Why Tata is Worried about Fiat India?

[AMG]

Re: Why Tata is worried about Fiat India

Fiat India posted a staggering cumulative loss of Rs 970 crore (Rs 9.70 billion), in a little more than two years.

Isnt it a "huge" loss?

 

[350Z]

Re: Why Tata is worried about Fiat India

Fiat India posted a staggering cumulative loss of Rs 970 crore (Rs 9.70 billion), in a little more than two years.

Isnt it a "huge" loss?

Huge? Yes. But definitely less than what may happen in near future if they keep running on the same track. The situation can be still controlled now before it becomes worse.

Drive Safe,
350Z

 

[powerpacked]

Re: Why Tata is worried about Fiat India

I was checking the various diesel sedan n hatches On Road Price yesterday for comparison purpose.

To be my surprise I saw Palio Stile both Petrol and Diesel listed on Fiat India's web site.
Well is this an illusion or what because while booking Palio Stile SDX in the month of March 2011. I have searched and still remember that Palio stile was not listed on the web site. IS this a sign that Fiat is officially promoting the Palio Stile in Indian market?
Is this third product offered to Indian buyers in order to present a wide range of choice?

 

[jayadev]

cumulative loss of Rs 970 crore (Rs 9.70 billion)

how come fiat have such a loss within 4 years there were neither major advertisement campaigns nor any new model launch. fiats power trains (engine) have been doing good business.
imo it is just a cover up for fiat's past lousy activities.
this kind of shows happens everywhere when two partners kick off a business where either of them are like dumb and deaf. finally they end up blaming each other or calculating cumulative loss but both enjoyed their share of cake in best manner.

 

[Swapnil]

I am interested in what Tata's have learned from the JV. If they are able to develop engines like Fiat, then it will be an interesting war between Tata, Maruti and Hyundai.

 

[jayadev]

tata Nano have the engine fully developed by tata-the reason why whole car costs mere Rs.98000/- only at present .

 

['venom']

Hi, Fiat has appointed new senior VP for commercial operations - Mr. Enrico Atanasio. Can this help ?

 

[AMG]

I dont think that would help.

 

[basis]

Fiat ...Good product , bad partner

 

[AMG]

Cost cutting measures and improved exports of engines have helped the struggling Tata-Fiat joint venture to bring down its losses during FY2011, although production of cars remained low.


The Rs 4,000 crore Ranjangaon facility near Pune, which makes cars, engines and transmissions for both Tata Motors and Fiat, adopted aggressive cost cutting measures as part of a renewed attempt by both companies, especially Tata Motors, to put the JV back on track.

According to financial disclosures made by Tata Motors in its latest annual report, the joint venture company known as Fiat India Automobiles posted a loss of Rs 243.6 crore for FY11, against a loss of Rs 272.3 crore recorded in FY10.

Tata Motors, the largest maker of automobiles in India, and Italian company Fiat Auto SpA, own 50 per cent each in the JV. Since inception, the JV has reported a total loss of Rs 1,214 crore since in the past three years.

Rajeev Kapoor, president and chief executive, Fiat India, said: "We have managed to cut down our losses because of increased production of engine and transmission and aggressive cost control measures. This is a result of the restructuring which is taking place at present within the company."

The JV company has seen a top-level management rejig in recent months with Carl Peter Forst6er, the current group managing director and CEO, appointed as the chairman of the company.

Some new faces have joined the company from Italy and Tata Motors to support the sales and marketing teams. Several measures have also been adopted at the retail level to spruce up sales.

Source: BS MOTORING