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Old 3rd May 2012, 22:11   #76
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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This might help paranoia from taking over and hurting the brand even more.
Exactly that's what I said about their press release. They should either have formed the company and appointed dealers/service network or stated explicitly that this divorce will come to effect from a date stipulated.

Now the damage has been done.

Perhaps the separation idea was mooted by TATA and not FIAT as most of us assume here. There's a good chance that Fiat was forced to part ways because Tata is no more interested in co-branding for some reason. None other than Mr. Ratan Tata has accused (rightly) Fiat less than 6 months back for their small product portfolio, lack of enthusiasm and their inability to launch new models as a routine.

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Old 3rd May 2012, 22:12   #77
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Fiat India should appoint a board member of their company from one of us BHPians ! No, seriously. This way Fiat can atleast tap into a bigger market segment rather than finding 1 buyer out of 10 who appreciates the build, ride et al.

Fiat fans in India are more bothered about Fiat India itself about its future and how the after sales experience is going to be once they become independent.

Hope Tata doesn't shut Fiat out of the backdoor like Mahindra did to Renault and inturn lost a few thousand crores but got a HUGE bargain in terms of a car i.e; Logan.

Fiat has to depend on Tata for another 3 years atleast until full fledged Fiat India dealers and workshops are appointed.
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Old 4th May 2012, 01:11   #78
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

The fact that Fiat is moving away from TATA is definitely a good move.One wonders what the Fiat management were thinking when they first joined hands with TATA. When two brands are sold from the same showroom one is bound to suffer. One is left wondering why an innovative company such as Fiat had to fall back on a company whose reputation for service is just about average.
It's about time all the money they have made and continue to make from the Multijet joint venture is pumped into building up a sales and after sales service infrastructure of their own.
As mentioned elsewhere on this thead there is ample potential in the after sales service market to generate revenues from the Fiat models already on the roads provided the service centers have quality staff , adequate stocking and VFM pricing for spares.
This will certainly help to repair their reputation and most certainly add to the sales of vehicles.
regards,
Ashok
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Old 4th May 2012, 01:28   #79
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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's a very good move from a sales point of view, The TATA dealers did give step motherly treatment to FIAT customers (experioenced first hand and that too when punto was launched). From the Service point of view if they invest heavily and atleast come to speed in metros they would have won half the battle.

I noticed that at the same price point a punto is better loaded than a swift. So they have always had VFM on their side.

A lot of extreme views here about FIAT, I for one feel they'll be more successfull in the years to come. Lets hope FIAT does a Yamaha in India (In both Product portfolio and service)

Move sends out a positive signal to current/prospective owners that FIAT means business here.

Hope to see PANDA soon in india.
Setting up cafe's is also a good move, eagerly awating the one coming up in Pune.
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Old 4th May 2012, 02:31   #80
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Step1: Advertise to the Indian Public that FIAT is exiting India and that its partners will take care of its cars. AFAIK, logans are still serviced at Mahindra service centers. I know this is possible, since mahindra still manufactures the logan's poorer clone verito. But, whatever!

Step2: Beg/threaten/reason with TATA to take care of FIAT cars until it re-emerges from its ashes

Step3: Come back into the Indian market as Jeep/Chrysler with all guns blazing, after setting up independent showrooms and service centers. VW striding along without batting any eyelid to Skoda's pathetic service history, like they have nothing to do with each other is a prime example.

Also, that way, when you are considering buying a Chrysler car in 2015, your uncle won't scare you away with nightmare stories about his Premier-Padmini FIAT car.

Step4: Hire management buggers who actually understand the target demographic

Step5: Begin by launching a frugal diesel, automatic hatch followed by a diesel, automatic mini-SUV (like the Yeti) or whatever the market actually lacks/wants

Step6: Go bonkers with marketing, like VW did.

This may be a dim-witted strategy, but it sure does beat FIAT's current strategy. In Rome, do as the Romans. Ironically, the Romans have to do/think like Indians now
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Old 4th May 2012, 09:08   #81
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Originally Posted by ashwin489
Step1: Advertise to the Indian Public that FIAT is exiting India and that its partners will take care of its cars. AFAIK, logans are still serviced at Mahindra service centers. I know this is possible, since mahindra still manufactures the logan's poorer clone verito. But, whatever!

Step2: Beg/threaten/reason with TATA to take care of FIAT cars until it re-emerges from its ashes

Step3: Come back into the Indian market as Jeep/Chrysler with all guns blazing, after setting up independent showrooms and service centers. VW striding along without batting any eyelid to Skoda's pathetic service history, like they have nothing to do with each other is a prime example.

Also, that way, when you are considering buying a Chrysler car in 2015, your uncle won't scare you away with nightmare stories about his Premier-Padmini FIAT car.

Step4: Hire management buggers who actually understand the target demographic

Step5: Begin by launching a frugal diesel, automatic hatch followed by a diesel, automatic mini-SUV (like the Yeti) or whatever the market actually lacks/wants

Step6: Go bonkers with marketing, like VW did.

This may be a dim-witted strategy, but it sure does beat FIAT's current strategy. In Rome, do as the Romans. Ironically, the Romans have to do/think like Indians now

Oh! Time for desperate measures, is it ?!

Some facts to know about FIAT :
1. FIAT is among the TOP 10 car manufacturers in the world. No. 1. In Brazil ,one of the largest car markets.
2. Owns Ferrari, Maserati , Chrysler , Alfa Romeo, Lancia, Abarth .
3. People who gave CRDI technology to the world.
4. Indias unofficial National diesel engine is FIAT MJD. (Suzuki continues to use FIAT engines at the cost of severing ties with VW )
5. The winner of the best engine Awards in almost all categories in the past 2 years is Fiat MultiAir. Another innovation to the automotive industry.

6. Most importantly, I drive a FIAT Linea and have the most awesome experience in last 25 month of owning it . A petrol version that has done 63000km in 3 years .

All the problems are mostly with people who don't own the FIAT but like to hear a piece of FIAT news and then suggest strategies to rescue the company. And yea there have been service issues with TATA A.S.S. and that's where this new strategy was born to seperate the service centre exclusively to FIAT owned company. But, on the other hand what has SKODA done to improve its image of pathetic A.S.S. or for that matter VW.

The fact is that Sales numbers count . A Ford Figo has turned fortunes for FORD purely on Sales count. All other matters of spares and service don't matter now. So, we won't talk about strategies to rescue that company here. We will focus on our old favourite - FIAT.

I am sure that most of those who have given Thumbs down to the Recent news, have elsewhere in the forum regularly panned the TATA A.S.S. and been suggesting that FIAT should do it alone to rescue itself. And now when it's happened , it's too late is the verdict.
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Old 4th May 2012, 09:28   #82
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Basically, Fiat is now going to start all over again. FOR THE NTH TIME! This is NOT what you want your potential customers to read in the newspapers every other year. The one who is going to spend 5 - 10 lakhs on a car wants to do so from a STABLE company. With Fiat, there is just way too much inconsistency. Lack of stability & consistency will only further damage the brand, whose reputation is already severely dented.

The question is : How many comebacks can a brand sustain? While the competition goes from strength to strength, Fiat appears to take a step back ever so often.

Importantly, with a weak home market (i.e. Europe), just what kind of resources can Fiat allocate to India?

Here's an article that hits the nail right on the head.
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Old 4th May 2012, 09:36   #83
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Fiat hands out its engines to Tata and to Maruti.

Maruti makes the diesel engine smooth and refined like a petrol one.

Tata makes it like a truck's.

End of the day , Fiat is trying to bail out and re-enter all over again but as GTO pointed out , this is disastrous for the Brand image. They will definitely need to work on their marketing apart from R&D.
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Old 4th May 2012, 09:40   #84
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

I don't think that this move by fiat is going to be successful. With Tata, at least they were surviving.
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Old 4th May 2012, 10:01   #85
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

They should just accept the current situation as reality and not start off again by having blown up estimates. They should have more FIAT caffe's give a good buying/servicing experience and be happy with around 3000 cars per month . They are going strong with engine sales anyways. As for their products, they should seriously look at a better 1.2L engine. May be a 2-door (zen carbon like punto) for a cheaper price aimed at <25 crowd
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Old 4th May 2012, 10:25   #86
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

all these months we wanted Fiat to move away from Tata dealership so that the premium Fiat customers don't have to mix with 'mass' Tata customers (with all due respect to them). we also complained how the sales exec tries to sell a Tata car to someone who has walked to check out a Fiat car.

And now that Fiat has actually taken this step, they are criticized. I feel Fiat's guts need to be admired. We all said they can't do it as no one would want to invest into a Fiat dealership. But Fiat doesn't think that way, and over a period of time dealerships will surely pop up.

With sales sinking, Fiat had nothing to lose, by moving away from Tata, and this is the last card Fiat has. If it can't turn around after this, it will surely pack its bags.
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Old 4th May 2012, 10:31   #87
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Does this mean that we cannot get FIATs serviced at TATA dealerships anymore? If not with immediate effect, when does this actually come into picture?
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Old 4th May 2012, 11:02   #88
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

Its a very good move by Fiat to prove to the Indian market that Fiat is here to stay no matter what they have to do.Though not sure about new customers but definitely Its very good news for current Fiat cars owners like me who can now breathe easily for at least next 5-6 years.However only time will tell if this move is good or not,but the history is somewhat disappointing for whatever Fiat has done previously.
I had a horrible experience at TATA showroom when I went to buy Linea 2 months ago with my family.I wanted to write it to Fiat higher-ups but just don't have the energy to write them.Now after this I wouldn't have gone to TATA showroom again to buy another Fiat car.
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Old 4th May 2012, 11:10   #89
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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all these months we wanted Fiat to move away from Tata dealership
Who is we? I certainly didn't! While I'm no fan of Tata's after-sales (having experienced it myself with the Indigo), I continue to insist that sticking with Tata dealers made a LOT MORE SENSE than starting from scratch in year 2012.

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so that the premium Fiat customers don't have to mix with 'mass' Tata customers
Premium? Tata has products that are way more expensive than Fiats (including the Aria, Safari etc.). The Safari sells more than the Linea or the Punto. Also, the price difference between a Vista <-> Punto or a Manza <-> Linea is not so much that the Fiats suddenly become premium. The price difference is lesser than the Swift & Alto (as an example) which are successfully & satisfactorily sold in the same showroom.

If Fiat buyers were expecting "premium" service in a Tata dealership, well, that just explains the irony in the mismatch of expectations & delivery.

Quote:
we also complained how the sales exec tries to sell a Tata car to someone who has walked to check out a Fiat car.
Agreed. But it is simpler to work this issue out, than start an all new dealership network! If my toe hurts, the last thing I'd do is chop my leg off!!

Last edited by GTO : 4th May 2012 at 11:11.
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Old 4th May 2012, 11:15   #90
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Default Re: Fiat revvs away from Tata dealerships. To set up its own distribution network

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And now that Fiat has actually taken this step, they are criticized. I feel Fiat's guts need to be admired. We all said they can't do it as no one would want to invest into a Fiat dealership. But Fiat doesn't think that way, and over a period of time dealerships will surely pop up.
It's not just guts, it's a calculated move.
This decision was not taken overnight. They were doing a market survey for the past 15 months with the help of a reputed third party.
If Nissan can sell 3000 odd cars per month with less than 20 dealers and 3 models, why can't Fiat?
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Premium? Tata has products that are way more expensive than Fiats (including the Aria, Safari etc.). The Safari sells more than the Linea or the Punto. Also, the price difference between a Vista <-> Punto or a Manza <-> Linea is not so much that the Fiats suddenly become premium.
IMO comparing the price of an SUV with a B-seg hatch and it's sedan derivative is wrong.
Just because the price is higher doesn't make a product 'premium'. The 'premium'- brand image is in the minds of the consumer and not in the price tag. Just like how a Fabia from Skoda is a more premium brand when compared to Punto in India, even it's cheaper than Punto. Likewise the Punto/Linea are premium brands when compared to a sub-brands like Vista/Manza from Tata Motors. To a common man Tata car brand is synonymous with Indica and that carries that heavy tag of the 'taxi image'.

Last edited by Daewood : 4th May 2012 at 11:42.
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