Fiat paints Tatamobile bodies at its plant  ( June '29,2006, HBL)

As a beginning to the phase two of the alliance between Fiat and Tata Motors, Fiat India has now started painting Tatamobile 207 bodies at its Kurla paint booth.

Mr Giovanni De Filippis, Managing Director of Fiat India, said: "We are painting 3,000-4,000 bodies of the Tatamobile on a monthly basis, thus optimising the paint booth facility. The idea is to be self-sufficient through internal means and the paint booth plays an instrumental role in sourcing revenue for the company."

Besides catering to the Tatas, the company paints 250-300 Fiat cars every month.

Outsourcing of the paint booth is an indication of various other activities that may commence soon.

When the alliance was announced in January at the Auto Expo 2006, the company did state activities involving sourcing of technologies, power trains and major aggregates from Fiat, sharing of common vehicle platforms between the two companies, and a possible joint development of models that could be sold by both companies.

Mr De Filippis had mentioned that fresh announcements were round the corner that would further signify the alliance between the two auto majors; the alliance has been fruitful for his company as sales have risen compared to last year.

Since March, marketing activities such as select dealerships selling both brands under one roof has led to sales of 260 Fiat units in May.

Sales have primarily risen as Fiat took all measures to ensure continuous supply of spares across all its authorised dealers and service stations in the country.

Moreover, Mr De Filippis said, prices of all Fiat models are in line with existing competition.