Tuesday, May 8, 2012

Fiat breaks free from Tata as distribution tie-up comes to an end

Till now Fiat was marketed and distributed in India by Tata through Tata-Fiat dealership but the Italian automaker looks set to take control from the Tata’s and take control of all the management functions in the Indian market. The takeover will include all the commercial and distributional services.

The Fiat-Tata joint venture started in 2006, and the venture also includes manufacturing activities located in Ranjangaon apart from the commercial and distributional activities. Through the venture both Tata and Fiat cs were manufactured as well as engines and transmissions were also made for both Indian and export markets.

However the dealership thing won’t affect the manufacturing venture between the two. They have produced 190,000 cars and 337,000 powertrains in their combined efforts. Hence the manufacturing deals remains intact.

“Development of the new Fiat dealer network for India will start progressively and the 178 existing Fiat-franchised Tata dealers in 129 cities will be encouraged to form the foundation of the future network,” Fiat said in a statement.

They have also said that they will establish a new company that will be taking over all the commercial and service related activities from the Tata managed team.