We’ve seen plenty of brands change hands in recent years as the auto industry has built itself up into a garbled mess. But with cash drying up, those brands that at one time seemed like a good investment, are now nothing more than liabilities.
Detroit’s Big Three have built a reputation for gobbling up brands. Whereas Japanese automakers have produced new brands when entering new markets, such as Toyota’s creation of Lexus and Scion, or Nissan’s creation of Infiniti, the Big Three have found greater comfort in buying up marquees rather than starting from scratch.
That strategy has certainly caught up with the Big Three, and now many of their brands have already been sold off, such as Land Rover and Jaguar which belonged to Ford until recently. But in an economic climate where everyone around the world is feeling the pinch, who would want to buy an ailing automaker? India’s Tata Motors has already taken over two suffering brands from Ford, meanwhile Chinese automakers or Tata’s rival, Mahindra, seem to be the only viable options. Let’s look at what they’re being offered.
Hummer
While there may be plenty of city folks that love the Hummer brand, it doesn’t change the fact that the SUV brand is a thorn in GM’s side at the moment. Following record high gas prices last summer, sales of the pricey SUVs have stalled, resulting in the need to get rid of the low-volume brand. However, thus far GM has had little luck getting buyers excited. While GM has reportedly wooed potential buyers in India and China, there has been little traction in making a deal. One Cleveland Chevrolet dealer hates to see the brand leave the GM fold as BZ Results did, but hopes it stimulate sales for Chevy SUV models instead.
Jeep
Jeep conjures images of rugged off-roading, but many American buyers have lost interest in theses tough sport utilities similarly to Hummer. Chrysler had reportedly been shopping for a buyer for Jeep, but unfortunately, that opportunity may be gone as Chrysler has now attracted Fiat as a shareholder. While that’s good for Chrysler overall, that partnership also has scared away potential buyers, especially India’s Mahindra who reportedly was interested. At Chrysler Middle Tennessee, the rumors of Jeep’s sale has not been well received, as many expect the value of the Jeep brand to prevent it from leaving Chrysler’s umbrella.
Saab
General Motors has placed Saab in “strategic review,” which is basically a nice way to say they’re interested in selling the brand as quickly as possible. Saab has always been a low value brand, and in GM’s current financial crisis a low volume brand provides low value. No names of interested parties have surfaced, but GM executives have hinted that they were approached by one interested investor. But don’t be surprised if another Indian company is in the mix of their sale. The Swedish government could also be a contender, although they have denied interest in owning any automaker. The troubled state that Saab is currently in is no surprise to many in the automotive industry according to Boston Used Car dealers, as GM has done little to provide it with the resources it needs to be a compeitive brand in the premium segment.
Saturn
Saturn dealers have been increasingly been irritated by the lack of information GM is providing regarding the fate of the brand. GM has made no secretes about exploring alternatives for Saturn, as sales have recently plummeted, but those alternatives have yet to be disclosed to Saturn Denver and other Saturn dealers. No buyers have been cited as being interested, so the fate of Saturn unfortunately remains a mystery – even to those selling them.
Viper
The Dodge Viper was a popular model following it introduction, and invigorated Dodge’s motorsports involvement. However, the sports car brand is ultra low volume, and Chrysler has little money to invest in a new Viper sports car at the moment to the dismal of Hartford Dodge dealers. Some have speculated that there have been several buyers interested, but at the moment the Viper brand remains small and expendable.
Volvo
Sweden’s other American owned automaker, Volvo, is also up for sale. Volvo remains the last premium foreign brand still retained by Ford, following the sale of Land Rover, Jaguar, and Aston Martin. News of a sale is expected to come very soon, as Volvo remains a respected marquee globally and is known for safety technology and innovation. The sale is seen as disappointing by New Hampshire Volvo dealers, who say the brand has so much value for its innovations and fresh new models. If a Chinese automaker purchases the brand, they will have an instant dealer network in the lucrative North American market, so it seems a viable option, although no investor has come forward.
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