After K.Kerkorian’s initiative to consider a Renault / GM collaboration, some talks are supposed to take place, obviously in a much more secretive context. Far less spectacular but potentially full of unexpected outcomes, some contacts have been organized between C.Ghosn and Bill Ford, according to this article of the NY Times.
The future is uncertain since, the article reports, everybody in this industry is now interested to talk to C.Ghosn. Apparently, Jaguar is for sale, and J.Nasser, former CEO of Ford, backed by a fund, might be interested.
The case of Volvo is unclear. The failure of a merger with Renault in the 90’s is still a painful memory. Particularly since the take over by Ford which took place in 1999. Since then, not much has been reported on this collaboration.
Here are some comments by swedes reacting on an article in Dagens Industri, the leading business newspaper in Sweden, about Ford. A reader finds it funny if the missed merger with Renault in 1993 was completed now, which he sees as a possibility. Another is convinced that in case Renault and Ford decided to collaborate, Volvo would be sold to Renault.
Finally, here is what an engineer from Volvo says : “We might as well achieve what P.Gyllenhammar had planned 13 years ago. For Volvo, Renault is a partner which is more secure than Ford. It is a solid group, which has proved its capacity to work internationnaly.” Let us remind that in 1993, the project had failed because the state-owned Renault was rejected by the swedish shareholders.
The same Volvo manager then declares publicly what everybody has known in Sweden for years : “Within Volvo, the Ford culture, with its reporting and top-down management, is more and more experienced as destructive.”
This automotive saga will keep on with interesting perspectives ahead of us.
It seems like if some funds are trying to buy Volvo shares on the market. Renault said months ago their 20% is just a financial investment.
Posted by: Ron | 29 August 2006 at 22:45
That is right. Volvo is profitable and attractive. A Swedish Bank (Handelsbanken)holding 6% of the company, is said to be interested too. Renault has other priorities for the moment, and Volvo is expensive for a direct acquisition. But dealing with Ford would change everything and Volvo remains an excellent opportunity for Renault to gain credibility on the higher end of the market.
Posted by: DT | 30 August 2006 at 12:32