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Just saw this on the newswire here at the office
DJ Fuji Heavy, Saab To Jointly Develop Sports Car - Nikkei --
TOKYO (Nikkei)--Fuji Heavy Industries Ltd. (J.FJH or 7270) will join forces
with Saab Automobile AB in jointly developing and marketing a small sports car,
The Nihon Keizai Shimbun reported in its Saturday morning edition.
The two General Motors Corp. (GM) group companies aim to roll out the new car
worldwide by 2005 and will sell it through each other's dealerships in Japan and
the U.S.
Their move is part of GM's global strategy to step up the mutual use of
management resources by group companies in developing mostly subcompact cars.
The new vehicle will be based on the platform of a Fuji Heavy model and is
expected to be a 1.5- to 2-liter car, featuring Fuji's horizontally opposed
engine and four-wheel-drive technology.
The model will be produced at each company's facilities and carry separate
brand names. Fuji Heavy and Saab will market it through their networks,
targeting combined annual sales at more than 100,000 units. The joint effort is
expected to save nearly Y100 billion in development costs.
Within the year, five or so of Fuji Heavy's 550 domestic dealerships will
begin marketing all five Saab models, with more gradually following suit. GM has
renewed a contract with Yanase & Co., which handles the marketing of Saab models
in Japan, and expects to sell 1,500 Saabs a year, 50% more than current levels.
Starting next year, Fuji Heavy's Impreza sports car, which has a 1.5- to
2.5-liter engine, will be supplied to Saab in North America on an OEM basis.
Some 5,000 units a year will be provided.
Among other GM group companies, Suzuki Motor Corp. (J.SUZ OR 7269) and Fiat
SpA of Italy have decided to jointly develop a sport utility vehicle for the
European market. The SUV is slated for release in the second half of 2005.
The global realignment of the auto industry was triggered by the creation of
DaimlerChrysler AG (DCX) in the late 1990s, prompting GM to establish or expand
capital ties with a number of automakers, including Suzuki, Fuji Heavy, Isuzu
Motors Ltd. (J.IZM or 7202), Saab, Fiat and South Korea's Daewoo Motor Co.
(Q.DMS). The U.S. auto giant is the leading shareholder of Fuji Heavy, with a
20% stake, and wholly owns Saab.
But many GM group companies, including Fiat, Saab and Isuzu, are struggling,
making it difficult for GM to create synergies from these ties.
Meanwhile, Toyota Motor Corp. (TM or 7203) has increased its share of the
overall U.S. auto market to more than 10%, while Honda Motor Co. (HMC OR 7267)
has grabbed a 10% share in the U.S. passenger car market.
GM and its group companies have cooperated in R&D and parts procurement in the
past, but aim to take the cooperation a step further to joint development,
production and marketing. These moves are expected to help the GM group improve
competitiveness and increase its share in the global market.
(END) Dow Jones Newswires
04-11-03 1314ET- - 01 14 PM EDT 04-11-03
posted by 198.240.13...
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