Fiat CEO Sergio Marchionne said he will not close the car factories in Italy. (Photo : REUTERS)
In an attempt to revive its struggling Indian operations, the Italian carmaker Fiat ended its operations with Tata Motors on Tuesday.
The Italian car maker now holds full control of sales, marketing, and service activities. Fiat took the decision as part of a realignment process. It is officially confirmed that the Fiat will set up its own sales, marketing, and service units across India and market its own products.
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"Since two major car producers in the world had a pact in terms of distribution, marketing, production and servicing all coming together, there was so much of congestion while launching our products to the market," said a spokesperson for Fiat Motors.
It was replied while speaking to customers that they are indeed not receiving Fiat products on time and sometimes products were delayed due to the wrong distribution network. So, we have taken this decision keeping a good harmony with the Tata motors."
Fiat said in the announcement that the company will continue to work together along Tata Motors in building world class cars in the years to come and will initiate projects for good sales in the market. The Tata Motors and Fiat Motors will continue to produce vehicles at Ranjangaon in Maharashtra.
"Work on creating separate dealerships have already begun. And both the parties will sign the documents very soon. Once the sign is carried out, then Fiat Motors will start working on strategy of creating a marketing and sales space for its own brand and vehicles," added Fiat Motors.