Fiat and Tata have announced to dis-continue the 'Tata-Fiat dealership' agreement both the companies had to manage the commercial and distribution activities of Fiat cars in India. Fiat prior to getting in agreement with Tata Motors in 2006 had India activity partnership with TVS Group.
Fiat announced that the future distribution responsibility would be handled by a Fiat Group owned company formed for this purpose. The new company from Fiat will assume responsibility for all commercial and service-related activities from the current Tata-dedicated team assigned to manage the Fiat brand.
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.
The Fiat-Tata joint venture also included the manufacturing activities at its Ranjangoan plant in Maharashtra. The manufacturing plant uses state-of-the-art technology to produce Fiat and Tata cars in addition to engines and transmissions for both the Indian and export market and recently announced a contract to supply its Small Diesel Engine to Maruti Suzuki. In its five years of operation, the industrial JV has produced some 190,000 cars and 337,000 powertrains. However, this dis-continuation will not affect the current activities at the plant as they are outside of the new distribution agreement and it will continue to supply cars and powertrains to Fiat and Tata.
Fiat announced that the future distribution responsibility would be handled by a Fiat Group owned company formed for this purpose. The new company from Fiat will assume responsibility for all commercial and service-related activities from the current Tata-dedicated team assigned to manage the Fiat brand.
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.
The Fiat-Tata joint venture also included the manufacturing activities at its Ranjangoan plant in Maharashtra. The manufacturing plant uses state-of-the-art technology to produce Fiat and Tata cars in addition to engines and transmissions for both the Indian and export market and recently announced a contract to supply its Small Diesel Engine to Maruti Suzuki. In its five years of operation, the industrial JV has produced some 190,000 cars and 337,000 powertrains. However, this dis-continuation will not affect the current activities at the plant as they are outside of the new distribution agreement and it will continue to supply cars and powertrains to Fiat and Tata.
This article was Posted by:
Kurian Akkara
Source: News @ Economic Times
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