Earlier this month, the Fiat Group announced that it is abandoning its network deal with Tata Motors in India after six years and plans to sell its cars in the country through its own dealerships from now on.
While Fiat said that it will continue its joint-venture manufacturing activities with Tata Motors in Asia’s third-largest auto market, some analysts are predicting that the Italian company may opt for a full-fledged divorce, which would allow it to pay court to Suzuki.
“A marriage with Suzuki would be win-win for both Fiat and Suzuki,” Deepesh Rathore, New Delhi-based managing director of IHS Automotive in India, told BusinessWeek. “The possibilities are endless.”
The Japanese automaker, which itself is trying to break free from a failed partnership with the Volkswagen Group, has a 42 percent market share in India.
While neither Fiat nor Suzuki would comment on the alliance rumors, the Italian company’s CEO Sergio Marchionne has said he is interested in a partnership in Asia. “I don’t have discussions going on with anybody in particular other than general discussions about collaborations,” said Marchionne in a call with analysts last month. “But we continue to work at this issue.”
Story References: BusinessWeek
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