Tuesday, September 06, 2011
By Pranjal Gera
Tata and Fiat to Split up
After about four years of working together, Tata and Fiat have now decided to split up. It has been announced that Fiat cars now won't be sold in Tata Showrooms. Both the companies have mutually agreed on this and have parted ways.
Ratan Tata has stated that their 50:50 partnership with Fiat has many setbacks and needed to revised. Along with Fiat cars being sold at Tata Showrooms, the same were being manufactured along with Tata cars, at Ranjangaon Plant, near Pune.
The rumours are that the main reason behin this split up is the failure of Fiat's cars in the India market. Last month, the sales figure for Fiat Cars was just 1,069 in the country. Whereas, 16,829 Tata cars were wold in the same month.
However, Fiat plans to open up new showrooms across the country. They are planning to open their showrooms in 20 cities by the end of the next year.
Rajeev Kapoor, Fiat India's President and CEO said that the same Tata dealers will open new and separate showrooms for Fiat cars. He said that they also plan to open two Fiat cafes in India. These cafes will be opened in Delhi and Pune and will boost its brand value by adding 'Italianness'.