Fiat India - Management Resigning!

ajmat · 4th April 2005, 16:33

Listen listen listen

Growing market - plenty for all - everyone posts year on year increase providing you have a decent product

Why ain't Fiat there ? It is pretty difficult to lose sales in this market with a good product but Fiat have overachieved in this respect - The car is streets better than an Indigo

A speculation - Fiat pulls out, sells the land in Kalyan, subcontracts car manufacutre in Ranjangaon or sells this plant to VW or Nissan, manufactures the jtd erngine for Maruti

Fiats are no longer sold in Singapore. so so effort in Malaysia

History

deepakhon · 4th April 2005, 16:37

I own a Palio too and I too am a bit scared at the plight of Fiat in India. Worldwide also it is struggling. Hopefully with the introduction of Fiat Croma and Punto, things might change for better. The plight of Fiat in India was not so great when I bought my vehicle, but as RX135 said, I just couldn't resist this machine! With almost a year and a half with my machine, I must say that my decision about the car is good, but let's see how Fiat can do in India from now on. I also work for a multinational s/w company at B'lore, which is not in the pink of its health today. But with the kind of products coming up, we are bullish in the long term. I do hope Fiat pulls up something like this in India. Their idea of being just a technology supplier is just a little different stuff that they are attempting. I am not too sure how much of a success this would meet. If I am not mistaken, Fiat wants to do it exactly the way Mitsubishi is doing currently with HM as their partner here. Well, how well it does, only time can tell. I am keeping my fingers crossed!

RX135 · 4th April 2005, 16:37

Quote:

Originally Posted by GTO

I honestly dont think you are aware, but I am a moderately successful 28 year old entrepreneur heading a team of 40 people in 3 offices. As such, I couldnt care less about commissions.

GTO, you seem to have taken him/his comments very personally.

Steeroid · 4th April 2005, 16:42

Quote:

Originally Posted by typeOnegative

DRC:
Steer:
Much respect. Though I am not a Floyd fan, I am more of a Led Zep and GnR fan. Nice post. Right now, me and my car or on that Stairway to Heaven. After the running in it will be 'Get in the Ring' with Accents.

No offence, I am kidding.

GNR Fan, Live an Let Die if your car is So Fine. Lets not get Estranged over it.

typeOnegative · 4th April 2005, 16:43

Quote:

Originally Posted by Steeroid

GNR Fan, Live an Let Die if your car is So Fine. Lets not get Estranged over it.

ROTFL.

Are you ever in Mumbai? Lets get a few beers together.

Samurai · 4th April 2005, 16:45

Quote:

Originally Posted by RX135

GTO, you seem to have taken him/his comments very personally.

I think most of us didn't get to read those comments since it got edited by moderators pretty fast. So, we don't know what comments GTO is responding to, or why.

Steeroid · 4th April 2005, 16:53

Quote:

Originally Posted by ajmat

Why ain't Fiat there ? It is pretty difficult to lose sales in this market with a good product but Fiat have overachieved in this respect - The car is streets better than an Indigo

IMHO:

Petrol - Yes, if you compare it to the 1.6 but then the two cars appeal to two different sets of people.

Diesel - No way, the Indigo D is more refined, better sorted out and has a similar power (Bhp & Torque) output.

However, the history you have quoted is quite relevant. They're out of most of South East Asia (Malaysia is not a good market for anyone except Proton and Perodua), they're struggling in South Africa, losing share in Latin America and worse yet, they're losing market share at home in Italy.

I dont think anyone needs to pay commissions to bad mouth Fiat - it comes free in most parts of the world.

That being said, let us not get too personal by throwing around insinuations about other writers and/or their cars here. Some of those comments are in downright bad taste.

Steeroid · 4th April 2005, 16:59

Quote:

Originally Posted by typeOnegative

ROTFL.

Are you ever in Mumbai? Lets get a few beers together.

Later this month, perhaps. I'll pm you and perhaps we could all catch up at Geoffreys which is pretty close to the hotel.

ajmat · 4th April 2005, 17:02

Quote:

Originally Posted by Steeroid

IMHO:

However, the history you have quoted is quite relevant. They're out of most of South East Asia (Malaysia is not a good market for anyone except Proton and Perodua), they're struggling in South Africa, losing share in Latin America and worse yet, they're losing market share at home in Italy.

.

The 2 billion that GM paid was a bargain to get out of Fiat. I understand Fiat is losing that much per year

satish_appasani · 4th April 2005, 17:30

I read two news items in the recent ET, though on different days.

1. ICICI JV looking for a stake in Fiat India. This was a positive note. Though the two parties denied the statement, the news included who is advising each party. Citi group is advising Fiat. And as we have been hearing for some time, Hindujas are also looking for a pie.

2. This is a negative news. Top management of Fiat India moves out. The reason was better prospectives.

After reading these two items, I feel more positive about Fiat India. Better than before. Positive because there are companies who believe they can make money on Fiat's products and want to buy a stake in the operations. The later news did not have much effect. It also mentioned that the managers are quitting for better opportunities. In these days of competition, every company tries to pick people from their competitors. In the current situation, Fiat may not be a good pay master. It's obvious if some XYZ company offers a better pay, people will quit.

When Mitsubishi can still hang around, Fiat with better models and better target market can continue their business. Also aren’t Fiat’s current sales better than Mitsubishi’s?

LLL · 5th April 2005, 08:16

Well fiat actually is loosing because of poor management and hence its a good thing that the management is moving out. Probably someone more sensible might replace them and turn around their India operations.

To turnaround, i believe, fiat needs to do the following things:

1. Reconsider their position in Indian market. To succeed in India, you need to have a successfull product in A (maruti) , B(maruti, Hyundai, tata) or C(ford, tata, Honda) segements. Fiat doesnt have a scorcher in any of these. Fiat should dig deep, look at their entire line and launch a product in each segment, keeping in mind as to why people buy these cars.

e.g Tata talks about 1 lakh car..how about fiat using its vast experience/footprint and come up with a 1-2 lakh car. Tata/Maruti/Hyundai - please pack your bags and leave...

2. Target special profiles - come out with cars which are customized for seniors, families, disabled people etc, no manufacturer has any custom vehicles for these segments. These customers are out their for fiat to grab....

3. repair their bad reputation, which is because of their bad ASS.

4. win back the customers - offer 100k km warranty, all india roadside assistance, free service camps, upgrade offers, a certified used car program, buyback guarantee....show that fiat is going to stand behind its cars. A buyback program would be the best bet...

sunil · 5th April 2005, 09:16

Here is the latest on FIAT from the insider....

Ashoka Leyland (AL)will be having 38%, ICICI 31% & FIAT 31% stake in th company.

The agreement with this effect will be signed on 9th (Gudi Padwa, auspicious Hindu (ja) day).

AL wanted current management to resign, hence all white elephents had put in their papers which is good as they were doing nothing.

Mr. Subbu from Hyundai was to join FIAT but Hyundai gave him counter offer hence he is not joining

AL will set aside 36-40 crores for the marketing.
2 new models are set to launch in end 2005 or ealry 2006.

GTO · 5th April 2005, 09:28

Quote:

Ashoka Leyland (AL)will be having 38%, ICICI 31% & FIAT 31% stake in th company.

Quote:

Mr. Subbu from Hyundai was to join FIAT

That is mind-boggling! Where did you get this news? Any online articles that we can read?

GTO

hasopi · 5th April 2005, 09:37

You can refer my earlier posting..what I thought is true!!..All white elephants resigning..

Well done..now we have a match..I still love my FIATS..what a news to start a day!

typeOnegative · 5th April 2005, 09:50

Quote:

Originally Posted by sunil

Mr. Subbu from Hyundai was to join FIAT but Hyundai gave him counter offer hence he is not joining

Awesome news. But they should have got Mr Subbu to join at all costs. He would have really turned things around.

Spoke to Anuroop yesterday. They said that Fiat is palnning to relaunch the Adventure at lower prices. Let's see.

4th April 2005, 16:33	#61
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,858 Thanked: 27,925 Times View My Garage	Listen listen listen Growing market - plenty for all - everyone posts year on year increase providing you have a decent product Why ain't Fiat there ? It is pretty difficult to lose sales in this market with a good product but Fiat have overachieved in this respect - The car is streets better than an Indigo A speculation - Fiat pulls out, sells the land in Kalyan, subcontracts car manufacutre in Ranjangaon or sells this plant to VW or Nissan, manufactures the jtd erngine for Maruti Fiats are no longer sold in Singapore. so so effort in Malaysia History
	() Thanks

4th April 2005, 16:37	#62
deepakhon Senior - BHPian Join Date: Oct 2004 Location: Bangalore Posts: 1,441 Thanked: 65 Times	I own a Palio too and I too am a bit scared at the plight of Fiat in India. Worldwide also it is struggling. Hopefully with the introduction of Fiat Croma and Punto, things might change for better. The plight of Fiat in India was not so great when I bought my vehicle, but as RX135 said, I just couldn't resist this machine! With almost a year and a half with my machine, I must say that my decision about the car is good, but let's see how Fiat can do in India from now on. I also work for a multinational s/w company at B'lore, which is not in the pink of its health today. But with the kind of products coming up, we are bullish in the long term. I do hope Fiat pulls up something like this in India. Their idea of being just a technology supplier is just a little different stuff that they are attempting. I am not too sure how much of a success this would meet. If I am not mistaken, Fiat wants to do it exactly the way Mitsubishi is doing currently with HM as their partner here. Well, how well it does, only time can tell. I am keeping my fingers crossed!
	() Thanks

4th April 2005, 17:30	#70
satish_appasani Senior - BHPian Join Date: Jun 2004 Location: Hyderabad Posts: 1,112 Thanked: 104 Times View My Garage	I read two news items in the recent ET, though on different days. 1. ICICI JV looking for a stake in Fiat India. This was a positive note. Though the two parties denied the statement, the news included who is advising each party. Citi group is advising Fiat. And as we have been hearing for some time, Hindujas are also looking for a pie. 2. This is a negative news. Top management of Fiat India moves out. The reason was better prospectives. After reading these two items, I feel more positive about Fiat India. Better than before. Positive because there are companies who believe they can make money on Fiat's products and want to buy a stake in the operations. The later news did not have much effect. It also mentioned that the managers are quitting for better opportunities. In these days of competition, every company tries to pick people from their competitors. In the current situation, Fiat may not be a good pay master. It's obvious if some XYZ company offers a better pay, people will quit. When Mitsubishi can still hang around, Fiat with better models and better target market can continue their business. Also aren’t Fiat’s current sales better than Mitsubishi’s?
	() Thanks

5th April 2005, 08:16	#71
LLL BHPian Join Date: Mar 2005 Location: Delhi Posts: 635 Thanked: 2 Times	Well fiat actually is loosing because of poor management and hence its a good thing that the management is moving out. Probably someone more sensible might replace them and turn around their India operations. To turnaround, i believe, fiat needs to do the following things: 1. Reconsider their position in Indian market. To succeed in India, you need to have a successfull product in A (maruti) , B(maruti, Hyundai, tata) or C(ford, tata, Honda) segements. Fiat doesnt have a scorcher in any of these. Fiat should dig deep, look at their entire line and launch a product in each segment, keeping in mind as to why people buy these cars. e.g Tata talks about 1 lakh car..how about fiat using its vast experience/footprint and come up with a 1-2 lakh car. Tata/Maruti/Hyundai - please pack your bags and leave... 2. Target special profiles - come out with cars which are customized for seniors, families, disabled people etc, no manufacturer has any custom vehicles for these segments. These customers are out their for fiat to grab.... 3. repair their bad reputation, which is because of their bad ASS. 4. win back the customers - offer 100k km warranty, all india roadside assistance, free service camps, upgrade offers, a certified used car program, buyback guarantee....show that fiat is going to stand behind its cars. A buyback program would be the best bet...
	() Thanks

5th April 2005, 09:16	#72
sunil Newbie Join Date: Sep 2004 Location: Mumbhai Posts: 12 Thanked: 0 Times	Here is the latest on FIAT from the insider.... Ashoka Leyland (AL)will be having 38%, ICICI 31% & FIAT 31% stake in th company. The agreement with this effect will be signed on 9th (Gudi Padwa, auspicious Hindu (ja) day). AL wanted current management to resign, hence all white elephents had put in their papers which is good as they were doing nothing. Mr. Subbu from Hyundai was to join FIAT but Hyundai gave him counter offer hence he is not joining AL will set aside 36-40 crores for the marketing. 2 new models are set to launch in end 2005 or ealry 2006.
	() Thanks

5th April 2005, 09:37	#74
hasopi BANNED Join Date: Oct 2004 Location: Bangalore Posts: 177 Thanked: 0 Times	You can refer my earlier posting..what I thought is true!!..All white elephants resigning.. Well done..now we have a match..I still love my FIATS..what a news to start a day!
	() Thanks

Thread Tools	Search this Thread
	Search this Thread: Advanced Search