Sell Puntos and Lineas for the next X no. of years until a new product comes.
  2. Open the showroom when FIAT is close to launching their next product.
  3. Service FIAT cars. But how many are there in the road anyways?
Bottonmline: There's NO EYECANDY with FIAT to lure a person to open a FIAT Dealership. If FIAT is able to pull this off successfully, it will become part of MBA curriculum. Good luck FIAT.
They have announced a small car for end 2012 launch. But I think thats just not going to be enough to bring in the numbers.

If only FIAT had tied up with Maruti instead of TATA. Would have worked well for both brands. Diesel engines for Maruti and after-sales network for FIAT.
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Old 4th May 2012, 23:41   #139
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

+1 to that, i am surprised with the attitude, let me clarify i do not own a FIAT but i have 4 of my friends who own it and they say the niggles faced are minimum, and the build quality is miles ahead (experienced it myself) which justifies the price, regarding service yes they did make a mistake of venturing it out with TATA Service but we need to consider that they are ready for a change, instead of having a negative attitude let us see what they have in store for us, looking at Cafe Fiat i do feel they are on the right track
With companies like Hyundai / Skoda putting up a poor show in terms of Service and doing nothing about it (They have been in India for almost a decade now), FIAT at least has shown the courage

Last edited by GTO : 6th May 2012 at 01:52. Reason: Removing quoted post which has been edited
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Old 4th May 2012, 23:49   #140
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Quote:
Originally Posted by VeyronSuperSprt View Post

Another of Fiatís big bloopers:

When Fiat introduced the Fiat Palio 1.6 Sports S10 Limited edition, they got the car autographed by Sachin Tendulkar. Now, would someone like a cricket bat autographed by Narain Karthikeyan or Dhoni ?

The irony was that this was the period when Fiat owned Ferrari and had Michael Schumacher driving for them!!! If they had got the car autographed by Schumacher and made it a Schumacher Limited Edition rather than a Sachin Tendulkar Limited Edition the car would probably gone down well with potential customers and and would have probably commanded a high resale value inspite of Fiat. Of course, it may have costed a bit more for Schumacherís signature but would have been worth it. As expected, this car didnít sell at all and finally was disposed off at massive discounts.
So people would have bought Fiat just because of that Michael Schumacher name!!!

Looks like Hyundai sells its i10 because of Shahrukh Khan only. It does not matter that they have a good product, and a good enough setup all over to support and service their customers and care for them. It also doesnt matter that they took pains to make a firm commitment to India, they took pains to design and develop cars that appeal to Indian people and that are contemporary. But no, it does not matter. All matters is, Shah Rukh Khan.

So all you wanted was a Michael Schumacher's signature and not a car
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Old 5th May 2012, 00:05   #141
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Lightbulb Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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Originally Posted by joslicx View Post

So all you wanted was a Michael Schumacher's signature and not a car
Would you buy a buggati veyron signed by Anupam kher?

The S10 was a superb car. known for its insane power and handling,having a cricketer sign it kinda ruined its image.a fast car endorsed by Schumacher would have been a very good move.
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Old 5th May 2012, 00:13   #142
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Quote:
Originally Posted by VeyronSuperSprt View Post
Another of Fiatís big bloopers:

When Fiat introduced the Fiat Palio 1.6 Sports S10 Limited edition, they got the car autographed by Sachin Tendulkar. Now, would someone like a cricket bat autographed by Narain Karthikeyan or Dhoni ?

The irony was that this was the period when Fiat owned Ferrari and had Michael Schumacher driving for them!!! If they had got the car autographed by Schumacher and made it a Schumacher Limited Edition rather than a Sachin Tendulkar Limited Edition the car would probably gone down well with potential customers and and would have probably commanded a high resale value inspite of Fiat. Of course, it may have costed a bit more for Schumacherís signature but would have been worth it. As expected, this car didnít sell at all and finally was disposed off at massive discounts.
IMO, Fiat introducing limited edition S10 was not just to sell those small number limited edition cars but to show its indian commitment and strike chord with indian customer and I believe it was a very apt way, it helped sinking Fiat or not is another mattter.

You have any idea how much of Indians know who is Michael Schumacher or any company ever launching such an important product on name of a person who has no familiarity in the country? I know atleast two poeple who bought S10 that time just because of Sachin's name, may be they would otherwise have bought normal Palios but never a Palio MS marketed on name of Michael Schumacher.

Quote:
Originally Posted by VeyronSuperSprt View Post
Fiat started its joint venture with Tata based on an editorial by Hormazd Sorabjee in Autocar India, about 7 years ago where he commented on Fiat's misfortunes and suggested that it would be a good idea for Fiat to team up with Tata as they have synergies / complementing strengths.
Find it very hard to believe though completely ignorant about it. What is your source of this info?
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Old 5th May 2012, 00:24   #143
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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Originally Posted by Bluengel180 View Post
Would you buy a buggati veyron signed by Anupam kher?

The S10 was a superb car. known for its insane power and handling,having a cricketer sign it kinda ruined its image.a fast car endorsed by Schumacher would have been a very good move.
Well if I got the money and an inclination to buy the Buggati I'd buy it. doesnt matter if it is signed by Anupam Kher really!

Those who knew what S10 was bought it anyway. And it wasnt meant for others at all. India was not ready for a gas guzzler like that. Tendulkar had no role selling it neither in its flopping!
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Old 5th May 2012, 00:33   #144
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Finally they think its heading nowhere. Just hope Fiat capitalise on this oppurtunity and make the most of it.
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Old 5th May 2012, 01:36   #145
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Quote:
Originally Posted by VeyronSuperSprt View Post
They say all corporate managements go around in circles and finally come back to the same spot where they started.
As for the current exercise in futility, the less said the better Ė at least one wouldnít have to wait for ten years to see the end of another of "Fiatís Management Decisions".
I really appreciate your views but would also like to hear about your opinion regarding future course of action for the Fiat.
Anyone can criticize for the past actions as it is very easy. Without that your post looks kind of incomplete like a movie with NO proper climax.
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Old 5th May 2012, 02:12   #146
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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I think it is time to kill the brand name FIAT.
I agree.

"FIAT" is the main problem of Fiat.

My cousin was looking for car and I suggest him to test drive fiat.

His reaction: "FIAT ?? No, Never!"

I told him "at least test drive, don't buy"

He "No thanks"

He purchased Skoda.
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Old 5th May 2012, 02:36   #147
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Though one would like to assume that TATA Fiat together would have done all they could to move Fiat cars when they were together, one still thinks that someone important in sales and marketing was making all the wrong moves. TATA did manage to sell 10 times the number of cars from the same dealership with the same engines more or less.

Feel this may do fiat more harm than good. The Fiat vehicle owners who currently get their vehicles serviced with TASS may be worried about further services as the same dealers may not really want to line up with Fiat in the future. Feel they should have continued and made greater afforts with a wider range of products at even better prices. This may hurt Fiat further.
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Old 5th May 2012, 07:39   #148
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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Originally Posted by justin.das View Post
Sorry it's all misunderstanding.what I compared was how big fiat group is by size not by sale volume I have quoted the lines above.sales up's and downs are all part of the industry .maruthi sells better than Volkswagen that doesn't means maruthi is bigger than vw.
Not sure what you mean by size as ranking is available by any/ all categories. In any case, the rankings are worldwide and not restricted to India. btw, VW sells much better than Maruti worldwide.
Anyway, better to end this here.

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I told him "at least test drive, don't buy"
He "No thanks" He purchased Skoda.
Really? and he trusts Skoda a.s.s, wish him well
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Old 5th May 2012, 07:56   #149
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Quote:
Originally Posted by Bluengel180 View Post
Would you buy a buggati veyron signed by Anupam kher?

The S10 was a superb car. known for its insane power and handling,having a cricketer sign it kinda ruined its image.a fast car endorsed by Schumacher would have been a very good move.
Precisely.

Quote:
Originally Posted by joslicx View Post
So people would have bought Fiat just because of that Michael Schumacher name!!!

Looks like Hyundai sells its i10 because of Shahrukh Khan only. It does not matter that they have a good product, and a good enough setup all over to support and service their customers and care for them. It also doesnt matter that they took pains to make a firm commitment to India, they took pains to design and develop cars that appeal to Indian people and that are contemporary. But no, it does not matter. All matters is, Shah Rukh Khan.

So all you wanted was a Michael Schumacher's signature and not a car
Heard of the Subaru Impreza WRX Colin Mcrae Edition or the Mitsubishi Evo Tommy Makinnen Edition? These are extremely high performance cars and have been endorsed by rally drivers to further enhance their appeal.

Shah Rukh Khan appears in Hyundai commercials and does not sign his name on the back of every Hyundai i10. This does not make the Hyundai i10 the equivalent of a Shah Rukh Khan Limited Edition i10.


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Originally Posted by carwatcher View Post
I really appreciate your views but would also like to hear about your opinion regarding future course of action for the Fiat.
Anyone can criticize for the past actions as it is very easy. Without that your post looks kind of incomplete like a movie with NO proper climax.
What is important to note is the continuous string of management decisions going wrong. With a history like that, what comes out is the lack of capability to "successfully execute" decisions taken by the top management. When there is a history like that it would be very difficult for Fiat to turn around just by taking another "management decision" (to open dealerships independently) especially as they have already failed when they had independent dealerships earlier. However, if they do enhance their ability to successfully execute management decisions, then this current move could help.



Quote:
Originally Posted by gupta_chd View Post
IMO, Fiat introducing limited edition S10 was not just to sell those small number limited edition cars but to show its indian commitment and strike chord with indian customer and I believe it was a very apt way, it helped sinking Fiat or not is another mattter.

You have any idea how much of Indians know who is Michael Schumacher or any company ever launching such an important product on name of a person who has no familiarity in the country? I know atleast two poeple who bought S10 that time just because of Sachin's name, may be they would otherwise have bought normal Palios but never a Palio MS marketed on name of Michael Schumacher.



Find it very hard to believe though completely ignorant about it. What is your source of this info?
Showing your commitment to India is by improving your service to customers in India, gaining their confidence, and demonstrating that you have cars that are right for the Indian customer and not by getting a cricketer to sign your cars and then avoiding the rest.

There have been quite a few enthusiasts I know that have passed on the yellow S10 and bought the regular 1.6 because this endorsement actually had negative appeal to them.

The source is Autocar India magazine - have read this editorial myself - don't think the editorials are available online.
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Old 5th May 2012, 11:38   #150
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Quote:
Originally Posted by VeyronSuperSprt View Post
Fiat started its joint venture with Tata based on an editorial by Hormazd Sorabjee in Autocar India, about 7 years ago where he commented on Fiat's misfortunes and suggested that it would be a good idea for Fiat to team up with Tata as they have synergies / complementing strengths.

The fact that Fiat went ahead and signed up with Tata on the basis of this editorial indicates a serious lack of management depth within Fiat – it is one thing to run a magazine and put down suggestions from the top of your head but quite another to take up that idea and execute it . Fiat was probably desperate and clutching at straws at that point in time and this editorial must have been one of the straws. The management depth required to run a automobile manufacturing / distribution / selling enterprise is substantially more than running an automobile magazine – Fiat seems to have realized this ten years after.
It wouldn't have been so. Sometimes when big decisions are about to be taken, news is leaked to respected journalists. This brings back real world feedback. Based on that decisions are taken.

OFF -TOPIC: Remember the 'sacking' of National Security Advisor MK.Narayanan last year. A week before that, a series of special articles came in IE criticizing him for all the recent intelligence failures. Now do we take it as, the PM sacked him because of the 'suggestions' of IE editor (or) the other way round?
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