Tata might collaborate with Fiat for Indian Operations
Tata Motors are nearing a possible deal with the Fiat for a joint R&D facility for overseas markets. They would be signing on a worldwide agreement that will have the two automobile majors cooperating in a wide range of areas. These would include joint research and development for cars for overseas markets. In addition, Tata would be able to use Fiat’s retail presence abroad for marketing Tata cars.
Sources in the media claims that a joint press announcement can arrive anytime now. If it indeed happens, it would be for the first time that an Indian automobile company would be joining hands with a foreign peer in global markets. Both the companies for now have declined to comment on the speculation in the market.
Such deals are becoming pretty regular in the world market as the auto companies are finding it hard to survive on their own. Most of the recent such collaborations have been related to co-development of hybrid technology. Such a collaboration between Tata and Fiat would be a win-win situation for both the parties, as they would be complimenting each other in the fields they have expertise in.
Fiat would get support in their Indian operations and Tata would get access to the worldwide network of Fiat Auto.