Friday, August 1, 2008

You know times are tough when: Automakers making love instead of war



Upon buying over Jaguar and Land Rover from FORD, Tata Motors is trying to secure financing services to buyers of these marques in Europe, Fiat had gone to the rescue, saying it will be providing the needed financial services to push these cars into the market.

Where Fiat had previously wanted to acquire both Jaguar and Land Rover but decided to let Tata Motors go ahead with the highest bid since Ratan Tata had always wanted to get his hands on some luxury marque; Fiat had expressed the acquisition as a positive one, even revealing its intentions to go into platform sharing with Jaguar's XF on it's upcoming Alfa Romeo 169 mid size luxury sedan that Fiat had reportedly confirmed that it will be RWD, rivalling BMW 5 Series, Merc E-Class.

As for Fiat's re-entry into the American market, the extensive Land Rover dealers are also a viable channel for Fiats or Alfa Romeos, thou BMW had previously offered it's Mini showrooms to sell Alfa Romeos as well.

Mean while, with Chrysler's forever dropping in sales, Fiat is looking at talking to Chrysler to facilitate it's production lines to produce Fiats or Alfa Romeos, benefiting Chrysler to stay afloat and earn some cash for wages, whereas Fiat could save enormous investments setting up their own factory.

Whereas Chrysler could benefit from Fiat and Tata's close relationship by usign Tata's channel in India to sell their Jeep Wranglers, and perhaps using the Tata Ace's electric car systems for some of it's smaller lineups.

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