[manishk83]

Originally Posted by Daewood

If VW or a Nissan can manage to sell/service 2k cars per month with a miniscule number of dealerships, why can't fiat which has a better car lineup and larger brand visibility in India do better?

Good point! Probably Fiat isn't/wasn't as profitable to be able to invest in the mkt. Or, and what I think is more probable, "once-bitten, twice shy"?? Could they have been afraid of how Punto & Linea would work and wanted to test waters first and then take the plunge??

But, this new move, is definitely positive for Fiat in the long run. Just wondering, in the short term, could that be looked at as a dilly-dallying/ non-stability on Fiat's part by the general public!!

But, great news!!

[echo77]

How's this for an idea:

There are so many "unauthorized" road-side mechanics around the country. Most of them are pretty good from experience (premier/amby etc), but their service is now restricted to old cars, ricks, tempos or emergency cases.

How about Fiat giving these guys free training on new stuff, subcontracting existing local FMCG distributors for parts supply chain, and allow these mechanics to keep all earnings, no franchise fees, and taking their profit by charging a bit more for the parts rather than by frachise/signage fees.

The advantages are many, including the fact that service charges will be a lot less, but the prime disadvantage is that there will be no premium feel for customer (no a/c lounge etc) and this may result in the average buyer staying off the brand. Also, they may need a separate tie-up with car washers (local mechs may make the car dirty with greasy hands)

While the idea is interesting, overall, it may still result in lower sales or catering to a niche low-end buyer or the taxi segment.

Finally FIAT recognized it.........

I just hope that these frequent changes don't lead to confusions for their customers.

[CliffHanger]

Being a Fiat owner myself, I would say, "GREAT MOVE FIAT"

TASS has really ruined my ownership experience of Punto, an otherwise a Great Car. This is a pleasant news. Though the going will be tough initially, their products with top quality service will sell themselves.

And if Fiat sets up his own service center in Chennai, my next car will be Fiat for sure!

[Palio_2005]

I think this is just speculative reporting. Both the companies have invested in the JV and I don't think they would part ways. If they do it would only negatively impact Fiat as Tata's have already got what they wanted which is Fiat technology.

I think Fiat should be happy the way things are.

[chncar]

I think this is a good move for both companies.

Fiat can sink or swim on their own and could be forced to make a proper commitment to the Indian market. Then again, knowing Fiat they might screw up again.

And this could be just the kick up the A*S*S (pun intended ) that Tata needs. I believe Tata has several options for engines, in case Fiat cuts that off as well. They collaborate with Ford and Peugeot for JLR engines and are also capable of coming up with world class engines and platforms by adding JLR expertise to theirs and working with vendors like Bosch.

Originally Posted by CliffHanger

And if Fiat sets up his own service center in Chennai, my next car will be Fiat for sure!

Don't count on it, Concorde is 100% owned by Tata Motors and is generally much worse than independent dealerships.

[GreenDay]

Aal the best FIAT!

News from TeamFiat is that Fiat is soon opening a dedicated showroom in Bengaluru!!

[pr_kalal]

I rarely login in my last years of membership , but seeing this news was so excited to say ALL THE BEST TO FIAT .. and indeed is good to see if they can give good A.S.S having such a good cars.

[im_srini]

Good for FIAT ! The Punto & Linea deserve better than what the TATA delaers & T.A.S.S. dish out (at least here in Chennai).

Originally Posted by chncar

They collaborate with Ford and Peugeot for JLR engines and are also capable of coming up with world class engines and platforms by adding JLR expertise to theirs and working with vendors like Bosch.

God forbid ! The biggest problem with TATA is not technology, it's the T.A.S.S attitude. They haven't even been able to wrap their heads around the FIAT MJD, can you imagine the havoc they'll wreak on more advanced engines ? If technologies like Multi-Air are gonna make it here, it's best for FIAT to strike it alone.

[Comrade]

Till date, I really do not understand how FIAT chose TATA in the first place. They should have gone single after PAL. It might be too late now??

[CARDEEP]

well the Tata-Fiat separation may be imminent, but, it is too early to believe in the speculation, IMO.
This is because they have recently earned handsome profit (for the first time), Fiat would like to have pockets deeper, before making the plunge. This makes business sense as well, lest I see Fiat India suffering bigger losses than its previous attempt.
Moreover, it has been essentially Tata's dealers who have taken up Fiat cars for sale, as many Fiat dealers (of old days, when Fiat ventured alone) had left the company before the Tata-Fiat JV.
I believe that FIAT should try for separate dedicated A.S.S. for their cars, which would no doubt provide better attention & service to Fiat cars & owners.
This can also help Fiat launch more car models in the long run, which is good for enthusiasts.

[rajess_in]

[quote=Palio_2005;2059335]I think this is just speculative reporting. Both the companies have invested in the JV and I don't think they would part ways.quote]

Let me brief on the JV as was once communicated to us by the top managers in TML during my times of employment with it.

The TATA - Fiat JV is of three levels of partnership / synergies. The first is of common sharepoint for customer interaction, i.e. dealerships, service centres, logistics, etc. This is to increase Fiat's footprint in the market, and there is no substantial clauses for either of them to go individually.

The second is on the build / manage level, i.e. use of engines, assembly lines, supplier base, common BIW platforms, etc. This is to improve Tata & Fiat's cost factors. Over all this is to create a pool of resources that can be tapped by the individual companies to reap benefits.

The third level is on the technology level, i.e. develop new family of engines, vehicle systems to leverage the indigenious talent in India. This is in for the future growth of the companies on various technology fronts.

Hope that the JV stays to benefit the indian customers in the end.

[Nilesh5417]

Originally Posted by blue_pulsar

Somehow, this European-Indian JV never seem to work, isn't it? One more recent example being Mahindra Renault.

Will Tata be able to use their engines in the future?

The engine sharing arrangement will definitely stay. Its one of the most successful lines of business for Fiat. And TATA being the #2 car maker now, FIAT won't touch that LOB.
As for the future of FIAT in India, i can only see it going brighter from here. If a Nissan or a Renault can go on their own in India, FIAT has no reason not to. Its after all one of the biggest automobile manufacturers of the world with real deep pockets! Plus its already got plenty of experience in operating on Indian shores. People seem to appreciate their products. Just not the whole buying and A.S.S. experience.

[funkykar]

This is the only way that FIAT can re-ignite themseleves in the hearts of Indians. They just need to be very cautious and ensure they provide world class service. In short, they better learn from all their mistakes commited in the past when it comes to A.S.S

[wildon]

True

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