It’s true, we [the Netherlands and Sweden] are small northern countries. We don’t have big German conglomerates to help us out. I just felt like we have to stand together because we’re the same people, we have the same DNA.
Spyker CEO Victor Muller explains his firm’s racially-charged interest in Saab to the LA Times‘ Dan Neil, while somehow managing to avoid any reference to Chris Bangle. Does this mean Muller is OK leaving Saab production in Sweden as a term for the European Investment Bank Loan?
Absolutely. As a matter of principle. The only truly authentic thing about a brand is provenance. The [Porsche] Boxster is built in Finland, OK, no problem. But could they be built in Mumbai? Sure, they’d be 20% cheaper but nobody would buy it.
Sigh. Given Muller’s soft spot for ethnicity-based branding and the sale of 9-5 tooling to China’s BAIC, we’re going to guess that the Saab-Spyker deal isn’t going to work out so well. [Hat Tip: Thor Johnsen]
Cars are often seen as vices. But they also offer the possibility of moral redemption. Take this Lambo-door ZX2, for example. When I saw it on the side of Hwy. 99, my instant reaction was one of utter derision. Obviously, the door geometry played a part in that. But is it fair to judge a car by a twisted hinge alone? But it was more than that; I realized the car itself was a big part of my prejudice. Where was that coming from? Time for some serious soul searching. Read More >
A few days ago I captured some news from Swedish Aftonbladet.se that Beijing Auto (BAIC) is buying Saab’s now to be replaced 9-5 technology. Even though the Koenigsegg-Saab deal fell apart, and BAIC were a part of the investor group, the Chinese has not given up the idea to build Saabs in China. At the time I couldn’t find any other reports on this, and wondered wether Aftonbladet had done some creative journalism, but yesterday, Nyteknik.se reported the same news, citing their own sources. They’ve even confronted Saab’s spokesperson Gunilla Gustavs, but of course she can not, will not comment on that.
Having planned to idle production plants for a mere ten days over the winter break, Chrysler is responding to weak sales by extending the holiday shutdown of several plants to three weeks or more. The WSJ reports that Chrysler’s Windsor and Brampton plants (minivans, 300/Charger/Challenger) will shut down starting December 21 and will idle through January 18. The Toledo plant (Jeep Wrangler) will also idle beginning on December 21, and will resume production on January 11. Chrysler is also said to be considering extended production shutdowns at its Detroit Viper factory (which is entering final production anyway) and an unspecified Ram plant. Unless December sales numbers turn out to be humdingers, this winter vacation could possibly go on even longer, as Chrysler struggles under falling sales and a 64-day supply inventory.
Sajeev I have a 2009 black Impala and I plan to keep it a long, long time. I’ve always been a twice-yearly wax guy. Black paint is always different. Should I wax twice yearly? Do I need to buy different wax?
Fresh details on GM’s Asian wranglings are coming in, and it seems that SAIC paid The General a mere $85m for the one percent needed to control the joint venture. GM’s Nick Reilly tells the New York Times:
the 51 percent stake would give S.A.I.C. the right to approve the venture’s budget, future plans and senior management. But the venture has a cooperative spirit in which S.A.I.C. has already been able to do so… S.A.I.C. wanted to have a majority stake to consolidate the venture in its financial reporting
Which is about as credible as the conclusion that the Shanghai and India deals are going to provide GM International with a meaningful amount of cash with which to rescue its European and Korean divisions. As it turns out, the Indian deal isn’t going to translate into free cash for GM. GM and SAIC will set up a joint Hong Kong-based investment company, which GM will give its Indian operations and SAIC will fund with $300-$530m, bringing its overall value to $650m.
The AP reports that GM’s Ed Whitacre is reshuffling executives, turning an already-nervous RenCen on its head. Whitacre has elevated global engineering boss Mark Reuss to take charge of US operations, not an entirely surprising decision as the former Holden boss’s star had clearly been rising. Considerably more shocking was Whitacre’s decision to strip Bob Lutz of his marketing position and roll that responsibility into Susan Docherty’s Sales position. But don’t cry for the man called Maximum: Lutz will remain vice-chairman, will become “an adviser on global product development,” personally advising Whitacre on the auto industry. Nick Reilley, who has been GM’s international fix-it man, has been appointed President of GM Europe, while Diana Tremblay has been named vice president, Manufacturing and Labor Relations. “I want to give people more responsibility and authority deeper in the organization and then hold them accountable,” Whitacre said in GM’s statement, found here.
What, GM actually has the money to BUY companies? Suzuki says they want sell the whole shebang in their 50:50 joint venture in Canada to their JV partner, General Motors, says the Nikkei [sub]. That would be the end of a more than 20-year marriage. Read More >
And so it happened. Xinhua (translation via Gasgoo) has put on the wire that General Mayhem will “transfer half of its Indian operations to SAIC Motor by setting up a 50-50 joint venture there with the Chinese partner.” As expected, “GM and SAIC have also reached an agreement to transfer 1 percent of GM’s stake in their 50-50 Shanghai car venture to SAIC.” With that little percent, SAIC has a controlling majority of the Chinese joint venture. What for? Read More >
China and the world are waiting for a press conference to be held at 5pm local time (0900 zulu,) for which GM is promising “some important GM news,” relating to SAIC, says Reuters. Nick Reilly will take time off from restructuring Opel, and will personally host the conference.
It is widely expected that GM will cede control of the 50:50 China joint venture by selling 1 percent to SAIC. They will also most likely announce that GM will transfer half of GM’s India operations to the Chinese company. Read More >
If there’s a word to describe the feeling inside GM right now, it would be “nervous.” Though nobody was surprised that Fritz Henderson would leave at some point, it’s clear that his ouster was strangely timed and indicative of Ed Whitacre’s desire for rapid results. In an instant, Whitacre public image went from Iacocca-wannabe-pitchman to hard-charging Texas executive, seemingly defined by (get this) his penchant for killing rattlesnakes by pinning them with a stick and crushing their heads with a rock. So vivid is this metaphor, that according to Businesweek‘s David Welch, a number of GM executives actually offered their resignations to Whitacre immediately following the Henderson’s canning. Though Whitacre declined to let the bloodletting continue, a numberofcommentators now appear to believe that Whitacre wants to run GM himself. Though pay caps will be the easy excuse for not finding a new CEO, the board of director’s activism in clashing with Henderson over the Opel sale could discourage other executives from even considering the job. Moreover, Whitacre’s history of taking over companies and molding them in his image is well-established from his time at SBC/AT&T. So, will Ed Whitacre drop the pretense and the word “interim” from his title, or is he really just clearing the way for someone else?
Bowing to legislative pressure, GM and Chrysler have announced today that they will initiate reviews of the dealer cull undertaken during bankruptcy. GM is announcing a “Comprehensive Plan To Address Dealer Concerns,” while Chrysler characterizes its agreement as a “Binding Independent Review Process for Discontinued Dealers.” Both firms take pains to thank Senator Dick Durban and Rep Steny Hoyer for their leadership in preparing the non-legislative conclusion of months of bitter acrimony. Culled GM and Chrysler dealers, you know who to make your campaign donations to… unless you’re a member of the dissident group the Committee To Restore Dealer Rights. According to Automotive News [sub], the group says the new plans will only allow “between 39 and 51” culled GM dealers to be reinstated. “The GM proposal guarantees that they would win every arbitration,” says one member of the committee, who alleges that the new process is based on the same allegedly flawed data the initial cull was based on. Hit the jump for the plan outlines.
For most of the last 20 years, Ford and Mazda have enjoyed a symbiotic relationship which worked quite well. Ford needed Mazda’s engineering and Mazda needed Ford’s volume to keep their profit margins. In short, everyone was happy. Then came the recession. Ford needed money and it needed it fast, so they mortgaged their logo, cut staff and closed factories. But curiously, Ford divested a huge chunk of Mazda which netted them, in the auto world, very little money. Ford reduced their 33.4% stake in Mazda to 13.4%, netting $540 million, but effectively losing Mazda. Not that Ford’s Mark Fields is worried.
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