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Renault Eyes Purchasing Saab - Renault and
General Motors may be in Talk
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by Matthew C. Keegan
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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.
Renault may 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.
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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.
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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.
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About the author:
Matt Keegan is a contributing writing for PitStop Auto Parts
covering Saab parts http://www.pitstopautoparts.com/oem-saab-parts.html
, Covercraft Car Covers http://www.pitstopautoparts.com/1-covercraft-car-cover.html
and Brembo Brake Rotors http://www.pitstopautoparts.com/1-performance-brembo-brakes.html
and other fine car parts and car products.
See List of
all Cartypes and Carbrands related Articles
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you are in danger of violating the authorīs copyright and can be held legaly
liable for copyright violation. Published with permission.
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