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.
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
Definitely they should part ways in terms of service network. There is no harm in both using the same infrastructure for R&D and producing key components like engines and transmission in one unit. But Fiat needs to slowly say in a 1 – 2 years time shift their entire service network to Fiat exclusive dealerships for better attention to their customers. And I strongly think they should bring in the Jeep brand to India soon.
I am a lover for cars and very good companies, and so I feel fiat should have their own team of engineers in TATA,s work shop who will look after their products only and TATA’s will maintain their customers. But regarding sales let there be one office and two separate desk. You got it right. May be then the esteemed customers of TATA’s & FIAT wont have to suffer. Hope both the companies are listening.
The JV would continue to struggle , if Tata Motors Dealers dont improve their After Sales Service , which is currently pathetic .
We dont expect customers to be treated like cab drivers , especially when they buy top-of-line cars such as Fiat Linea. I had this horror experience first hand when buying my Linea . While such an attitude doesn’t hit Tata cars much because it is aimed at Value for Money segment (Who do tend to adjust with the inconveniences because of the VFM factor) , it would definitely hamper the sales of Fiat cars
FIAT SHOULD KEEP UP TO ITS MARK. WITH TATA WE ALWAYS AND I GUESS 80% CUSTOMERS ARE HAVING VERY BAD EXPERIENCE WITH THE AFTER SALES SERVICE IN GOA (Don’t know about other state). MAY BE DUE TO COLLABORATION WITH TATA FIAT IS LOOSING ITS SALE AT LEAST TO SOME PERCENTAGE. BETTER BE YOUR SELF. DON’T BE LATE RATHER THAN TOO LATE.
I m fan for FIAT from the age i got licence. would be glad (interested) for fiat dealership for Goa. let me know.
We definitely think Fiat should part ways with the Tata just for one reason that Fiat cars deserve better aftersales support than what Tata can deliver. They should pull out slowly after setting up a dealer network in place so that their cars in smaller cities don’t go unattended