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perception is everything
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Posted by James [Email] (more from James) on Thu, 5 Mar 2009 09:40:52 Share Post by Email
In Reply to: Be careful what you wish for, Noel, Wed, 4 Mar 2009 10:15:36
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Absolutely. Whether or not the cars have anything related to a parent Chinese company in them, the perception will kill the brands. GM + Ford were bad enough. This will be an order of magnitude worse. The existing customers will run from the brand. Any future customers will be in China. But, perhaps that is where the market is?

That said, philosophically, I disagree that Hyundai/Kia is much better. Look at the Amante: it sure isn't the Jag or Merc it's imitating. The veneer is very thin! Sure, the cars are better than Chery (I've seen the youtube videos - yikes!), but they weren't in the early days. The Chinese are new at it and will progress in much the same way as the Koreans - copy as much as possible, do the minimum to meet the safety specs needed for advertising purposes, + undercut on price. Not Saab or Volvo values...

On a positive note, the comments re potential Chinese ownership came from the independent analyst, not from Jan Ake Jonsson, so her opinion may be irrelevant. Many of his comments were reassuring, in particular the last bit about going back to traditional Saab values and:

"In today's auto industry, there are many more cooperative projects between manufacturers without ownership,"

Imho, the best thing for both Saab + Volvo is for them to work together in Sweden and find local economies of scale (R+D, testing, automation, etc). Their values are substantially the same. A scaled back approach with fewer but better differentiated models is imho the way to go to keep the costs down + enable less invasive investment options... and if that requires platform sharing, so be it. I'd rather buy a Saab that shares a common platform with Volvo, than with GM or Ford. I really want to see a Saab based on the Volvo Recharge concept (on which Saab collaborated). I think it will be insane!

James...

posted by 69.63.6...


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