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Fiat - Fix It Again Tata ?

fiat tata tata-fiat tata-fiat JV

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#1 Yatharth

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Posted 07 October 2011 - 11:33 PM

FIAT-TATA cars ? Will it ever work ? Do you really think it is working?

- FIAT is near dead. Enough said. Even a Ferrari at 15 lakhs wont do for FIAT India.

- TATA ? It is losing out to competition at an alarming rate. Why ?
*Diesel advantage is long lost.
*Quality blips still an issue
*No feel good cars (Lack of something interesting in terms of petrol engines,handlers,technology, safety, blah blah)

I don't know how the technical agreement works between Fiat and Tata but I will best describe it as 'Jugaad'.

How about 'I will buy car from one manufacturer and service it at other manufacturer' ? Sounds crazy. Isnt it ?

Tata-Fiat showrooms are more interested in selling the Tata cars and Fiat cars get a step motherly treatment without doubt.
(Funnily a representative once tried to convince me for Indica Xeta 1.4 ahead of Palio 1.2 because it has more cc at lesser price !!)

So will it work and if it can then how?

Renault-Mahindra Logan is a good example.
Ok, the car failed. But not for the venture but for the wrong pricing and overconfidence possessed by the team.
Logan is actually a Renault-Dacia car sold with a Mahindra badge. Thats it.
Its doing good as a Mahindra Verito. (which still is a Renault car!)

For the matter of fact, HMSI-HHML coexisted successfully.

How about FIAT-TATA cars ?
Like Fiat-Tata Punto, Fiat-Tata Linea and all. (With Tata being more prominent representative)
Indica,Manza,Vista,Safari and others should continue with only Tata badges as usual.

Advantage Fiat
+ Fiat's flair, Tata's backing. Somehow people in India trust and respect Tata more than Fiat. I bet Linea or Punto would have been better performers under Tata badge. In this way Fiat cars might start selling in decent numbers. Maybe !!

+ No more 'Sauteli maa' type treatment to Fiat at Tatas. With all cars branded as Tata, there will be hardly any distinctions.

+ Better cost control and more competitive pricing. With engines,technologies,spares being shared they can be cost effective. VFM might be even better. They set up common factories as well for joint production. Spares problem can be taken care of then.

+ Liberty of launching and producing new models at right time. Panda, new gen Uno,Panda, New Palio etc will be right cars under Fiat-tata brand. They might actually do the trick for both. (I can see these cars doing well under 'Only Fiat' anyway)

+ 'India-spec' tuning,pricing and modifications for Fiat cars as Tata understands Indian market better.

Advantage Tata
+ It will get the much needed boost as far as private/lifestyle vehicle manufacturer.
They do have source, R&D and depth but somehow I dont see them acquiring the premium branding (cars that appeal the heart) anytime soon.

+ Inhouse production,co-development and sharing technology will hugely benefit TATA. They can work on efficient dynamics,improvement in build quality,diesel technology advancement (Where Fiats are masters) for 'Tata only' cars simultaneously.

+ Interestingly No Tata and Fiat cars are 'direct' rivals today. So canalization wont be serious problem.

+ Codevelop Fiat-Tata cars having Tata's USP (Space,comfort,India spec adaptability) and Fiat's strength (Dynamics,styling,technology,d
iesel)
Imagine the SUVS on same scale !!

+ The prestige of 'near acquiring' a popular European brand (India division)
LandRover-Jaguar purchase has already benefited the brand 'Tata' in worldwide scale. This can be another feather on the crown.

(This is just my wild imagination. I dont know how the collaborations work but i would still like to know if such kind of branding can work or how people will react to this.)
Student (Automobile Designing) at DYP-DC Centre for Automotive Research and Studies

#2 satyenpoojary

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Posted 08 October 2011 - 01:37 AM

Interesting car thread approved...

(PS: Which JV in an auto manufcaturer actually worked till date?)

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#3 Yatharth

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Posted 08 October 2011 - 10:25 AM

Well, do not know exactly about the current status of these but Maruti-Suzuki, Kirloskar-Toyota, Suzuki-TVS and so on... Yes, most of these were just because a Foreign manufacturer was not allowed to enter the market without a JV with an Indian manufacturer but still, all these worked. And yeah, Kinetic & Hero Honda too.
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#4 rahul_rn

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Posted 08 October 2011 - 01:26 PM

kinetic and honda right..??
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#5 Yatharth

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Posted 08 October 2011 - 09:37 PM

yeah....kinetic n honda worked together for quite some time. No?
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#6 rahul_rn

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Posted 08 October 2011 - 11:01 PM

Problem is company's think that the bed is sharable.. so they go ahead and share it, after sometime one of the partner (usually foreign company) sees more benefit in sleeping alone and they brake off.. :D :P
honda itself would have done so much better if it would have been supportive and generous enough to give HH the newer tech and bigger engines but they thought that they should occupy the whole bed so kicked HH out..
If you ask me that's more of a benefit for HH now as can partner with anyone.. maybe even possible acquisition.. and if i ain't wrong most of the engines will be royalty free as well so another benefit..
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#7 Yatharth

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Posted 09 October 2011 - 12:12 AM

Interesting....
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