By Matthew C. Keegan
March 20, 2008
Is Saab for sale? Does Renault have its eyes on the Swedish automaker now owned by GM? Would GM consider a sale of Saab in order to raise needed funds and consolidate product lines? Let's speculate!
|
With the misfortunes of America’s
two largest automakers being trumpeted frequently on the news, it seems as
if little attention is being paid to some of the other automakers out there.
France’s Renault, once in poor shape itself, has rebounded nicely and is
prospering with its relationship with Nissan, a company it has controlling
interest in. Speculation is that Renault wants a greater piece of the luxury
car market, even beyond Nissan’s luxury division, Infiniti. Would General
Motors consider selling Saab to Renault or would the French automaker be
better off looking elsewhere? Let’s take a look at some options for Renault.
Make a bid for Saab. It is no secret that the Swedish automaker
hasn’t been much of a hit for General Motors. Unlike the other Swedish
automaker Volvo, itself owned by Ford, Saab has produced little benefit for
GM since being brought into the fold in 1990. A clash in management styles
hasn’t helped with GM’s line management style going up against Saab’s
egalitarian style. Although not exactly a luxury line, Saab could be
upgraded and give Renault renewed access to the American market and much
needed cash for GM.
Go after Jaguar. Much like Saab’s relationship with GM, Jaguar hasn’t
done a lot for Ford. Unlike GM, however, Ford has handled its international
acquisitions much better and has allowed its new holdings to continue to
plan and expand their product lines without excessive dictation from
Detroit. Still, the value of Jaguar remains strong and the time for Ford to
sell this British automaker off would be now. Let’s just see how well the
French and British work things out too!
Ramp up Infiniti. Even in expressing interest in acquiring another
automaker, Renault does have its own “in house” luxury line in Infiniti.
After a poor start, Infiniti has strengthened its product line and is better
poised to compete against Lexus and Acura. A careful “retuning” of Infiniti
could also yield a line of cars better suited to compete against BMW and
Mercedes who essentially lead the luxury car market in the Europe. Working
with the existing lnfiniti brand would be cost effective too.
Introduce a new luxury line. Much as Toyota, Honda, and Nissan have
introduced luxury lines of their own vehicles, Renault could do the same and
profit immensely. With Hyundai expected to do the same, Renault’s new luxury
division could give the automaker instant access to the luxury market and
prepare the company for reentry into the U.S.
As much as General Motors and Ford are reeling right now, neither Saab nor
Jaguar may be auctioned off. At present, both Swedish automakers have a
significant cross division investment that cannot be easily disconnected.
Planned vehicles in the Saab pipeline would have to be scuttled, which would
effectively reduce the automaker’s value overnight.
Renault may still be eyeing Saab, but the logistics aren’t that easily
worked out.
Update: As of March 2008, General Motors plans on keeping Saab part of its brand line up.
Author Information:
Copyright -- Matt Keegan is a contributing writing for PitStop Auto Parts covering Saab parts; Covercraft Car Cover; and Brembo Brake Rotors; and other fine products.