The Italian Connection Part II - Tata and Iveco sign deal

[khanak]

Mumbai: India’s largest automobile company Tata Motors, which signed an agreement with Iveco in February, is planning to distribute its trucks through the Italian company’s worldwide distribution network. In a reciprocal arrangement, Tata dealers will sell select Iveco models, especially their light commercial vehicles in India. Tata Motors will use Iveco’s latest generation engines in its new trucks expected to be launched soon by Tata Daewoo Commercial Vehicle Company in South Korea.
Tata trucks, including the highly successful one tonne Ace, will be available through Iveco’s sales network in markets like Brazil, Argentina, Russia and other markets where the Indian manufacturer has no significant presence. Tata will get to use Iveco’s established service network in these markets. In addition, Tata will also update its cabin and chassis design on the new World Truck Platform to incorporate Iveco’s inputs. The World Truck series is expected to hit the markets in 2008.
In lieu, Iveco will bring its highly successful range of light commercial vehicles and market them through Tata’s network. These vehicles are likely to be assembled in the country though plans have not been firmed up yet. Iveco will also be the engine supplier of choice for the higher end models that Tatas are planning to launch in the next few years. However, there is still no plan to bring in Iveco’s heavy commercial vehicles, the current flavour of the Indian market, due to their exorbitant cost.
Earlier, Iveco, a Fiat Group company and Tata Motors signed a Memorandum of Understanding (MoU) to analyse areas where they could co-operate. This included developments in engineering, manufacturing, sourcing and distribution of products, aggregates and components. The two companies were to enter into a definitive agreement in due course after determining the feasibility of it all.
Tata’s desire to tie-up with Iveco came at a time the world’s largest truck marker like DaimlerChrysler (Mercedes), Germany’s MAN and Swedish Scania were readying up to launch their vehicles on Indian roads. With the world’s second largest truck marker Volvo already present in the Indian market, Tata Motors strategy was twopronged. It wanted access to modern technology to compete against the new crop of players and newer markets for its existing models to bring in additional sales revenue.
Tata zeroed in on Iveco, when its chairman Ratan Tata was forging a closer relationship with the Fiat group for its passenger car business.

Source - TOI - 10th April 2007

[esteem_lover]

Good. But why isn't tata bringing in the Daewoo trucks ?

[moralfibre]

Here is the road map

[iraghava]

Interesting to see that the main technical partner of Ashok Leyland has joined their arch rivals only a year after terminating their partnership! Let's see how this one works out.

[rahul_intlad]

I think the ashok leyland-iveco alliance was affected due to ashok leyland's alliance with Hino as well and not due to any shortcomings of Iveco.

With the tata-fiat alliance in the passenger segment working pretty smoothly the commercial vehicles segment alliance would also most likely be a favourable one for tata motors.

[directinjection]

The picture is getting really vague and hazy here.

In 2006, Ashok Leyland acquired AVIA, a Czech based European truck company manufacturing medium duty trucks which sell in Europe. AL plans to launch them in India.

Do you guys know which engine powers these trucks? It's the same Cummins "B" 5.9 engine that powers most of the Tata trucks in India.

So, you'll have the same engine powering both Tata and AL trucks, just like FIAT's JTD 1.3 that'll soon power every third diesel car sold in the country. Perhaps it will only be the cab design that'll distinguish one truck from another. There again, the scope for creativity is limited IMO.

Automobile brands seem to be losing their distinctiveness fast and at this rate would perhaps become irrelevant soon.

[rahul_intlad]

But has that partnership broken too.

Ashok Leyland, the flagship automobile firm of the Hinduja Group,said Avia Ashok Leyland Motors and Ashok Leyland (UAE) have ceased to be its subsidiaries as of March 29, following a restructuring of the ownership pattern.

Source:
Zee News - Ashok Leyland restructures business

[directinjection]

Originally Posted by rahul_intlad

I think the ashok leyland-iveco alliance was affected due to ashok leyland's alliance with Hino as well and not due to any shortcomings of Iveco.

Probably not, considering that the AL-Hino collaboration predates the AL-Iveco collaboration by many years.

[directinjection]

Originally Posted by rahul_intlad

But has that partnership broken too.

Ashok Leyland, the flagship automobile firm of the Hinduja Group,said Avia Ashok Leyland Motors and Ashok Leyland (UAE) have ceased to be its subsidiaries as of March 29, following a restructuring of the ownership pattern.

Source:
Zee News - Ashok Leyland restructures business

I doubt that. It was an acquisition by AL, not an alliance. Probably, the restructuring is for administrative/legal reasons. Couldn't open the Zee News link though.

Check out this link: FunBus | Ashok Leyland Fun Bus

[Steeroid]

Originally Posted by directinjection

Probably not, considering that the AL-Hino collaboration predates the AL-Iveco collaboration by many years.

Are you sure? AFAIK, Hino engines came into Leylands in the '90s while IVECO and the Hindujas came into AL when British Leyland (or what was left of it) sold their interest to them.

IVECO officially exited when the Hindujas bought out IVECO from LRLIH, UK - a company that the two acquired together from the Rover Group. LRLIH held 51% of Ashok Leyland.

So now the Hindujas hold 51% of AL - I think.

[condor]

I think the ashok leyland-iveco alliance was affected due to ashok leyland's alliance with Hino as well and not due to any shortcomings of Iveco.

IVECO officially exited when the Hindujas bought out IVECO from LRLIH, UK

Would there be any connection with the Tata-Fiat alliance?

Do you guys know which engine powers these trucks? It's the same Cummins "B" 5.9 engine that powers most of the Tata trucks in India.

No biggie - Cummins focusses on the diesel engines & diesel engine technology.

[Jomz]

Originally Posted by rahul_intlad

I think the ashok leyland-iveco alliance was affected due to ashok leyland's alliance with Hino as well and not due to any shortcomings of Iveco.

With the tata-fiat alliance in the passenger segment working pretty smoothly the commercial vehicles segment alliance would also most likely be a favourable one for tata motors.

AL- IVECO was affected because THe LCV "cargo series" Of Iveco's didn't pick up in market.... Even with 100% localization..

I'm keeping my Fingers crossed on the alliance Btw... IVECO trying to do the same stunt with TaTA... the market is scary about IVECO vehicles now... I wann aknow how they badge it....

[Jomz]

Originally Posted by Steeroid

Are you sure? AFAIK, Hino engines came into Leylands in the '90s while IVECO and the Hindujas came into AL when British Leyland (or what was left of it) sold their interest to them.

IVECO officially exited when the Hindujas bought out IVECO from LRLIH, UK - a company that the two acquired together from the Rover Group. LRLIH held 51% of Ashok Leyland.

So now the Hindujas hold 51% of AL - I think.

No Steer Hino Engines was there in The 80's itself from leyland.. The market was afraid to take it because.. they didn't want to experiment..

In the 90's they came into prominence beacuse of the low fuel consumption Compared to 412 series given before..

Hino was localized Much before IVECO engines.... THe Hosur plant Started in 1980 was meant for producing Hino Engines only.. and The Mighty 680 cu. in engine... Incidentally I've Visted the plant

[directinjection]

Originally Posted by Steeroid

Are you sure? AFAIK, Hino engines came into Leylands in the '90s while IVECO and the Hindujas came into AL when British Leyland (or what was left of it) sold their interest to them.

IVECO officially exited when the Hindujas bought out IVECO from LRLIH, UK - a company that the two acquired together from the Rover Group. LRLIH held 51% of Ashok Leyland.

So now the Hindujas hold 51% of AL - I think.

AL collaborated with Hino in 1985 for licence-production of the 6 litre W series engine which came to be fitted on the regular AL bus chassis. For some reason, the engine was not introduced on AL trucks initially. Sometime later, a chopped-off 4 cylinder, 4 litre derivative of the same engine was introduced in a LCV named Cheetal which didn't succeed. The 4 litre version even found its way to a few crudely built, Jonga-derived SUVs made by the Defence Factory, Jabalpur which even tried to sell them to civilians but without any success.

The Hino engine became famous for its fuel efficiency and is now found on almost all AL products including trucks.

The collaboration with Iveco materialised in 1987 and but the Iveco range of LCVs made by AL appeared only in the nineties.

[Jomz]

Originally Posted by directinjection

. Sometime later, a chopped-off 4 cylinder, 4 litre derivative of the same engine was introduced in a LCV named Cheetal which didn't succeed. The 4 litre version even found its way to a few crudely built, Jonga-derived SUVs made by the Defence Factory, Jabalpur which even tried to sell them to civilians but without any success.

The Hino engine became famous for its fuel efficiency and is now found on almost all AL products including trucks.

The collaboration with Iveco materialised in 1987 and but the Iveco range of LCVs made by AL appeared only in the nineties.

Agree To all except about Cheetah... Cheetah is Short wheel base passenger model.. Still in Prooduction today with The W series Hino Engine..