Rumor Mill: Renault/Nissan looking at Saab

There may not be as much left to Saab as there once was, but what remains may apparently still be sellable....

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- tex

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Tex
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I heard that DongFeng Motor Group was sniffing. That would be interesting.

Reply to
ShazWozza

Interesting flow-on from GM selling their share in Fuji Heavy Industries (parent company of Subaru).

Craig.

Reply to
Craig's Saab C900 Site

Actually, save for the fact that Renault no longer is generally sold in North America, it could be a great match in my books. Renault made some pretty solid rigs with a lot of attention paid to better engineering solutions when last they were sold over here in Canada.

Ugly though it was, the Fuego Turbo ran like a scalded cat. You know, when it ran at all. I think Renault would actually try to run with SAAB advanced turbo technology - instead of trying to work out a ways to stuff a V6 from a Saturn in.

'Le SAAB' frères?

Reply to
Dexter J

Well, if GM do file for Chapter 11 on the 18th, then they might want to offload a little.

Reply to
NeedforSwede2

What is this news of GM filing for chapter 11 on the 18th of October?

SG

Reply to
Saab Guy

In message , Saab Guy writes

I heard (BBC Radio 2 in the UK business news the other night), that the American laws on bankruptcy change on 17 October so I'm guessing that there are provisions within the new law that will assist GM shed their restrictive unionised practices and pension liabilities with less pain than under the present rules Chapter 11 actually allows a company to continue whilst the management restructures and hopefully should emerge a changed and better things a few months/years later from Chapter 11 without the fear of creditors pulling the rug from under the company. Most famously, Enron has recently emerged from Chapter 11, a totally changed and much smaller company.

I'm sure if we wait a few minutes there will be a lawyer along to put me right!

Cheers,

Andy

Reply to
Andrew Sinclair

I highly doubt it. GM has a lot of cash on hand and could easily sell GMAC to get more.

Reply to
Nospam

Currently just a business rumour that the business press and radio have been picking up on.

But Delphi, the former GM, and now independant parts company that is the biggest supplier to GM, and has GM as it's biggest customer, is definatley filling for Chapter 11 to allow it to continue trading and try to work itself out of bancruptcy.

Reply to
NeedforSwede2

According to an article I read earlier this summer, GM has some serious issues with its pension & medical plans. In the last contract with the UAW union, GM agreed to pay something like 95% of all medical for all its current employees and 100% for all of its retirees. If anyone knows the state of the medical industry (yes, industry) in the US, there has been a massive increase in costs in the last decade, along the lines of 15-20% annually. These costs are starting to really cut into GM's bottom line, so much so that they are starting to rob their other divisions and accounts to pay for the cost of the medical plan. With the bankruptcy of Delphi, GM has to contractually take over the pensions of Delphi's workers, further cutting into its bottom line.

There has been talks of GM trying to renegotiate the contract with the unions but they will likely refuse to go along. This may well drive GM into a bankruptcy that will make Enron and WorldCom look like your local mom and pop store going out of business. All of its pensions would be off-loaded on the federal government's Pension Benefit Guarantee Corporation, freeing GM of the burden and forcing the US Government to pay for the whole stinking mess. Don't even try to figure how "W" will try to pay for that and give the country away to the highest campaign contributer.

My sources for this were the Dayton (Ohio) Daily News and Money Magazine from some time in June of this year. (Delphi used to be DELCO which stood for Dayton ELctronic COmponents, I believe)

Jeremy

Reply to
Jeremy Brown

Thanks Jeremy. It isn't looking good, looks like some of the less mainstream brands may get moved along then.

Reply to
NeedforSwede2

The Money article said that they will probably start shutting down the smaller marks, specifically Buick. Buick, like Oldsmobile before it, is viewed by many as a tired brand here in the US. They suggested that GM would probably go with five major brands- Chevy as their mainstream, Caddy as the luxury, GMC as their commercial line, Pontiac as the performance group and Saturn as the economy line. Hummer, Saab and Opel/Vauxhall/Holden (OVH for simplification) were really not discussed.

If they are going to kill another mark, I would think they would elimnate OVH or sharply reorganize the OVH low- and mid-tier brands in favor of Chevy. It would be a logical move on their part as OVH are "local" brands, each being (mostly) limited to one of GM's geographical markets. Chevy is currently found in three of GM's six markets- The EU, North & South America. Chevy and OVH have very similar reach of products though the low- and mid-tier levels, with OVH having some higher end products that would be Buick or Caddy in the US. Holden already has product overlap with Chevy and Pontiac in the US. By merging OVH's low- and mid-tier levels with Chevy it would establish two things- a single international brand in all six markets and a simplified product offering. The OVH top-tier brands could become the equivalent of Caddy of Europe. I now many view the OVH brands with some scorn overthere, but with some serious work, the marks could be revitalized much like Caddy was here in the US.

Saab is a bit of red-haired step child in GM and I honestly do not know what they will do with it. GM currently aim it as a competitor of Volvo and Audi here in the States. It is their only European mark in this hemisphere. In fact, Saab is GM's only European brand that has worldwide brand recognition in all six of its markets, which I see as a plus for the brand as an ongoing product. It is a rather American POV, but GM is still a US company.

Also, according to an AP wire report this morning, the UAW and GM have reached a tentative agreement to restructure healthcare cost. The Union will be picking up about 25% more of the costs associated with its members, their families and retirees.

Jeremy

Reply to
Jeremy Brown

I liked the last Aurora and the young set was gravitating to Olds when GM pulled the plug. Marketing 101? Buick has always been viewed as the car of choice for those that don't want to appear ostentatious in a Caddy. Marketing 101?

Dan

Reply to
Nospam

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