Re: of course it is a bit difficult to trust... - Saab General Bulletin Board - Saabnet.com
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Re: of course it is a bit difficult to trust...
Posted by Tim (more from Tim) on Mon, 24 Oct 2011 04:54:57
In Reply to: of course it is a bit difficult to trust..., Stan, Sun, 23 Oct 2011 21:26:49
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What deception? It was always a MB take-over of Chrysler (that's what more than 50% of shareholding means). The "merger of equals" was simply a fig leaf that both sides winked at in order to get the merger past political busybodies who might object to the maker of Sherman tanks being bought by the maker of engines for Tigers. The real failure in Daimler-Chrysler was in MB's designs with ridiculously high production cost and poor reliability being unable to compete, even at low prices, in the market place without the tri-star on the hood.
Saab on the other hand is a well established premium brand that specializes in FWD and turbo charging, both directions that BMW is going in order to meet fleet average standards. Saab has far greater brand equity and global presence than Rover, and has a much smaller existing work force / retired work force in high labor cost country.
Sweden is a country of 9.5 million people, not much bigger than New York City (not even the state). For comparison, Malaysia (owner of Lotus) has a population almost 3 times as large. What Saab needs is backing by a substantial automaker, like BMW or Toyota, but whose parts bin is untainted by ill repute like GM. The uncertainty regarding company future (i.e. warranty and parts) is what's killing sales. Even if the take-over has to come from China, it has to be from one of the top tier car makers there. In many ways, Youngman/Pangda were a little of VM; i.e. middlemen flippers, not the ultimate owner/user of the brand to make large volumes of cars.
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