Recently we brought you a story on how the Tata-Fiat JV is in turmoil. Now Fiat’s big boss has spoken the harsh words. Sergio Marchionne, Fiat CEO has told the WallStreet journal that he is unhappy with the Tata-Fiat joint venture and has plans to take steps to change the relationship.

Fiat Linea Blue and Me

Fiat chief executive Sergio Marchionne Marchionne -

We gave to them the right to distribute and in some areas that is not working. We need to re-dimension how we do this deal

When he says  it is “not working” he is absolutely correct. Tata-Fiat sold 15,231 Fiat cars in the April to December 2010 which is a fall of 15% year on year. Other manufacturers have registered growth and are planning new products in the very same segments consisting of Linea and Punto.

Earlier Carl-Peter Forster, the CEO of Tata Motors, also expressed his concerns over the JV and mentioned about some serious restructuring in the partnership.

With both head honchos ‘not happy’ with the relationship, we think it’s better Fiat sets up its own distribution network.

What are your opinions?

Source – Just-Auto.com


Entry posted on February 16, 2011 By ; Read More on Fiat

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FAQ

8 Responses so far.

  1. arunprakash says:

    its the right step it would be if Fiat stands alone in India U have got good technology good design good fans for fiat but no proper person to give the details about the car on proper showroom for fiat still there are many persons who likes uno, palio but they frighten about serves and spares we are looking for more model like uno palio take some imp step to go forward to make your fans feel happy your technology is leading in india y cant u

  2. Rama Bali Yadav says:

    Absolutely right step it would be if Fiat stands alone in India. Fiat shall die with tata a slow death. I had been a good fan of Fiat Technology and workmanship right from micro techniques to macro. It was intact even after 10 years uptill Feb 2011 from Dec 2001.
    Service workshop people do not pay attention to Fiat cars. Devastating one. suggecstion given by the authorised service centres: Change this car Sir!

  3. manoj says:

    if fiat is serious to be a key player in the indian auto scene it should set up dedicated showrooms, and have independent worshops and sales teams. it cannot depend on tatas as tatas have their own cars to sell.

  4. S A SHAH says:

    Yes, FIAT-India should venture across India independantly. Or atleast, create seperate FIAT-sections at each TATA-dealerships having trained Fiat-mechanics and sales-executives who can purely excell the Fiat compaign. See, Linea-Tjet was launched in my city, but nobody knew it….!!!!, even not advertized in local dailies. I saw T-jet lying outside the main-building among other four multijet-Lineas in rain and mud….what is this?? I recognised T-jet by it’s sporty 16″wheels and the Sun-beam-beage colour……. see how the FIAT-Lovers are self-informed about the FIAT-beauties.
    FIAT-India, kindly, do some thing positively and provide ABS/EBD in Novo-Palio and Uno to set the tough bench-mark-standards for others. They are flaunting YOUR engines and design and YOU are struggling in India….. WE THE FIAT-LOVERS ARE WITH YOU…!!!!
    S A SHAH, NIT, Srinagar-6, J&K, India

  5. sano de selva says:

    hmm ….!atleast now they found out rite i am happy….to FIAT – better come out or you cannot stand alone in this upcpming market……

  6. Anand says:

    There are numerous Fiat fans across India. We all want Fiat to go alone and build up a good network of service centres and showrooms slowly. Fiat knows how to make a good car, but fails to sell it, atleast in India. Better late than never.

  7. [...] all of this seems to be coming true as both Carl Peter Forster, CEO-Tata Motors as well as Fiat CEO Sergio Marchionne, have expressed their reservations about the viability of the Tata-Fiat Joint Venture. Fiat, in my [...]

  8. Anand says:

    It would be good if Fiat have their own distribution and service centers. Even if it grows slowly that’s fine. They can build good reputation in Indian market. Let us see where Fiat India heads.

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