Hot wheels, deals in auto world
Changing of the guard: Aston Martin is pushing the development of the Rapide (top) after the company was sold to a conglomerate while Volkswagen is said to be keen on the Asia Pacific market and may link up with Proton. Above is a Volkswagen Fox (L) and Proton Gen2. Pictures: BT
Wednesday, March 21, 2007
IT HAS been a very interesting week in the auto industry, apart from the lavish spread of new cars and concepts at the Geneva International Auto Salon, movements deep within the bowels of the beast are also providing much talking point.
Firstly, Ford has sold off Aston Martin and many Union-Jack waving Britons are happy that it is back in the safe and very British hands of Prodrive boss, David Richards. The rally-prep guru headed a consortium of petrolheads who figured that Aston Martin has so much potential and is too specialised for a large corporation like Ford to take advantage of.
Now that the deal has been inked, the new management is rushing to sign off the new Rapide four-door supercar, preferably ahead of Porsche's imminent launch of their Panamera sports saloon.
Although Aston Martin has been sold off by Ford, the American company is retaining US$40 million investment in the company and if that is not assurance enough that Uncle Henry is still a dominant force in the company, Newport Pagnell is calling on Sweden for their safety engineering.
Volvo will be responsible for making the Rapide more responsible with a myriad of safety features which has made Sweden's most famous export the preferred family car for many.
We have seen many specialist companies go under after a transfer of ownership from one enthusiast to another but the market is optimistic that Richards can help to transform the struggling British firm back to greatness. Trouble is, greatness for Aston Martin usually means interesting cars but never really an explosion in sales.
Richard's decision to maintain a close working relationship with former owner Ford is one of the best indication why the venture should succeed, management agility of a small team with the safety from storm of a large corporation.
This is especially true when it comes to purchasing parity with the big boys. Aston Martin will continue to enjoy volume discounts though Ford, especially on specialty materials such as aluminium.
Talking about the small taking refuge next to big brother, Volkswagen recently announced that it is looking at producing cars that are specifically targeted at the Asia Pacific market.
Some say that the more reasonably priced model, which may sit below its current entry level Fox model, may be produced in Malaysia, further fuelling rumours that a deal with Proton may be inked in the next few weeks or within the March 31 deadline set by the Malaysian government.
Representatives from Proton and Volkswagen Malaysia remain as tight-lipped as ever but there is an excitement, or is it nervousness, about the deal coming through.
Malaysia's oldest and largest carmaker has been swimming in red ink for the past few quarters as its market share slides to record lows and showing little signs of recovering.
It is generally accepted that the company needs a strong foreign partner to help it back on its feet and names as varied as Daimler Chrysler, Ford, Mitsubishi, Peugeot-Citroen and even the mighty General Motors have been mentioned as potential suitors but Volkswagen currently appears to be the most likely.
The German company has enjoyed a strong track record with Skoda and their ability to transform the Czech state-owned carmaker into a dynamic modern brand within the last seven years is certainly a strong reason for them to be favourably considered by the investment arm of the Malaysian Government, Khazanah, which is the majority shareholder of Proton and they are the ones negotiating the deal on behalf of the national car company and the government.
Local automotive conglomerates such as DRB-Hicom and Naza are also showing interest in Proton. Privately, some observers are saying that the two local companies may not be a good long term solution for Proton which needs a partner that can explore its potential and not only take marketing advantage of its preferred status.
Concern that a Volkswagen takeover would affect many underperforming local vendors is also a sticky issue which is expected to flare up if and when the deal is signed.
What is clear is that Proton needs to start showing better results if it wants to continue. "Proton is fighting for its life right now and not many people understand what that means," says an insider. The Brunei Times
Firstly, Ford has sold off Aston Martin and many Union-Jack waving Britons are happy that it is back in the safe and very British hands of Prodrive boss, David Richards. The rally-prep guru headed a consortium of petrolheads who figured that Aston Martin has so much potential and is too specialised for a large corporation like Ford to take advantage of.
Now that the deal has been inked, the new management is rushing to sign off the new Rapide four-door supercar, preferably ahead of Porsche's imminent launch of their Panamera sports saloon.
Although Aston Martin has been sold off by Ford, the American company is retaining US$40 million investment in the company and if that is not assurance enough that Uncle Henry is still a dominant force in the company, Newport Pagnell is calling on Sweden for their safety engineering.
Volvo will be responsible for making the Rapide more responsible with a myriad of safety features which has made Sweden's most famous export the preferred family car for many.
We have seen many specialist companies go under after a transfer of ownership from one enthusiast to another but the market is optimistic that Richards can help to transform the struggling British firm back to greatness. Trouble is, greatness for Aston Martin usually means interesting cars but never really an explosion in sales.
Richard's decision to maintain a close working relationship with former owner Ford is one of the best indication why the venture should succeed, management agility of a small team with the safety from storm of a large corporation.
This is especially true when it comes to purchasing parity with the big boys. Aston Martin will continue to enjoy volume discounts though Ford, especially on specialty materials such as aluminium.
Talking about the small taking refuge next to big brother, Volkswagen recently announced that it is looking at producing cars that are specifically targeted at the Asia Pacific market.
Some say that the more reasonably priced model, which may sit below its current entry level Fox model, may be produced in Malaysia, further fuelling rumours that a deal with Proton may be inked in the next few weeks or within the March 31 deadline set by the Malaysian government.
Representatives from Proton and Volkswagen Malaysia remain as tight-lipped as ever but there is an excitement, or is it nervousness, about the deal coming through.
Malaysia's oldest and largest carmaker has been swimming in red ink for the past few quarters as its market share slides to record lows and showing little signs of recovering.
It is generally accepted that the company needs a strong foreign partner to help it back on its feet and names as varied as Daimler Chrysler, Ford, Mitsubishi, Peugeot-Citroen and even the mighty General Motors have been mentioned as potential suitors but Volkswagen currently appears to be the most likely.
The German company has enjoyed a strong track record with Skoda and their ability to transform the Czech state-owned carmaker into a dynamic modern brand within the last seven years is certainly a strong reason for them to be favourably considered by the investment arm of the Malaysian Government, Khazanah, which is the majority shareholder of Proton and they are the ones negotiating the deal on behalf of the national car company and the government.
Local automotive conglomerates such as DRB-Hicom and Naza are also showing interest in Proton. Privately, some observers are saying that the two local companies may not be a good long term solution for Proton which needs a partner that can explore its potential and not only take marketing advantage of its preferred status.
Concern that a Volkswagen takeover would affect many underperforming local vendors is also a sticky issue which is expected to flare up if and when the deal is signed.
What is clear is that Proton needs to start showing better results if it wants to continue. "Proton is fighting for its life right now and not many people understand what that means," says an insider. The Brunei Times
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