Tata, Fiat strained alliance to be reviewed by Accenture
Since a long time Italian car maker, Fiat has been in news for showing dissatisfaction for its joint venture with Indian Auto maker Tata Motors. And now the company has strongly pointed out the distribution joint venture between the two companies and has claimed a review for the same.
Italian company Fiat and Indian auto maker Tata Motors are in 50:50 partnership for the distribution of Fiat models in Indian Auto market. The issue has been taken to Accenture, the global consultancy organisation for reviewing the entire matter along with its economic viability.
Fiat Motors recently claimed that the sale of its car models is getting affected because of the joint outlets of Tata Motors and Fiat which leads to favouritism by dealers. To come out with an effective solution, the top officials of Tata Motors and Fiat has formed a dedicated committee, joint-steering committee (JSC) which will handle the reports given by Accenture.
Accenture will not just be handling the review of distribution network of Joint Venture but will also analyse the financial position of Fiat in India. Accenture is going to analyse the profit and loss statement of the company lying in the Registrar of companies (RoC) for the period of April 2009 to March 2010. this period has displayed a loss of around Rs 290 crore by the Italian subsidiary.
The company's top officials have claimed that company will be reaching a position of no profit no loss situation in the year 2011-12 nut still the company i looking for a better situation. As per the reliable industry sources, the Italian subsidiary is looking forward for independent stores and distribution network but a complete dropping of the joint venture is yet not considered by the companies. Fiat was not able to register a good growth in the Indian Auto market which is a matter of concern as this financial year was a blessing for car maker in India.
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