This has to be a nice news for me and many car lovers in the country. I have always been of an opinion that Tata Motors has been dishing out step motherly treatment towards the brilliant cars from Fiat. Now, as per some reports in popular business news dailies Economic Times and Business Standard, both Fiat and Tata Motors have revealed that they are having another re-look at the 50:50 joint venture between them. Everyone realizes that the partnerships between the Italian giant and popular Indian manufacturer could be made more fruitful for Fiat. The partnership was seen suffering an almost 15% drop in sales during the 2010-2011 fiscal.
We have always wanted to have an independent sales and service network for Fiat. Somehow, the concept of a manufacturer’s car being sold and serviced by a different manufacturer never really appealed to me. Our regular readers might remember that Fiat India came up with first ever Fiat Caffé in India at New Delhi during the time Auto Expo was being held. Now, these are some revisions in the JV that have taken place-
• Stop with retailing Fiat cars at the 40 Tata-Fiat dealerships at 20 cities across India.
• Establishing 20 Fiat Caffés that will excusuively cater to Fiat cars.
• Increase dealer margin from 5% to 8.5%.
We just hope that these new steps work for Fiat and we see more of those elegant Italian beauties on Indian roads.
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