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Mumbai, Nov. 7: Fiats alliance with Tata Motors is coming in handy even before they deepen the relationship: the Italian carmaker has helped the Pune-based auto giant overcome a crisis.
About a month ago, Tata Motors paint shop in Pune was badly damaged in a fire. A company spokesperson had then said it would take some time for the facility to ramp up its existing production levels.
The company found itself in a jam as vehicles couldnt be painted. Thats when Fiat stepped in and the job was farmed out to the latters Kurla plant near Mumbai.
According to the official, the commercial vehicles unit at Pune has also been mobilised to undertake some of the painting job of the passenger vehicles unit, which produces about 750 cars a day.
We have to cater to the demand, said the official. The company announced that it had about a weeks inventory of supply afloat in the pipeline when the fire had broke out on September 21. The plant manufactures the Indica, Indigo and Indigo Marina models.
We have received complete insurance claims for the accident. Although the incident might have some impact on the financials, it will be marginal, said the official.
Analysts also say that since all companies are well insured these days, such incidents do not impact the financials or stock prices any longer. The stock of the company had, however, skid on the bourses as its second quarter results fell way behind street expectations.
Tata Motors had entered into an industrial joint-venture with the Fiat group to manufacture passenger vehicles, engines and transmissions for the Indian and overseas markets.
The company has achieved sales of four million vehicles in the country since its inception in 1954. It sold its four millionth vehicle in the domestic market on October 30. It had reached the 1-million mark in 1991-92.
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