Tata Motors and Fiat Auto in collaboration

Tata Motors and Fiat Auto in collaboration

Indian Auto Giant Tata Motors have signed on a memorandum of understanding with Italy’s Fiat. The agreement would let the two companies analyze the feasibility of cooperation, across markets, in the area of passenger cars. This deal would also help them encompass development, manufacturing, sourcing, and distribution of products, aggregates, and components.

Tata Motors released a statement on this news: “A joint team would be set up by the two companies to determine the feasibility and specificity of the nature of cooperation, both in the short and long-term. If found feasible, the two companies will enter into definitive agreements in the course of the coming months.”

Tata Group Chairman Ratan Tata added that the collaboration would benefit both the companies involved through joint product development, shared platforms, and aggregates. He said: “We are delighted to be in dialogue with the Fiat group on the range of possibilities between the two corporations. Fiat is a globally respected corporation, with a long-standing presence in automobiles.”

Fiat has been struggling ever since they landed in the Indian market with poor strategies and marketing strategies. They would now have a helping hand in expanding their Indian operations and get back to profitability. Fiat CEO Sergio Marchionne said on this MoU: “The possible strategic cooperative agreement with Tata group represents another step in our clearly defined strategy that calls for targeted alliances across the automobile value chain. It is consistent with successful ventures established with premier partners, including PSA Peugeot Citroen and Suzuki, and the recently announced signing of an MoU with Ford Motors.”