Fiat has never been able to make a mark in India even after trying hard and taking the price challenge owing to the fact that it did not have a strong dealer network. To help Fiat come out of red the Italy’s Fiat Group has struck a deal with Tata Group Chairman Ratan Tata.
Under this agreement Tata dealers will sell Fiat cars an ‘evolving relationship with no barriers or boundaries’. This deal would not only provide the company access to Fiat’s technology but could also see the two share platforms in the future. Under the deal, while Tata Motors will sell Fiat cars from March, Fiat will give Tata access to technology and marketing support overseas. This deal is more to do with the psychological factor that would help Fiat capitalize in Indian market as a reliable and caring car company.
Mr. Tata said – “There are enormous opportunities… We can have access to products, components and technology from a world class company,” he said, adding that they could use Fiat’s marketing network in Europe to push Tata products in the region.
However, there would be no new models that would be launched by Fiat as of now. But what would happen to Fiat’s existing dealers? Answering to this question Marchionne said they would continue to be there though each one of them would be assessed.
This piece of news is very good for all Fiat car owners as they were skeptical that they might end up the Daewoo way. Daewoo closed its shop and left all the owners in a lurch.
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Customer is a king. All MNC’s are trying to bridge the gap between a customer and the company. The middle man is less important.
They use the services of a mediator to raech the actual users. Once they have sufficient nos. of users the middleman goes.
Today biggest problem for every one is to sustain the customer. It require quality after sales support. Still there are doubts that Fiate customer’s will be getting true support from Tata people.