Renault has bid for Volvo, eyeing SAAB
10-12-05, 08:57 AM
#1
Speaks French in Russian
Thread Starter
Renault has bid for Volvo, eyeing SAAB
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.
http://www.autoindustry.co.uk/news/i...ews/11-10-05_3
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.
http://www.autoindustry.co.uk/news/i...ews/11-10-05_3
10-12-05, 09:27 AM
#2
Lexus Fanatic
My feeling is, if Renault wants a premuim brand, why buy Volvo? Let them start their own one. In fact, they already own an upscale brand......Infiniti.
Although in many ways it is a good idea the share technology and design....(Toyota / Subaru is a good example ), I'm getting concerned about too much power in the auto industry getting concentrated in too few hands and with too few individuals. For example, look at the huge mega-corporate conglomerates that are owned by Ford and GM and all the European and Asian companies they own. Outside of BMW, I can't think of a single truly independent auto company any more that sells cars in significant numbers.....EVERYBODY either owns some other company or IS owned by them....and most of today's newer vehicles are built on common and rebadged platforms. Even Porsche now is part of the Porsche-Audi-VW complex, and THEY own several British and Italian firms. Look at the former " British " auto industry, for example...it simply does not exist any more. EVERY British car firm has either gone out of buisness, been sold, or is operated by a non-British company .
Somehow, a way is going to have to be found to not only stop future mergers but actually get the existing mega-companies to start breaking up and allow auto firms to be free and independent again...like they were years ago.
Although in many ways it is a good idea the share technology and design....(Toyota / Subaru is a good example ), I'm getting concerned about too much power in the auto industry getting concentrated in too few hands and with too few individuals. For example, look at the huge mega-corporate conglomerates that are owned by Ford and GM and all the European and Asian companies they own. Outside of BMW, I can't think of a single truly independent auto company any more that sells cars in significant numbers.....EVERYBODY either owns some other company or IS owned by them....and most of today's newer vehicles are built on common and rebadged platforms. Even Porsche now is part of the Porsche-Audi-VW complex, and THEY own several British and Italian firms. Look at the former " British " auto industry, for example...it simply does not exist any more. EVERY British car firm has either gone out of buisness, been sold, or is operated by a non-British company .
Somehow, a way is going to have to be found to not only stop future mergers but actually get the existing mega-companies to start breaking up and allow auto firms to be free and independent again...like they were years ago.
10-12-05, 09:33 AM
#3
Speaks French in Russian
Thread Starter
GM needs to sell. Way to many brands and they are doing a poor job of managing Saab. Saab basically has no identity anymore. More than half of the Saab lineup are not true Saabs. They have a few cars that are built off of existing platforms and others are just sloppy rebadges.
If this deal goes through GM will be selling yet another brand to one of its greatest rivals.
Ford will never give up Volvo, well not anytime soon. Ford is giving them much money to develop attractive new cars that are selling very well for such a small brand, and in return Volvo is giving them platforms and safety equipment. That is how you are suppose to run a company. GM take notes.
If this deal goes through GM will be selling yet another brand to one of its greatest rivals.
Ford will never give up Volvo, well not anytime soon. Ford is giving them much money to develop attractive new cars that are selling very well for such a small brand, and in return Volvo is giving them platforms and safety equipment. That is how you are suppose to run a company. GM take notes.
10-12-05, 09:34 AM
#4
Super Moderator
Living south of the border, I have seen Renault (on the street and on the track). There Clio model is the really big seller (Clio Sport is fantastic). They win a lot of owner satisfaction surveys down here on that car alone.
Renault is known down here a as a small compact model car. There Megane series just does not catch on as well. Peugeot has similar issues with bigger models and the 2 and 3 series are the ones that sell down here.
Even Nissan, part of Renault, does not sell well on Maxima or even the Q45. Again, whatever Renault has or owns, identified with small compact cars.
BTW, we only see the Q45 down here, no other marks of Infiniti, so that tells you something. Infiniti does not have an international presence, Volvo does.
Volvo be better than trying to do Saab. Saab is such a dismal failure down here, but Volvo gets major accolades for performance for the price.
Renault is known down here a as a small compact model car. There Megane series just does not catch on as well. Peugeot has similar issues with bigger models and the 2 and 3 series are the ones that sell down here.
Even Nissan, part of Renault, does not sell well on Maxima or even the Q45. Again, whatever Renault has or owns, identified with small compact cars.
BTW, we only see the Q45 down here, no other marks of Infiniti, so that tells you something. Infiniti does not have an international presence, Volvo does.
Volvo be better than trying to do Saab. Saab is such a dismal failure down here, but Volvo gets major accolades for performance for the price.
10-12-05, 09:43 AM
#5
Lexus Fanatic
I agree with a lot of what you say, mag, but using that reasoning ( Saabs are not true Saabs anymore ) , you could also make the arguement that Volvos are not true Volvos anymore, For many years Volvos were stuffy, square, shoebox-shaped, built-like-a-tank rear drive safetymobiles. What are they today......after Ford's takeover? Still safetymobiles, yes, ......but slick, aerodynamic, front-drive (or AWD), not-so-well-built, unreliable, and prone to breakdowns and recalls.
10-12-05, 11:13 AM
#6
Lexus Fanatic
Originally Posted by mmarshall
My feeling is, if Renault wants a premuim brand, why buy Volvo? Let them start their own one. In fact, they already own an upscale brand......Infiniti.
We don't have infinity here. If they introduce it here they 1st have to build the brand. With volvo they allready have the image.
10-12-05, 11:44 AM
#7
Lexus Champion
Originally Posted by Richie
This is for the European market.
We don't have infinity here. If they introduce it here they 1st have to build the brand. With volvo they allready have the image.
We don't have infinity here. If they introduce it here they 1st have to build the brand. With volvo they allready have the image.
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10-12-05, 11:48 AM
#8
Lexus Fanatic
Originally Posted by Leets
ya, what Richie said... it would be a lot easier for Renault to just buy a brand that is already established, than go through all the struggle of attempting to establish an entirely new one.
10-12-05, 12:39 PM
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Originally Posted by Leets
ya, what Richie said... it would be a lot easier for Renault to just buy a brand that is already established, than go through all the struggle of attempting to establish an entirely new one.
Easier to invest in what's already there than to start from scratch...although I think it would be benefical for Nissan/Renault to introduce Infiniti in Europe.
Last edited by Falcon LS; 10-12-05 at 12:44 PM.
10-12-05, 01:57 PM
#12
Lexus Fanatic
Originally Posted by Falcon LS
Would more of less be the cheapskate approach. Easier to invest in what's already there than to start from scratch...although I think it would be benefical for Nissan/Renault to introduce Infiniti in Europe.
Easier to invest in what's already there than to start from scratch...although I think it would be benefical for Nissan/Renault to introduce Infiniti in Europe.Look at Lexus, it's still a small player in the European market. Imo partly because they haven't had any models with diesel powered engines.
If they do the same with infinity they will need to invest a hell of a lot more in building the brand and developing new diesel engines.
Buying into a known higher end brand that allready had both gasoline and diesel engined models would save them a lot of time and money.
Smart business if you ask me, less investment and less risk.
10-12-05, 03:12 PM
#13
Lexus Champion
Originally Posted by Richie
I don't agree.
Look at Lexus, it's still a small player in the European market. Imo partly because they haven't had any models with diesel powered engines.
If they do the same with infinity they will need to invest a hell of a lot more in building the brand and developing new diesel engines.
Buying into a known higher end brand that allready had both gasoline and diesel engined models would save them a lot of time and money.
Smart business if you ask me, less investment and less risk.
Look at Lexus, it's still a small player in the European market. Imo partly because they haven't had any models with diesel powered engines.
If they do the same with infinity they will need to invest a hell of a lot more in building the brand and developing new diesel engines.
Buying into a known higher end brand that allready had both gasoline and diesel engined models would save them a lot of time and money.
Smart business if you ask me, less investment and less risk.
And correct me if I'm mistaken, but from what I've read Europeans are traditionally bigger label freaks than the U.S. In the past the market hasn't really warmed up to "new" brands. In my book on the history of Lexus the author describes the European press' response to Lexus as being less than favorable. I guess Europeans are just harder to fool with rebadged cars.
10-12-05, 03:17 PM
#14
Lexus Fanatic
Originally Posted by Leets
Once again... ya, what Richie said.
And correct me if I'm mistaken, but from what I've read Europeans are traditionally bigger label freaks than the U.S. In the past the market hasn't really warmed up to "new" brands. In my book on the history of Lexus the author describes the European press' response to Lexus as being less than favorable. I guess Europeans are just harder to fool with rebadged cars.
And correct me if I'm mistaken, but from what I've read Europeans are traditionally bigger label freaks than the U.S. In the past the market hasn't really warmed up to "new" brands. In my book on the history of Lexus the author describes the European press' response to Lexus as being less than favorable. I guess Europeans are just harder to fool with rebadged cars.
You are pretty much spot on there.
10-12-05, 04:25 PM
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Originally Posted by mmarshall
I agree with a lot of what you say, mag, but using that reasoning ( Saabs are not true Saabs anymore ) , you could also make the arguement that Volvos are not true Volvos anymore, For many years Volvos were stuffy, square, shoebox-shaped, built-like-a-tank rear drive safetymobiles. What are they today......after Ford's takeover? Still safetymobiles, yes, ......but slick, aerodynamic, front-drive (or AWD), not-so-well-built, unreliable, and prone to breakdowns and recalls.
I've never liked fwd Volvos anyways, and Renault is going to make the Volvos look really really really weird.