[arjab]

ET news:

Fiat and Tata Motors part ways. Article says that the distribution of Tata & Fiat cars will now be handled by Fiat alone. Manufacturing continues as before.

<<<attached Economic Times article >>>

[RemingtonSteele]

Tata Motors, Fiat end distribution pact in India
MUMBAI (Reuters) - Tata Motors and Fiat on Wednesday announced the end of their distribution pact, under which the Italian automaker utilised the Indian company's distribution network in the country.

Tata Motors, Fiat end distribution pact in India
4:31pm IST
MUMBAI (Reuters) - Tata Motors and Fiat on Wednesday announced the end of their distribution pact, under which the Italian automaker utilised the Indian company's distribution network in the country.
The distribution activities would be handed over to a separate Fiat group-owned company, the two companies said in a joint statement.
Tata Motors' joint venture with Fiat was not producing the expected financial results or sales, Tata Motor's chief financial officer C.R. Ramakrishnan said in February.

REF: Business News - Indian Stock Market, Stock Market News, Business & Finance, Market Statistics | Reuters India

[nkrishnap]

Finally some sense has prevailed and a bold decision by FIAT.

However, they key relies in how the new plan will be executed. Hope they have rejigged the Engine Supply agreement, the product differentiation in terms of engine will be difficult. TATA should not get access to the bigger engines unless the vehicle is completely in a different category all together.

Get one model higher than Linea and one below Punto to acheive respectable volumes which will get the delears interested in opening a delearship at the first place.

Linea begs only two engine line up T-Jet and 1.6 MJD (even if with a FGT). Punto diesel should come with 1.3VGT only. Get new gear boxes that are doing duty in Europe. Made to order Punto T-Jet.

[StarrySky]

When will this separation happen? Independent Fiat showrooms haven't opened, and I don't know how close they are to opening.

Personally, I am in two minds about the service part, because I am now getting good service support from the existing Tata dealer.

[Shreyas Aterkar]

Wow, thats nice! Now eager to see how the transition takes place, how much time does Fiat take to have a decent distribution network in place. Good to see Fiat taking some bold but essential steps to make some impact in India. Would be essential for them to expand their product range though don't see this happening anytime soon as they will require good amount of investment, time and energy, which will be used at the moment to set up and smoothen out the new distribution network. But this proves that they are serious about India.

[vipul_singh]

This is a crucial moment for FIAT India, and full capitalization of this opportunity is absolutely critical. This is the fourth ‘clean sheet’ moment they have had in their Indian journey – the others being:

1) Launching the Uno, eventually becoming unsuccessful
2) Launching the A178 cars, eventually becoming unsuccessful
3) Restarting operations after tie-up with Tata, Launching the Linea and Punto, eventually becoming unsuccessful

This change brings its own opportunities and threats.

Opportunity: This is the big change they needed to be able to send out any positive message to the Indian market. Mere incremental improvements would not have convinced the Indian customer who has practically written them off.

Threat: If they fail at improving – and just as important, at communicating the improvement - again, the whole plan of launching the next small car (and possibly the Viaggio) is down in the dumps. They may need to exit India in that case

I’d say attention from Sergio’s ‘A-team’ is needed at this time (maybe even someone from Auburn Hills)

Oh! And I pray to God that the new service network shall continue to support the A178 cars.

[vvmanoj]

Originally Posted by StarrySky

When will this separation happen? Independent Fiat showrooms haven't opened, and I don't know how close they are to opening.

Personally, I am in two minds about the service part, because I am now getting good service support from the existing Tata dealer.

I know for sure there is one opening in Hyderabad (Jubilee Hills). Its an exclusive Fiat Showroom AFAIK but through an existing Tata dealer.

[Turbokick]

Good things come in small packages.
Hope Fiat is very serious about the exclusive service and dealer network.
Companies like Nissan and Renault are increasing their network steadily. Fiat can be even better

[shortbread]

More than Fiat this is good news for Tata and their sales operations.

Now they can focus on their own models rather than having to push a struggling brand as well. Dealership operators will be relieved as well now they wont have Fiat stocks shoved down their throats!!

[Ashley2]

Mod Note : Please continue the discussion in the new thread. Thanks


IMO, the sales points should not be reduced. This is the single point which shows to people that there is something also called as Linea and Punto. When the sales points are reduced this will actually impact the walk ins, means actually loss of sales only.
But instead if they had kept Tata in hand and opening independent showrooms was also parallel, then that's wise.
Also the service part should be separated and should be handled only by the independent showrooms only - this will be for two reasons - 1. To increase the revenue of dealers to support their minuscule sales numbers 2. To have a exclusive service centre so that the communication for parts support and servicing of the cars also will be distinct, instead of the current 10+1 condition.