Fiat CEO Sergio Marchionne and Tata Group President Ratan Tata, announced first details of their new tie-up this morning at the Auto Expo 2006 in New Delhi. The terms will see Tata Motors now assuming responsibility for the marketing and distribution of Fiat cars in the Indian subcontinent, while in return they will gain access to Fiat's long established worldwide dealer and distributor networks. "We are proud to have selected Tata as our partner in India," Marchionne told journalists during a press conference at the Auto Expo in New Delhi this morning, which also saw the unveiling of the Fiat Grande Punto and the Alfa Romeo 8c Competizione concept sportscar, while Tata Group President Rajan Tata commented: "Today is the start of the relationship of which I feel pleased and proud."

Sergio Marchionne and Rajan Tata together unveiled the new Fiat Grande Punto, a 90bhp 1.3-litre Multijet version, during the press conference, announcing that highly regarded the new 'compact' model, which already has an order book in the region of 100,000, will become available across Tata Motors India network of dealerships once they being selling Fiat models, including the Palio and Petra. The arrangement is scheduled to commence in March. Tata Motors will also gain access to Fiat Auto's Europe-wide dealer network, a strategically important step for the company - who are India's biggest carmaker - and who harbour strongly held ambitions to grow their operations globally. "We live in a boundary-less world. We hope to grow beyond the shores of India. Fiat has technology and the opportunities are endless," Rajan Tata told journalists this morning.
 

"The association will have enormous value to Tata Motors in terms of access to products, technology, components from a world-class company," he added.

Last September Fiat Auto and India's Tata Motors first announced that they had signed a 'Memorandum of Understanding' that would see them set up a committee to explore the feasibility of developing and building passenger cars together for both the Indian and Asian market. Today's announcement is the first stage of putting this new co-operation into full practice.

Marchionne also said this morning that he expected to see the agreement extended to embrace the development of new models, production arrangements, and the supply of components in the near future. "I'm confident that our cooperation with Tata Motors will further expand in the areas of product development, manufacturing and sourcing," he commented. The Fiat CEO also said that the deal was right for Fiat, who are moving in a new, swiftly upwards direction since he took over control. "We have the highest level of financial stability the group has had in the last 10 years," he added.