[amit]

An interview of Paolo Castagna done by rediff as recently as Sept 16, 2005. Tried to read between the lines about Fiat Spa possibly closing Indian operations but could find any hint of that. Seems like Fiat knows whats wrong and what needs to be done. So what's stopping them?

[greatDrive]

Guys,
Do we have any news on this..
I haven't heard anything on CNBC after friday night.

:(

[typeOnegative]

I have not heard anything on any other business newspaper/report. What is going on? Can we sue CNBC?

[RX135]

a) It can be a hoax.
b) It can be true, but Fiat India is clearly not aware of. Anyway, the news said it heard from its sources, so you never know. Good idea will be to wait for entire week. Interesting, Fiat India said that they are not aware of it, but didn't deny it vehemently or dismiss it as rumour.

After signing MoU with Tata, there may be some changed equations, such as rolling out cars from Tata production facility, while closing down its own operations, or Tata marketing Fiat cars in India. Well, again this is all speculation, so better to wait and watch.

Italians may have other things in mind, but for me, going out of booming economy like this means a major business loss. Look at Suzuki. India is their single largest market and consumer of Suzuki cars. They pitched in strongly in India, and are reaping harvest now.

[hasopi]

From an Insider ..its going to be premier automobiles model for FIAT in India.

TATA will manufacture & market FIAT products in India.

[tsk1979]

Imagine, Tata Palio to hit the streets soon!
Or maybe they will replace the indigo boot with petra's

[typeOnegative]

That, TSK, might do wonders. But I don't know how they will position it (the Tata Palio). Unless, they leave the Indica petrol at the bottom of the pile and use the Fiats as top end versions. Same about the Indigo petrols. And what about the styling? And about the diesels variants? That the Petra D may not sell as much is sure. With a Tata backing the Palios may start selling though.

[tsk1979]

If Tata takes on to selling Fiat in india,
1. Tata Petrol may be phased out, with indica petrol getting a Palio 1.2 engine.
2. Tata may use fiat tech on its 1.4 base

the latter option makes more sense. Having driven both palio 1.2 and Tata petrol, i did not find much difference in both except that the fiat feels more refined. But as for drivablity the fiat was sluggish compared to Tata. Autocar numbers also say Tata is quicker than the fiat.

So tata can use a good head on the 1.4 engine and get a 80+bhp indica and a 90+bhp indigo out with fiat tech. If they can maintain the fiats refinement levels Indica may become a viable option to swift and getz and it could be priced 30K lower than both.

This option seems more likely because this is how tata has operated in the past. They do not plonk others engines in their vehicles, they learn by dismantling other cars. Tata desperately wants Fiat tech because currently tata is thought to be a maker of good tractor like cars. To shed its image it needs a good petrol engine. Infact tatas interest in motorsports and like means they are itching to be in the petrol arena too. And the reason is not hard to find.
Remeber magma, the luxury car which never materialized. Tata wanted to give merc like fetures at 7Lac price. Maybe they return with Aria and Magma with fiat petrol engines.

[hasopi]

as per Fiat this is a misinterpretation of facts
by CNBC. This is indeed true that Fiat is deciding on shutting down Kurla
(Mumbai) plant, but the operations would start from Ranjangaon (Pune) for
the sake of operational efficiencies and proximity to suppliers. In fact
they mentioned that there is denial of rumor on NDTV 24x7.

Expect a press release from Fiat on denial of this news shortly.

[hrag]

Originally Posted by tsk1979

If Tata takes on to selling Fiat in india,
1. Tata Petrol may be phased out, with indica petrol getting a Palio 1.2 engine.
2. Tata may use fiat tech on its 1.4 base

the latter option makes more sense. Having driven both palio 1.2 and Tata petrol, i did not find much difference in both except that the fiat feels more refined. But as for drivablity the fiat was sluggish compared to Tata. Autocar numbers also say Tata is quicker than the fiat.

I seriously hope it is the latter - felt the same way about the Palio 1.2. It is sluggish but very refined. Both these remarks are with respect to the Indica.

[RX135]

Originally Posted by hasopi

Expect a press release from Fiat on denial of this news shortly.

When will Fiat India learn to respond "quickly"? If all the talk was about shifting to Ranjangaon facility, then there is hardly anything new. Looks like there is more than what meets eye, unless it is yet another cheap "byte" hunt by CNBC.

[greatDrive]

When will these news channel learn from there mistakes. This news would have already done some damage to the company.
I think these press people over speculate and comes on conclusion very soon.
I think there should be a way to sue these news channels

[sandeepmdas]

Originally Posted by RX135

When will Fiat India learn to respond "quickly"?

Originally Posted by greatDrive

This news would have already done some damage to the company.

Perhaps Fiat's top bosses are not interested in India-based TV channels. Perhaps they will be watching only RAI. Or perhaps MTV and FTV are their fav TV channels.

Or perhaps it was the weekend.

That's why their press release (hopefully, like this, as no one wants them shut down) -"we are closing down our Mumbai operations and shifting our production to Ranjangaon"- got delayed. And delayed.

Hopefully, they will realease a statement before this Xmas.

[GTO]

Boy, I have never seen as much speculation on any other car company - whether its a company's existence, new product launch or otherwise - as on Fiat India.

Add a good PR department to the list of things that they desperately need.

GTO

[hell_rider]

true...this speculation is getting too much.

can we please list out just the known facts here in order of importance and discuss the ramifications ?

1. Is Fiat shutting down the Kurla plant for sure ?
2. How exactly are the Tatas fitting into the equation with respect to FIAT's Indian operations ?
3. Will the Tatas just be sourcing the palio petrol engines or will they be building the cars also ?
4. Will the Tatas be only concerned with the petrol based technoligies FIAT has to offer or will they also be dabbling in FIAT's diesel technologies ?
5. Where will the Tatas be building the Palios, if at all ?
6. What are the implications of the above for FIAT's indian customers ?

i realise most of above points have been discussed but there are so many different opinions, its starting to get confusing.