Fiat India Will Achieve Cash Break Even By 2011-12
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Fiat India Automobiles Pvt is currently enjoying the sales of its recently launched mid-size sedan, the Fiat Linea and the company is set to launch two more models this year and achieve cash break-even by 2011-12, said the president and chief executive officer Rajeev Kapoor.
The company is 50:50 joint venture between Italian automaker Fiat S.p.A and Tata Motors Ltd. It is preparing to launch the Grande Punto, a compact car, in the third quarter of the fiscal year. The second model will be Tata Motors’ new three-box offering, code-named X1.With the Fiat Linea, the products would be instrumental in steering the joint venture into profitability, adding that the planned launch of the Fiat Bravo was being delayed because of the economic slowdown.
Mr. Mahantesh Sabarad, an auto analyst with Centrum Broking Pvt. Ltd. Said “Typically a JV (joint venture) of this magnitude takes four to five years to break even.”
Mr. Kapoor however added that “Fiat has been known in India more for the Premier Padmini, based on the Fiat 1100, which the Doshis of Premier Automobiles Ltd manufactured for four decades starting in the 1950s. In Mumbai, black-and-yellow Premier Padminis are still the most popular taxis. Fiat, which has had a chequered history in India, had almost decided to quit the market but for Fiat chief executive officer Sergio Marchionne and Tata group chairman Ratan Tata coming together in 2005.
He added “Such was the level of confidence among both the partners that investments began at least two years before even a formal agreement was signed.”
[Source: infibeam]
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Posted: May 1st, 2009 under Cars.
Tags: break even fiat, fiat, fiat cash break even, fiat india, fiat india break even
