Fiat might get a partner for Indian Operations

Fiat is one of the most well known auto brands in the world. They are the owners of prestigious marquees like Ferrari, Maserati, and Alfa Romeo. However, their Indian innings has been full of surprises and disappointments. The company has in India models like Fiat Palio and Weekend. Their marketing and sales support has failed them miserably in the Indian market and people still associate them with the vintage Premier Padmini.

The company is now said to be in talks with an Indian company for a possible collaboration. The aim is to form a strategic alliance that holds the potential to dramatically alter the Indian automobile landscape. The companies are said to be developing a special purpose vehicle (SPV), into which the Italian giant’s Indian assets will be parked. It would be owned by the two parties involved.

Sources claim that the Indian auto company Fiat is in talks with is Ashok Leyland but nothing is confirmed until now. The collaboration is said to be a result of an initiative from the Indian banking and financial institution ICICI. The deal would also help Fiat write off 35-40% of the debts they have on these finance institutions. Both the companies have declined to comment on these market rumors.

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