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Partnership with Chinese carmaker Saab deal Hawtai Collapses.
Saab story continues to offer more twists than the line drawing of a typical soap opera with new revelations this week that the Swedish automaker planned partnership with Chinese car company Hawtai Motor Group fell through as he presented lots been a week, according to the Detroit News talks between the two organizations reached an impasse.
Hawtai had been announced as an important new investor in Saab in a plan that would see the purchase of the company on September 29 percent of the company at a price of 172 million Hawtai, an important concern which produces 1 5 million cars a year to sell exclusively in China, had been eager to reach a technology-sharing relationship with Saab, as described in an article published by Automotive News Saab saw finally offer cars built by the Chinese in North America.
According to the President Saab Victor Muller, network brand dealers is the biggest asset and not on our sheet assets and Hawtai buy it for free Muller stressed that financial investment and time needed to build a reliable network dealers in the United States to intimidate any automaker abroad who seeks to enter the US market, and that Hawtai would be able to benefit from Saab showrooms selling vehicles of ultra-low prices.
That deep sixed the seemingly solid matter that had been hammered between the two automakers Like many business ventures between Western and Aboriginal Business Chinese organizations, approval of stakeholders Hawtai was necessary to move forward with planned investments, and Go- before was finally impossible to achieve Although Saab made an effort to revive negotiations with Hawtai he publicly backed away from the idea of an exclusive partnership between the two brands, Saab stating that it examines all Chinese investment options today.
Although the failure of the deal Saab Hawtai may seem like a setback for the European automotive company in difficulty, the partnership strategy with a company determined to sell inferior, sub-10,000 cars in the United States could not have been the best position for the automaker to take to begin, confusion of the brand that could have resulted in ultra-entry level car sharing exhibit space with oriented-top models Saab would not be a positive step for a brand that is fighting to restore his identity in the United States even more alarming comments by President Muller regarding the potential security issues surrounding Hawtai vehicles for import Muller characterized them as products that would use price low to overcome the problems of the buyer on security, indicating that consommateu rs in this segment would not worry estimate the five-star crash because the cars would look good.
Saab has always been associated with a carefully cultivated image that projects the values of technological sophistication, performance and automotive safely seemingly throw it aside in favor of a partnership with a car manufacturer Low willing to sacrifice security for the sales numbers could be major turn -off the brand loyalists who have stuck with the company car by eccentric times of financial storm.
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