Key Facts

Tata Motors and Fiat Auto: Joining Forces

PRESENTED BY

Pallavi SacharRuchi SharmaSandeep SharmaShilpi Roy ChaudhryShweta

KEY FACTSTATA MOTORSTM had its origin in Tatanagar Shops- acquired by Tata Sons on June 1, 1945 from the government.Renamed the company- Tata Locomotive & Engineering Company Ltd.J.R.D Tata Chairman Between 1945- 1973Sumant Moolgaonkar - Chairman Between 1973- 1988In 1988- Ratan Tata Replaced Moolgaonkar as TELCOs Chairman1991- First utility vehicle SIERRA was launched1998- Indica which became a huge successIn 2001- First loss of 5 billion in 57 yearsStrategies- Enter Overseas Market Produce New Products In new segments Fiat AutoJuly 11,1899 - Fiat came into existenceEstablished by Giovanni AgnelliUsed Mass production to keep production cost low1967 - 1st acquisitio by Fiat AUTOBIANCHIAccounted for 5% of Italys GDP1905 - entered India by appointing Bombay Motor Cars Agency as its sales agent.Late 1900 - Fiat Auto was in deep financial trouble.

Tata Motors And Fiat Auto: Joining Forces

Sept 22, 2005- TM signed MOU with Fiat Auto2006- Shared dealer networkVehicle finance by finance division of TMJuly 2006- another MOU to manufacture passenger vehicle, engines and transmissions

KEY LEARNINGJOINT VENTURES???Joint ventures are the arrangements where organization remain independent but set up a newly created organization jointly owned by the parent.ADVANTAGES OF JOINT VENTUREImprovement in fiats dealership network and customer serviceComponent sourcingTata motors to improve efficiencyCut manufacturing cost for Fiats IndiaTata to gain access to the diesel engine technology as well as to next generation petrol power trainsTo co-develop new car models

TURNAROUND STRATEGYIn a turnaround strategy the emphasis is on speed of change and rapid cost reduction and/or revenue generation.FIVE ELEMENTS OF TURNAROUND STRATEGY FOLLOWED BY TATA AND FIATCost managementFinancial restructuringOrganizational renovationProduct re-alignmentA new marketing thrustKEY ISSUES