NEW DELHI: January 13, 2006: Fiat Group and Tata Motors Ltd. announced today they have signed an agreement to co-operate on dealer network sharing, which encompasses the sale of Fiat branded cars through selected Tata outlets throughout India. Tata Motors will manage the marketing and distribution of the Fiat branded cars.
Following this agreement a targeted selection of Fiat cars and the Tata product range along with service and sale of spare parts will be available from March 2006 through the Tata dealership network. Dealers will display the new Fiat logo alongside the Tata logo at their outlets.
This deal is the first result of the joint activity started after the signature of the Memorandum of Understanding between Fiat and Tata Motors in September, 2005. As the analysis of feasibility and specificity of the nature of the cooperation goes on, further specific agreements are expected.
Commenting on this deal, Mr. Sergio Marchionne, CEO of Fiat S.p.A, said: “This agreement is a milestone in our presence in India. It enables us to increase our customer base in the country and to provide superior quality service and facilities to our existing customers. The joint team is doing an excellent job and I am confident that our cooperation with Tata will further expand in the areas of product development, manufacturing and sourcing.”
Commenting on the agreement . Ratan Tata, Chairman of the Tata Group and Tata Motors, stated: “I am very pleased of this quick and definitive start up of a potential long term relationship. We believe this will soon result in more strategic alliances between the two organizations and across markets” .
One of the pioneer companies in the automobile industry, Fiat has produced more than 85 million passenger cars and light commercial vehicles, including no less than 400 models, since 1899, when the company was founded in Turin, Italy. Some of them have represented milestones in the automotive industry.
The Fiat Group’s Automobiles Sector operates world-wide with the following brands: Fiat, celebrated for value, economy, and innovation and whose mass produced cars are distributed over almost the entire price class spectrum;
Lancia (acquired in 1969) means prestige cars noted for their elegant styling, and comfort; Alfa Romeo (acquired in 1986) is famous as a maker of sport and luxury vehicles of style and distinction; Maserati (acquired in 1992) represents a landmark in the history of the automobile; Ferrari (acquired in 1969), well renowned for unsurpassed design, performance, and luxury, is a legendary automobile that imparts special cachet to its owner.
About Tata Motors
Tata Motors is India’s largest automobile company, with revenues of US$ 4.7 billion. The company is a market leader in commercial vehicles in India and amongst the top three players in the passenger car industry. It is the world’s fifth largest medium and heavy commercial vehicle manufacturer.
Tata Motors vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and Australia. The company acquired the Daewoo Commercial Vehicles Company, Korea’s second largest truck maker, in 2004. In 2005, it acquired a 21% stake in Hispano Carrocera, the reputed Spanish bus and coach manufacturer.