Fiat CEO Sergio Marchionne revealed earlier this week that he envisions leading Indian carmaker Tata Motors, as becoming one of Fiat's most important long term strategic partners, with the potential scope for co-operation extending well beyond cars, and on to commercial, industrial and agricultural vehicles.

Last month, Fiat signed a 'Memorandum of Understanding' with Tata Motors (part of the giant Indian Tata Group) to explore areas of possible co-operation between the two companies, and just last week a committee was formed to study the possible options in detail. Marchionne now sees the potential for the two as being much larger. Tata Motors - who have global ambitions of their own, already have a worldwide distribution network, which is particularly strong in Asia, and he sees Fiat gaining access to this as being particularly useful. Tata Motors is also a big worldwide player in the heavy commercial vehicle sector. Fiat themselves are represented in this area by their trucks-to-buses IVECO division, and in the agricultural machinery and equipment sector by CNH Global, both of whom could also possibly work to mutual benefit in the long term future with Tata Motors.

In an interview this week with Italian daily newspaper Corriere della Serra, Marchionne said, "'Together we could have global ambitions, building wider alliances. I would like, as an example, to make in India, a common engine for the Asian market. During the interview Marchionne also alluded to new industrial co-operations planned for the IVECO division, which he said is also set to expand the scope of its operations in China.

FIAT GRANDE PUNTO ORDER BOOK CONTINUES TO GROW

Meanwhile, advance orders for the new Fiat Grande Punto had climbed to 23,000 by the close of last week, the Turin firm announced. This was well up from the 15,000 orders that Fiat had received at the end of its much-heralded 'Open Week' held the week previously at the 700 dealerships they have spread across Italy. Fiat expect to build around 82,000 Grande Puntos by the end of this year.
 

They aim to produce a further 360,000 in 2006, although Fiat Auto CEO Sergio Marchionne believes this target can be comfortably surpassed. The new 'compact' model is now churning out of the Mirafiori plant and already being delivered to Italian customers.

At the same time the 'old' Punto model continues to shine, it was the best selling car in Italy last month, with 13,416 registered, an undisputed position it has held for quite a few years. Fiat expect to continue building the older model for at least the next 15 months, offering it at a lower price than the new Grande Punto (whose range price starts at 11,111 euros). The existing Punto model has also recently been licensed for assembly - to start next year - by Serbian national carmaker Zastava, who themselves have a long history of building Fiat models under licence.