German Car Zone

In Automotive news there is an inteview with Stefan Krause from BMW and he reveal that they are thinking about to create there own environment-friendly brand.
He also says that they are intrested in Volvo and Saab.

Eni, something you know about?

I just don't see on why would they co-operate with Volvo or Saab. Maybe developing passive safety with Volvo but other than that.

I thoughe he said that they thought about aquiring saab or volvo but that they finally rejected that idea ?

BMW are still eying premium FWD brands like Volvo, Saab, Alfa Romeo, Lancia. Unfortunately same are not fore sale, and some are - but the price is too high.

Also expect - when / if ever - BMW buys such a brand that the product portfolio of such a brand would change A LOT.

A fourth brand - for green cars - is almost a reality. Expect smart-like super efficient city cars. Of course MINI BMW & RR will still getting improved EfficientDynamics solutions, but each to meet proposed strict CO2 EU standards BMW also needs a fleet of near-zero emission cars ASAP.

Just like all the other carmaker are slowly entering the micro-car segment, BMW will also enter the segment with their own brand: occupying the premium end of the segment (just like eg. smart) while models from eg. VW, Toyota, Kia, Fiat will be more reasonably priced. Yet the pricing in this segment is very tricky, and that can be quite a problem for BMW.

This fourth brand will have a special rear-engine-RWD layout just like eg. Smart, and therefore BMW are looking for a platform donor (hoping Daimler will cooperate), since the development of such platform on their own wiould be to expensive. Daimler are also interested to sell smart platform - to make smart division profitable.

Regarding the FWD premium brand - BMW are interested since MINI platform is just too expensive. To meet future BMW profit margin standard MINI should have sold at least 500k units per year. Therefore BMW are interested to acquire a FWD brand - to share development with MINI. Meaning most of the product would be sharing platform with MINI, yet the shapes would be slotted between MINI & BMW products: eg. small sedan, small classic wagon, conventional mini-van. Also possible: co-developed with other carmaker are: entry luxury FWD car to compete with eg. Lexus ES, Acura TSX etc, and a mid-sized SUV to compete with Lexus RX.

Of course BMW will only buy such a brand if the price is reasonable, and the company's organizational structure & culture is similar to the one in BMW AG. Obviously Saab or Volvo could fit in BMW AG well.

Oooh...I really like the idea of BMW getting Saab before GM completes its total destruction. BMW would let Saab tinker with that variable compression engine they showed a while back that GM said "no" too. Saab knows a little about how to make a FWD car handle and Mini could show them how to perfect it. BMW could also show them how to make a proper suspension that handles and doesn't feel like the 4 corners of the car are tied to cinder blocks. Better fit and finish and most of all a sense of what a Saab is which BMW could no doubt do better than GM ever would be able too. Volvo no, Saab yes. BMW would make Saabs "Saabs" again.

M

Like I said in the other thread, I think Volvo would be a perfect match in terms of a green company because you can also use its safety as another selling point. If BMW would buy the company, and drastically reduce its price as not to steal sales from its own range, I think that would really revamp Volvo.

Saab would work too, but Volvo would be that much easier to start with.

I agree about the Green and that Saab would be easier to start with, very true. GM has made Saab into GM Europe. I won't even discuss what they're tried to sell here in the U.S. as a "Saab". BMW would cut that BS immediately. I was just looking at it from a sporty point of view, being the IMO Saab is much more so than Volvo. Either would would work though no doubt.

M

Saab has been butchered by GM beyond it being worth reviving.

And Volvo also got mangled quite a bit by Ford.

Why would they bother investing money in these firms?!

Because BMW has shown a remarkable skill at perfecting other brands. I think Volvo is still pretty much its own brand, but you're right about Saab. I do think either is worth saving.

M

IMO Saab is less developed / shaped brand - also with lower global brand recognition, so I guess BMW would easier re-shape & re-position the brand. Although Volvo has better brand image than Saab - in general public.