Tata-Fiat JV decelerates losses

Tata-Fiat JV (Joint Venture) had been struggling from massive losses during the year of 2011, but now opting for cost cutting methods and enhanced exports of the engines have helped the collaboration to emerge from losses.  The Tata Motors and Fiat has a joint facility in Ranjangaon, near Pune which manufactures engines, transmission and cars for Fiat and Tata Motors opted for massive cost cutting methods as a fraction of an attempt that would help both to get out of the losses time. This manufacturing facility keeps the worth of a whopping Rs. 4000 Crore.

As per Tata Motors recent annual report, this joint venture firm, which is called Fiat India Automobiles came up with a massive loss of Rs. 243.6 Crore in fiscal year 2011 and a loss of around Rs. 272.3 Crore in the fiscal year 2010. In India, Tata Motors is counted amongst the top most automobile manufacturers. As far as Fiat is concerned, it holds up 50% of the share in the joint venture of Tata-Fait JV. Apparently, this joint venture faced a loss of Rs. 1,214 Crore in the last 3 years.

As per the Chief Executive and President of Fiat India, Mr. Rajeev Kapoor, the firm has tried its level best to emerge from its losses, reason being the amplified production of transmission and engine and opting for cost effective measures. These methods helped the firm in reforming and put a brake on their losses.

The Tata Motors-Fiat JV is now moving up on the ladder of success with a new CEO and Chairman of the firm, Mr. Carl Peter Forster. Few more people have joined this JV from Italy too.