Fiat says Tata, all set to launch brand stores

[amtak]

To all those asking "who would invest in Fiat dealership?" should remember that there are people who have invested in Force Motors (Exclusively for Force 1) and also Premier (for Rio) dealerships.

I am sure, in each city, they can expect atleast 1 person who might be intestered in setting their dealership. It is a very slow process, but may yeild results.

[el lobo 6061]

Finally the cat is out of the bag. Read today's newspaper and following points were pointed out by their VP Marketing.

• Fiat has decided to open up its own dealership because of decreasing sales YoY.
• New dealership which will be opened will be 3S facility, sales, service & spares.
• Fiat currecntly has 67 dealership in top 45 cities, which are in collaboration with Tata.
• Fiat will make the complete transition of having its own dealership in most of the cities by 2015.

A right step in the right direction, but this eventually take lot of time. Fiat needs to come with refreshed models rather than just face lifts and provide Linea with 1.6 L Multijet engine to see some progress.
Best of luck to Fiat for its future endeavors.

[Pri2]

Thank god FIAT finally realized what was going wrong!

Here is the news paper clipping:



Fiat to end dealership JV with Tatas
Pankaj Doval TNN

New Delhi: Continued poor showing in the Indian market is set to see Fiat completely exit joint-branded showrooms with Tata Motors as the Italian car major makes a renewed push to revive sales. While it will make the transition in the top 20 cities by 2015, the rest of the joint-branded dealerships will be disbanded thereafter.
Tata Motors is currently responsible for the sales and service of Fiat cars in India and the transition comes at a time when the foreign partner is battered with poor standing for avery long time. “The new Fiat dealerships will be 3S facilities (sales, service and spares) and will display Fiat’s brand identity and style quotient to the Indian market,” Ravi G Bhatia, V-P (Commercial) of Fiat India Automobiles, told TOI here. “We will be then like any other independent car brand in the country.” Tata Motors did not reply to a questionnaire on the matter.
Fiat sales were down 15% last fiscal at a paltry 21,066 units, alarmingly in a year when the overall car market had expanded 30%. In the April-November period of 2011-12, the company’s car sales are down a massive 31% (at 10,351 units) even though the overall market is lower by just 3.5%. Bhatia said there were a total of 67 Tata-Fiat joint-branded showrooms in the top 20 cities. “While we hope to make the transition at 45 dealerships by 2014, all the 67 will be covered by 2015. Anything beyond that will follow after that.”
The company will approach existing Tata dealers for the new retail push. “The idea is to involve them as we move to new locations. This is a joint decision of Tata Motors and Fiat.” The exercise is expected to cost around Rs 270 crore, which will be borne by the dealers.
Bhatia said Fiat’s international architect has been engaged for the design and layout of the new dealerships. “Also, we plan to have a small cafe at the dealerships.” The first independent dealership will come up at Hyderabad in the next two months.
The transition is based on the feedback of the customers, Bhatia said, adding that there was a need to have a “Fiat experience” at the retail end. Fiat had hired global consultancy firm Accenture as well as auto research firm JD Power to suggest ways to improve its position in India.
The cities that will form part of the first wave of transition will include Delhi, Mumbai, Kolkata, Chennai, Bangalore, Pune, Jaipur and Hyderabad.
Fiat and Tata Motors have a50:50 joint venture — Fiat India Automobiles — for manufacturing cars and engines for both brands at a factory in Maharashtra. Apart from the manufacturing tie-up, Fiat has entrusted Tata Motors for distributing and selling its cars through its dealerships that also provide after-sales support. This is where the problem lies, according to most analysts.

[abhi413]

I hope this is not too little too late. In any case, this IS a step in the right direction and would be welcomed by all - existing customers, prospects as well as Fiat enthusiasts.

Now if the powers that be at Italy (or even in Pune) are reading this, the only logical next step is to introduce a few more models. It is inhuman to expect the Linea and Punto alone work wonders for you in a Billion strong country. There is scope both below and beyond these cars' segments. Maybe even in between, for that matter.

God bless Fiat. Maybe there is still hope with you. Hell, if Sachin can get that 100th century someday, why can Fiat not be revived?

[veyron_head]

Okay! Finally Fiat woke up! Way to go!!

Fiat has tried multiple times in the Indian market but hasn't made a mark yet, in spite of their great products. A Fiat-only A.S.S channel will sure bring in volumes.

[AbhiJ]

Gutsy decision... and a correct one.

They always had decent products. Hopefully now they will be manufacturer and maintained better...

However, if I understood correctly... They are going to ask TATA dealers to set up FIAT dealerships...

Two problems with that,

1) The dealer will be financially better off opening another branch of his tata dealership rather than a Fiat one...

2) Unless the company is VERY strict, the insincere attitude seen at most Tata service centres will spill into Fiat service centres. Because common owners might result in exchange of manpower and management in between the two..

[bosporus]

The scary part is, they're saying no new cars this year. I don't see why anyone would want to invest in a Fiat car when is the reputation is that these are flop cars, especially in a market where we probably care more about the resale value a couple of years down rather than the inherent strengths of the car. If nothing else, I think Fiat needs to refresh the existing models from the exteriors - not to say that the interior & feature refresh wasn't badly needed.

[architect]

Originally Posted by AbhiJ

However, if I understood correctly... They are going to ask TATA dealers to set up FIAT dealerships...

You are correct as far as Delhi is concerned, the exclusive FIAT showroom opened recently and the soon to be opened FIAT service centre are both owned by a prominent Tata dealer in the NCR. No idea about the one at Pune.

[kaks15]

Originally Posted by Pri2

Thank god FIAT finally realized what was going wrong!...

Right story wrong analysis by TOI.
Fiat asking the existing dealers to open up fiat exclusive showroom but the sales from these showrooms will also be handled by Tata sales managers. ditto for service. its not a JV end its in line with the strategy from Tata guys to split the new dealerships to uv exclusive or nano exclusive or fiat exclusive.
I know a guy at oberoi motors who is currently handling the fiat cafe in CP.

[fiat_tarun]

Revised Tata JV gives focus to Fiat distribution

Fiat India is now looking again to revamp its distribution network in a revised joint venture pact with Tata Motors. According to sources, the auto major is also working on enhancing its distribution network, independent of the partnership with Tata Motors, reports CNBC-TV18's Ronojoy Bannerjee.
The reworked JV between Fiat and Tata Motors would include a new distribution network for Fiat, discontinue supply to forty joint dealerships, cut supply to joint dealerships in twenty cities. Sources also added that nearly forty Tata-Fiat dealerships in twenty cities would be affected.
Sources also explain that Fiat will encourage dealers to open exclusive Fiat outlets and mulls hiking the dealer margins to 8.5% from 5%. Fiat hopes the new distribution strategy will boost sales. Sources also said that the auto major plans to open twenty exclusive outlets by end of 2012.
When contacted, the Fiat India spokesperson declined to comment.

Looks like Fiat India is slowly waking up...

[pganapathy]

Originally Posted by Pri2

The company will approach existing Tata dealers for the new retail push. “The idea is to involve them as we move to new locations. This is a joint decision of Tata Motors and Fiat.” The exercise is expected to cost around Rs 270 crore, which will be borne by the dealers.

The transition is based on the feedback of the customers, Bhatia said, adding that there was a need to have a “Fiat experience” at the retail end.

Apart from the manufacturing tie-up, Fiat has entrusted Tata Motors for distributing and selling its cars through its dealerships that also provide after-sales support. This is where the problem lies, according to most analysts.

I have no idea who thought up this wonderful idea, that since we are going to separate the dealership from the people that are screwing it up in the first place, let us get them involved and have them invest in this.

Which Tata dealer will want to open a separate Fiat dealership when they are unable to sell Fiats in their present dealership itself. Unless of course the statement of getting the dealers to bear all the financial cost is not entirely true.

Anyway, there obviously has been some realisation about the mess Fiat are putting themselves in with this JV. Let us hope it is not too late and they are able to improve things quickly without doing what they did earlier and literally pulling out.

Also, they should get serious about using India as a hub and start manufacturing global cars of all ranges here. Please Fiat, see some sense and fix things before it becomes too late for you.

[architect]

Originally Posted by pganapathy

Which Tata dealer will want to open a separate Fiat dealership when they are unable to sell Fiats in their present dealership itself. Unless of course the statement of getting the dealers to bear all the financial cost is not entirely true.

The Fiat Cafe and the Fiat Exclusive Service Centre (being planned) in Delhi are both owned by a current Tata Dealer. I suspect it will be the same for some other cities.

Regarding finances, all dealerships bear the financial costs for setting up the dealership as well as put in huge amounts of money (running into crores of rupees at times, as I have heard) in cash and security for running the dealership.

[Fiat&Me]

I am bit worried about that past should not repeat. When Fiat was having tie-up with PAL, after shutdown of PAL there were no service stations for Uno for almost a year.
Again when FIAL tied up with Tata in 2004, suddenly all previous dealers are closed and again for few months there were no service stations for Palio/Petras.
If this happens again in 2012/13 that neither FIAT will have their own strong network of service stations nor Tata dealer will service Fiat cars, things will more worse for Fiat. THe best option is continue Tata-Fiat joint dealers/service stations as it is and start exclusive Fiat showrooms/service stations. Let there be a competition between Tata-Fiat and Exclusive Fiat delaership for numbers of Fiat cars.

[pganapathy]

Originally Posted by architect

The Fiat Cafe and the Fiat Exclusive Service Centre (being planned) in Delhi are both owned by a current Tata Dealer. I suspect it will be the same for some other cities.

Regarding finances, all dealerships bear the financial costs for setting up the dealership as well as put in huge amounts of money (running into crores of rupees at times, as I have heard) in cash and security for running the dealership.

I agree and understand that this is the normal procedure. My point is that if the current dealerships are not selling a large number of Fiat's, where is the financial logic in opening a separate Fiat dealership. The present set up is a lot more cost effective for the dealer. He gets to sell both Tata and Fiat cars from the same space. It is like he is an independent dealer for two brands (Tata and Fiat). Which is why I asked if Fiat are not perhaps subisdising the cost of these new dealerships.

[rameshnanda]

Originally Posted by pganapathy

I have no idea who thought up this wonderful idea, that since we are going to separate the dealership from the people that are screwing it up in the first place, let us get them involved and have them invest in this.

I have different dimension to this from my point of view.

One of my friend went to M&M dealer "India Garage" in Chennai just to see the XUV5OO. He was astonished with the showroom experience there. He was received well. Given a drink. Taken to a SA who politely explained all details about XUV5OO. They offered TD (the TD vehicle was super clean). After coming back given hand issue and drink again to relax. All this happened even when the booking for the XUV is not taken at all. Why am I talking about this M&M dealer? Because this dealership is from the VST group which also is the dealer for Tata-Fiat. But, when you enter VST motors to see Fiat cars, I am damn sure that one in thousand will have good experience. The inference here is, its the guidelines and process put by the actual manufacturer which make the dealership experience better.