Turmoil in Tata-Fiat JV?

Kaustubh

Kaustubh Shinde, They say sooner or later your passion finds you. Sometime in late 2009, I started writing for IAB and ever since then it has been a roller coaster ride for me. An amazing experience that has taught me a lot, taken me to new places, driven some great cars and met some amazing people. When you don't find me on IAB (very rarely), you will find me either at a coffee shop or an eatery or at the nearest gadget store.Hope you enjoy IAB as much as we do!

We all are aware of that the Tata-Fiat JV has received constant flak from the customers. But now even the top management is criticizing the working of the partnership. Bloomberg reported that Carl-Peter Forster, CEO and managing director of Tata Motors Ltd made a comment that he is “not happy” with the rate of Fiat sales and is considering ways to restructure the partnership.

Fiat Linea India

This statement has sent chills down the spine of Rajeev Kapoor, president and CEO, Fiat India who confounded –

I have no idea why this comment was made by Forster and in what context. We are also trying to get in touch with him and understand what restructuring he meant. As of now I am clueless

Following this incident spokesperson of Tata Motors said Forster was misquoted by Bloomberg and that the joint venture is progressing as per plan.

This is not the first time Tata Motors has raised concerns about the progress. During the first quarter results also the company said that it was not satisfied with the way the partnership had progressed, but was confident of turning it around.

The JV has been struggling financially since a long time and both the partners are constantly pumping fresh funds to keep it alive. Now, there are also rumors circulating that Fiat wants to establish its own sales network and wants to part ways with the Tatas.

Do you think that Fiat should part ways with the Tatas and establish its own network? How will Fiat be able to make a smooth shift to independent outlets? Will Tata Motors be open to the idea of Fiat building its network while cars continue to be serviced and sold at Tata outlets?

Source – DNA India

Contribute to IAB
Submit Spyshots & get Bragging rights! Click Here
Custom Mods on your ride? Get it featured on IAB Submit

Tata-Fiat News & Updates

Toyota ready to challenge Tata’s domination in the Taxi market; Time to bring out the Indica XL CR4?

JLR helps Tata Motors double its profit

Tata Motors takes the Vista to Spain; Aria and Xenon to follow

Fiat India sends out a letter of assurance to customers post its break-up with Tata Motors

Fiat India rolls up its sleeves; Plans 100 dealerships in 18 months

Fiat India inaugurates first independent dealership in Hyderabad