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Old 23rd January 2007, 12:00   #1
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Default Fiat to Buy-Out partner and go 100% sub - wonder how this will panout with Tata's?

Source: ET..
Fiat may buy out JV partner here


VIVEK SINHA & SANJEEV SHARMA

Fiat is all set to bring down the curtains on its erstwhile partnership with Doshis. Fiat has received foreign investment promotion board (FIPB) nod to subscribe to the entire share capital of Fiat India Automobiles (Fiat India).
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Old 23rd January 2007, 16:23   #2
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How much stake did the Doshi's have in Fiat India? 5-10%? I don't think this decision is going to make much of a difference. Still, it's good to see Fiat slowly taking it's Indian business more seriously but then I guess since they have set their home market business in order they can now concentrate totally on other high growth markets.
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Old 23rd January 2007, 16:36   #3
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I think Doshis had around 2% stake at FIAL. The only thing is that FIAL is fully Fiat's now. From my limited knowledge of these things, I think that Doshis need not sit in the board meetings when Fiat and Tata discuss things and take decisions. Whether this is anything significant, I have no idea.
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Old 23rd January 2007, 16:57   #4
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Fiat Italy had acquired controlling stake in Fiat India (then known as Premier Auto?) several years back by buying Doshi's family's shareholding. After that only a token shareholding remained with the family and the same is being acquired now.

Nothing significant about this development from Tata's point of view. Who knows Tata themselves might have insisted on this.

Doshis did no good to the Fiat brand name (or for that matter to the Peugeot brand name - remember the PAL-Peugeot disaster?). It's good Fiat got rid of them.
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Old 23rd January 2007, 17:28   #5
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I hope there will be a little bit of shake up in their dealerships and service network too. That will surely do a whole lot of good both too FIAT and consumers.

BTW, does any one know what kind of service reputation Fiat has world over ?
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Old 23rd January 2007, 17:56   #6
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Quote:
Originally Posted by sreenivass View Post
BTW, does any one know what kind of service reputation Fiat has world over ?
Cant comment about the world, but in UK its not very different from the reputation they enjoy over here,whether it is in terms of the quality of service or reliability of the cars.I regularly log on to www.fiatforum.com, which is a U.K forum for Fiat lovers.You will realise that Fiats name is in the dumps as far as service is concerned.Even the reliability of cars is suspect,mostly with electricals.And the list includes the Grande Punto.

Last edited by roms : 23rd January 2007 at 17:58.
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Old 23rd January 2007, 22:56   #7
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It surely will not have an impact on the relationship with Tata's...The Doshi's as said earlier had just an token stake,which would have been bought out sooner or later....and who remembers them contributing to any of their JV's...their service was no better...the erstwhile BCMA (Bombay Cycle Motor Agency) dint do any wonders for FIAT or Peugot's reputation in India
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Old 24th January 2007, 02:08   #8
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Fiat's Indian journey amazes me for one!first with Doshi's(PAL),then with Tata motor's,now this.

They have been in India for about a decade now,while many player's comparatively new to the Auto word(Hyundai,Daewoo etc)came on their own and did everything ground-up and succeded,

Why is a world player like Fiat despite having such desirable products struggling to get their act together is a prime question which is truely baffling me! They are resorting to associations after association's with the latest being above mentioned.

My observation is they may have looked for an alternative to the present association with Tata's because Tata's commitment in assistance towards marketing Fiat car's is a well known joke in the Industry,

And Fiat has their own seperate set up toward's sale's and service for their diesel range,means that that they have to manage two show's instead of one-No comprahensive solution for their requirement.

They(in my opinion)require to look much deeper than again looking a quick and an easy solution out every time.
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Old 24th January 2007, 21:39   #9
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Rightly said.... FIAT has always been looking into a quick success... What a tragedy FIAT is now going to face, Swift with very own multijet out.... Building the world class engine, they have come this their way... Its all coz of FIAT itself... Dont know how much FIAT will be getting out of TATA JV, all I can see is TATA got a promising technology access to survive for years...

The feeling of TATA badge on Punto, Linea freaks me out... God plz ve some mercy for FIAT

Cheers
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Old 25th January 2007, 01:22   #10
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Well said,everyone has a promising and exciting products i:e Maruti has Fiat's Multijet and Look how public is waiting for its launch!!!

Tata is getting away by actualy treating Fiat with utter complacency by comparing and selling THEIR product!!!

Now they are buying out their partner's and heading toward's MAHINDRA-RENAULT-TATA-FIAT........(whew) set-up!!!!!

You are right about praying to God to help them,considering they are a respected manufacturer's with hardcore enthusiast product's on offer.

Hope they regain their international touch and see a way away from being treated like a upstart company from local manufacturer's and regain the aura of being a company which own's brand's like Ferrari.
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