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Tata, Fiat Announce End Of Distribution Deal
Fiat had signed the distribution deal with Tata Motors to utilize the wide sales network of the Indian carmaker. However, the deal did not deliver expected results with Fiat's sales dropping significantly in the past two years.
In a joint statement, Fiat and Tata Motors have announced the end of the deal. Fiat was clearly disappointed with the sales as well as the financial results the joint venture was delivering. Fiat boss Sergio Marchionne had previously indicated about Fiat taking up its own sales and marketing activities in India.
The end of the fiat Tata partnership was expected as Fiat had already announced it will be opening independent car showrooms. Fiat cars are now being sold along with Tata cars in Tata showrooms. Tata Motors has been a beneficiary of this deal primarily because Fiat shared its technology with it.
Fiat's cars are built along with Tata Cars in a state of the art car plat. Although Fiat is a major carmaker in the world, it has become more of an engine supplier with just over one thousand car sales per month. The engine sales on the other hand are much higher as it sells its multijet diesel engine to Tata Motors as well as Maruti Suzuki.
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