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We are Still United: Fiat
Fiat CEO Sergio Marchionne has said the joint venture with Tata Motors had not generated expected results. He said: “ The terms will change, but the project will keep going ahead. Assumptions in terms of volumes didn't work out, more so for Fiat than for us because there was a downturn and they made an assumption on off-take , which did not materialise."
Fiat has not been able to generate expected sales as its model are sold in Tata Motors' showrooms and dealers prefer to sell the Tata cars than Fiat. Another issue plaguing Fiat in India is the high cost of maintenance, service and spares.
Experts have opined Fiat selling its cars along with Tata did not help the Italian car maker. They have said while Tata and Fiat can continue with the joint manufacturing partnership, Fiat must develop its own independent distribution network.
The Tata-Fiat joint venture has reported a total of Rs.1,214 crores in the past three years. Fiat has to reinvent itself as a brand in India to make an impact in the market. It is currently selling the Punto hatchback and the Linea sedan. Both cars have registered a drop in sales in the past three months.
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