Who gets the say: GM or Magna?


I think Magna should bid for Volvo rather than Opel. Volvo is more suitable as a stand-alone unit (if they reduce the number of architectures for sedan and estate models which is a realistic idea since these models are so similar from a pricing and size point of view).

And if Magna bids for Volvo it also makes sense to bid for Saab. Today, Saabs and Volvos are almost identical from a product and pricing point of view. Most consumers would probably prefer near badge engineered Volvos to Saabs based on Opel models since Volvo has a better quality reputation and since the Volvo brand is more prestigious. The 5-cylinder Volvo diesel engines would make Saabīs products a lot more attractive to many consumers. Tooling for existing Saab models could be sold to China.

I also think that Saab needs a solution which is credible to the consumers immediately. People are reluctant to buy/lease Saabs since they are not sure whether the company and the brand will survive. They are concerned about the residual value and the possible loss of guarantees. If Saab would get the same principal owner as Volvo and share most components, that would be credible to the consumers.

Volvo and Saab is a perfect match since the cars are so similar in terms of pricing and technology but quite different as regards some aspects of the brand image, especially in Sweden. Saab owners in Sweden know that a Volvo is very similar to a Saab from a technology point of view. They may even think that Volvos are somewhat better from a quality point of view. But they still prefer Saabs to Volvo because they donīt like the attitude which is associated with the Volvo brand. They would rather buy an Audi or VW instead.


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