SAAB to be sold to Renault?

[Jimgm]

http://www.autoindustry.co.uk/news/i...ews/11-10-05_3

Renault reported to have bid for Volvo Cars
11th October 2005

Renault is said to have approached Ford Motor Company with an offer to buy Volvo Cars out of Ford’s PAG brand group, in order to compete with German premium brands as it has been unable to do with its own large models. Ford is said to have declined the offer, but Renault, according to a Vehicle News report, has not abandoned the idea of acquiring a premium brand, such as Saab, since alliance partner Nissan’s premium Infiti brand has no profile in the European market.

Vehicle News also suggests that after considering some kind of financial relationship with DaimlerChrysler last spring, Renault-Nissan CEO Carlos Ghosn has more recently been studying the possibility of forming an alliance with either GM or Ford, with an exchange of shares, on condition that the US Administration undertook to relieve either firm from some of its pension obligations.

Other related stories circulating in automotive media last week included the suggestion that Ford CEO and chairman Bill Ford had approached Carlos Ghosn with an offer to take over his CEO role at Ford – an offer Ghosn had declined. Mr Ford said this week only that he regularly talked to senior executives of other OEMs.

[Boost]

Sell GM...................sell sell sell.......................

[gmwsag]

Renault is really doing good. Their American and Japanese sales are skyrocketing thanks to Nissan and Infiniti, which have improved in both quality and design. Nissan's new releases like the Pathfinder, X-Terra, and Altima have clearly been represented in the sales. Infiniti's highly praised M and highly ranked G-Series are competitors in the lux-market...something an Infiniti model never was in the 90s.

Plus, sales are very impressive...and Nissan isn't stopping there...luckily. A Nissan -Infiniti supercar is coming out, Nissan is redesigning its whole compact and sub $20K lineup to compete with new Civics and Scions, and an Altima hybrid is on its way for 2007. I'm not surprised. Carlos Ghosn: three cheers for the man of the hour!

It is no surprise that Renault is looking for its next 'bait'. I doubt it that Renault would buy Saab though. Saab is...how do we put this...too low to be fixed at this point in time. I wouldn't be surprised if Saab was put to rest by the end of this decade. Volvo, meanwhile, can take a hand from Renault. Volvo has its people...but it needs new followers...this is going to mean better, more influencial designs and bigger engines standard and optional for cheaper prices. Volvo can then become a competitor again.

I think Volvo would be a great buy for Renault.

[IAMCANADIAN]

I doubt it, GM spent a lot of money over the past 15 years on Saab and I think they want to make an effort on improving their lineup, plus Saab does better globally than just in North America alone.

[FoMoCo Fan]

Ford will not sell Volvo, not now, at least.

[AJR]

Originally Posted by gmwsag

Renault is really doing good. Their American and Japanese sales are skyrocketing thanks to Nissan and Infiniti, which have improved in both quality and design. Nissan's new releases like the Pathfinder, X-Terra, and Altima have clearly been represented in the sales. Infiniti's highly praised M and highly ranked G-Series are competitors in the lux-market...something an Infiniti model never was in the 90s.

Plus, sales are very impressive...and Nissan isn't stopping there...luckily. A Nissan -Infiniti supercar is coming out, Nissan is redesigning its whole compact and sub $20K lineup to compete with new Civics and Scions, and an Altima hybrid is on its way for 2007. I'm not surprised. Carlos Ghosn: three cheers for the man of the hour!

It is no surprise that Renault is looking for its next 'bait'. I doubt it that Renault would buy Saab though. Saab is...how do we put this...too low to be fixed at this point in time. I wouldn't be surprised if Saab was put to rest by the end of this decade. Volvo, meanwhile, can take a hand from Renault. Volvo has its people...but it needs new followers...this is going to mean better, more influencial designs and bigger engines standard and optional for cheaper prices. Volvo can then become a competitor again.

I think Volvo would be a great buy for Renault.

Yep, Renault/Nissan is doing very well. Just think, even with Nissan growing in this country, Toyota just keeps plugging along. For as impressive as Nissan is, Toyota is just that much more impressive. Detroit has two major foes heading straight for it and neither are slowing down in the process. I wonder if these two are the 1-2 punch that KOs Detroit. I hope not, but it appears that way. What can stop them?

[syr74]

The problem with anyone buying Saab now is that Saab's cars are so heavily GM based. Platform sharing is one thing, but these cars are so heavily tied to their GM cousins any purchaser would no doubt feel the need to redo the entire lineup in short order. And frankly, this is not helped in any way by the fact that Saabs are not the cars they should be. In essence if you bought Saab you would be buying the name, distribution network (assuming that isn't so heavily tied to GM now it is unsalvageable), and some factories....but not really any auto designs.

If GM realizes this and prices Saab accordingly then this could be an attractive deal for a perspective puchaser. If not GM will have Saab until it sinks into the dark, murky depths. As an example of what I mean, when BMW sold MG/Rover they quite literally paid the purchaser, in the form of a several million dollar "loan" they never expected to be paid, to take the company off their hands. And frankly, were it me I would much rather have taken MG-Rover off of BMW's hands at that time than buy into Saab at this point.

I would expect Renault to make a bid for ailing Jaguar long before they went after Saab.

[SonicAerio]

I could never see Ford getting rid of Volvo because the relationship is working out so well....Ford giving them money to create very appealing cars and Ford borrowing platforms(Ford 500) and technology(like safety features) from Volvo.

As for Saab, as much as I would like to see them do really well in the market...I think GM needs to sell them to a manufacturer that will give them the money and freedom they need to make independant vehicles that are world class....a allow Saab to recoup the reputation it once had..... GM has too much else on it's plate right now to deal with a spunky, small production company.....

But then again...Imagine the Nissan 2.5 turbo in the 9-3 or a twin turbo 3.5 in the 9-5....it could work out.....

I would rather see toyota buy them....just because they have so much money Saab could do whatever they wanted.....

[paul3230]

I say sell SAAB and use that money to pump back into NA to shore up the product line. That just means that's one less divison to use marketing, engineering costs. I don't think that SAAB is profitable are they?

[SonicAerio]

Originally Posted by syr74

The problem with anyone buying Saab now is that Saab's cars are so heavily GM based. Platform sharing is one thing, but these cars are so heavily tied to their GM cousins any purchaser would no doubt feel the need to redo the entire lineup in short order. And frankly, this is not helped in any way by the fact that Saabs are not the cars they should be. In essence if you bought Saab you would be buying the name, distribution network (assuming that isn't so heavily tied to GM now it is unsalvageable), and some factories....but not really any auto designs.

If GM realizes this and prices Saab accordingly then this could be an attractive deal for a perspective puchaser. If not GM will have Saab until it sinks into the dark, murky depths. As an example of what I mean, when BMW sold MG/Rover they quite literally paid the purchaser, in the form of a several million dollar "loan" they never expected to be paid, to take the company off their hands. And frankly, were it me I would much rather have taken MG-Rover off of BMW's hands at that time than buy into Saab at this point.

I would expect Renault to make a bid for ailing Jaguar long before they went after Saab.

Wow...very good points.....never thought of it that way.....Maybe Jaguar

[JVal14]

I don't think GM will give up Saab because it would be like selling a major part of the life raft that they're trying to build. They've dumped lots of money and time into Saab, and with generally positive reults. Saab may be a key to GM staying alive.

[kenman923]

Originally Posted by FoMoCo Fan

Ford will not sell Volvo, not now, at least.

They might if they continue down the road of unprofitability.

[syr74]

Originally Posted by JVal14

I don't think GM will give up Saab because it would be like selling a major part of the life raft that they're trying to build. They've dumped lots of money and time into Saab, and with generally positive reults. Saab may be a key to GM staying alive.

First rule of good business. You never consider the money you already spent when making a decision....those costs are dead, sunk. The only items you want consider are.....where is Saab right now?....where can we expect Saab to be in ten years?.......what else could we do with the money required to get there?

[member12]

Dump saab, and dump it now while you can, and spend the money to re-do Chevrolet's car lineup.

[a_v_s]

I can't really see Renault buying Saab, because it would clash with Infiniti. I mean putting a 2.5 Turbo or Twin Turbo 3.5 in the 9-5? What do you think is going to be in the GT-R? I can't see them putting the same engine that is in a $60,000 GT-R, in a $38,000 9-5.

I just don't see the point in investing in Saab, if the 9-3 is more than covered by the G35, the 9-5 more than covered by the M35/45, the 9-7x by the QX56, etc. And saab doesn't even have anything to compete with the Q45, GT-R, FX35/45, etc.

But all that aside. Let's say somebody does buy Saab. Should they keep it FWD, or should they make Saab RWD?