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For all the noise, how is Fiat really doing?

#11 02-Nov, 2009 04:42 PM
Steeroid
Beloved




Posted by Himanshu Singh
From a management perspective, what Fiat must realize is that the people who are selling their cars are their nearest rivals as well.

I dont think they are 'rivals' and they're definitely not just the salesmen for Fiat - because Fiat India Automobiles Limited is a 50:50 JV between Tata Motors Limited and Fiat Spa.  Tata own Fiat in India as much as Fiat itself does

In other words, "Fiat" today is yet another Tata JV brand in India like Virgin, DoCoMo, etc.  In the telecom sector, Tata sells services in its own name (Indicom) as well as franchised names like Virgin and JV names like Tata DoCoMo.  At the end of the day its all Tata.




Dont take yourself too seriously. Nobody else does.
Total Posts: 412 Quote
Last Updated: 02-Nov, 2009 04:49 PM, by Steeroid
#12 02-Nov, 2009 04:50 PM
Himanshu Singh
City: Noida
Long-termer




from an accounting point of view Yes. But in reality they still look to push Tata cars more and are generally reluctant to promote Fiat.

It may so happen that their targets/incentives are higher for Tata (not sure though). However, when I went their to enquire about Fiat cars, they did tell me about it, but were keen on insiting, "Sir, why dont you consider Indigo as well?". Whereas I am sure they will never recomend a Fiat to anyone who is enquiring about Tata cars. This relationship has surely held fiat back thus far. However over a period of time this is a feedback that has been given to both Fiat and Tata time and agian. I hope things are improving now.



Total Posts: 223 Quote
#13 02-Nov, 2009 05:01 PM
Steeroid
Beloved




I'm sure that Tata as 50% owners of the business has more to gain or lose from the brand's success or failure.  Some of us may be passionate about it, but we havent put big $$$ into the business as they have - so perhaps we should give them a bit more credit.




Dont take yourself too seriously. Nobody else does.
Total Posts: 412 Quote
#14 02-Nov, 2009 05:26 PM
Prashant
City: Kolkata
Driven




Dear @ Himanshu, at Kolkata before buying my Punto I went to two dealers (we have three dealers here) and both of them have seperate sales teams for Fiat and Tata. Yes, if you ask Tata sales guy about Fiat he will always push you for the product he is dealing with.

Dear @ Steeroid, actually to the extent I know this JV is not about the 50:50 revenue sharing, but this is based upon an understanding that Tata will be using Fiat's existing Ranjangaon manufacturing facility and Fiat will be using Tata's existing dealer/distribution and service network Please go through given below link:

http://machinist.in/index.php?option=com_content&task=view&id=363&Itemid=2



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#15 02-Nov, 2009 05:37 PM
Sukumar S
New Arrival




I have already booked Punto 1.2 active, now I am scared by seeing these kinds of review. I do not know how my expereince going to be with dealers response towards service.



Total Posts: 2 Quote
#16 02-Nov, 2009 05:58 PM
Anshu Jha
City: Hyderabad
Beloved




@ Sukumar, dont be afraid off with these discussions. Its the Fiat Company and its history as a whole which is being discussed rt now. Otherwise Punto is a good car and its after sales repo is also good till now. We havent seen much complaints as such for after sales service or car problems.

By the way CONGRATS for the new beauty destined for you

Happy Driving




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#17 02-Nov, 2009 06:24 PM
Steeroid
Beloved




Posted by Prashant

Dear @ Steeroid, actually to the extent I know this JV is not about the 50:50 revenue sharing, but this is based upon an understanding that Tata will be using Fiat's existing Ranjangaon manufacturing facility and Fiat will be using Tata's existing dealer/distribution and service network Please go through given below link:

Please read:

http://www.fiat-india.com/about-us.aspx 

thats straight from the horse's mouth so there shouldnt be any ambiguity about it.

To quote from the press release following the formation of the new company:

Tata Motors' Managing Director, Ravi Kant is the chairman of the board, with Alfredo Altavilla, the current senior vice president (Business Development) of Fiat being the new vice chairman of the JV.

Fiat had shut its Kurla plant in Mumbai and moved to Ranjangaon almost two years ago, but due to some reasons actual production from the plant got delayed. Tata Motors then picked up 50 per cent equity in the plant and assured a contribution of Rs 2,000 crore in December last year.

Its not just an understanding - they paid for 50% of the plant AND a Rs.2,000 crore contribution.

However, this thread is not about ownership so lets return to the main issue.




Dont take yourself too seriously. Nobody else does.
Total Posts: 412 Quote
Last Updated: 02-Nov, 2009 06:27 PM, by Steeroid
#18 02-Nov, 2009 06:39 PM
Prashant
City: Kolkata
Driven




@ Steeroid, I already gone through it many times (also, in the link there is the same story), but nowhere it has been mentioned that Tata and Fiat India will be sharing Fiat India Profit 50:50.

You are right, we should not be stretching things where we have no insights.

@Sukumar, all the best and trust me you will not regret the decision you have made. Punto is a very wise decision and at that price don't forget you are getiing wider and bigger car with a decent engine (1.2 FIRE)



Total Posts: 30 Quote
#19 02-Nov, 2009 08:12 PM
Grandeur
City: Navi Mumbai
Long-termer





Posted by Rajendra

Good writeup Steeroid.

One reason I can see: I went to Tata Motors showroom and asked for test drive of a Linea. They said it wasn't available now. That's all they said - there was no "We will get back to you". Then I 'requested' them to take my phone number and call me up. They never called. After that I caught them up at a Linea promo and requested again for a test drive and to call me up. They didn't.

But the story does not end here.

I wrote to Fiat about my experience with Tata motors and that I wanted a test drive. From that point onwards I started getting advertisement mails from Fiat about how good the Linea is!

Morale of the story: Neither Tata Motors nor Fiat care if you buy Fiat cars in India.

As an interesting contrast, I submitted a query on Toyota site for Corolla - they called in less than two hours and arranged for a test drive the next day at my place which isn't very close to Toyota showroom. I had to cancel the test drive because I was busy but they actively followed up for next available day. And they sell what's probably the most reliable and well-built car in that segment.

Other reasons - after sales service, spares, costs - don't know.

@ Rajendra

Seems dealer around your place is not doing good job. My experience is bit different, I requested for test drive on Fiat's website and within 2 hrs I got call from Fortune Motors, Nerul. The sales guys were immediately assigned to me who kept following up with me until I finalized the vehicle. They ofcourse also asked me to have a look at Vista, but my priority was set. I wanted Punto and only Punto. On my wish, they took me to there godown and helped me finalizing the vehicle I wanted.

Even, my first service experience is pretty impressive. The Service Manager "Mr. Amithabh" helped me in all possible way to answer my query and made sure that I leave the service center with a smiling face.

But thats my story, I agree people do face similar situations like yours and I think we should take initiative to reach out directly to Fiat people to bring it in notice about such situation...


Hey Sukumar,

Trust the brand, its growing and getting serious. All of Fiat/Punto/Linea fan are quite hopeful to see the changes in consumer mindset in coming years about its product and brand value. 

Punto is a great product and I'm sure you'll not regret ur decision. Just keep yourself more aware and informative to handle situations if ever you caught up as discussed in this thread. One needs to reach out to right people.

Cheers!




Sandeep S Rathod GP MJD 1.3 - Emotion
Total Posts: 129 Quote
Last Updated: 02-Nov, 2009 08:13 PM, by Grandeur
#20 02-Nov, 2009 08:31 PM
Pal
City: Chennai
New Arrival




I am regular visitor of the carwale but this is the first time i am writing a quote. Steeriod, you have written what was running in my mind. I am planned to buy a hatchback so doing all kind of research in last 3 months. I came to know Punto is right choice by lot of reviews and friend's circle. But I didn't see much punto's in chennai roads, so far i have seen 4  only "so Y is always running on my mind". your topic induced me to reply. It is very good topic to discuss.

My experience in TATA - FIAT showroom: I went to V.S.T showroom in chennai. One sales person received me after 15 - 20 mins. he was busy with LINEA clients, some more people were also waiting for him. At last he turned to us and explained about Punto. He doesn't know much about the punto so he was running to his senior's to get the answer. I have seen Punto (Blue) in showroom, It looks sexy and superb. I asked him about test drive. He said today is not possible, I will arrange it by tomorrow. He noted my phone no also. I didn't got any call from him on next day so i called him he replied the same answer. Next day also happened the same. I frustrated about the FIAT response and erase the test drive idea of punto from my mind. I concluded it is never possible.

Compare to Hyundai sales persons FIAT needs to improve 1000 * 1000 time better. I think it is the main reason to search Punto with lens in chennai roads.

Still I am planning to buy Punto (probably blue) with my own risk. I don't know how the Punto (Blue) looks in road. If anyone bought it please share the picture. I feel FIAT should give more colours than existing.

Post edited for formatting the paras.



Total Posts: 1 Quote
Last Updated: 02-Nov, 2009 11:07 PM, by Pankaj Prasad