#Alliances

It’s not that the cross-sharing of technologies between Renault-Nissan has been a well-kept secret. However, it is good to hear that loose alliances between unlikely partners work, while a marriages made in the automotive compatibility heaven (we are looking at you, Volkswagen & Suzuki) don’t even get to the consummation part.

Renault-Nissan announced today in Detroit that its Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014.

Read this sentence carefully.

Lotus is one of those brands that every auto enthusiast loved to lionize, despite (or possibly because of) the fact that it hasn’t made a profit for its owner, Proton, in 15 years. But now things are changing. Lotus itself is in the midst of a makeover, seeking to transition from niche sports- and track-car company to a Ferrari and Porsche-rivaling aspirational brand. Meanwhile, back in Malaysia, its owner, Proton, is undergoing a few changes itself. Having been founded as a state-backed business, Proton may soon be privatized, reports Bloomberg. And as a result, Protons private investors could push for a quick divestment of the firm’s Lotus holdings. One such investor, Gan Eng Peng of HwangDBS Investment Management, tells Bloomberg

It will make sense for them to sell it. Proton and Lotus are not a good fit. They are in different market segments, both in terms of geography and product.

Fuelled by Nissan’s decision to move the HQ of it’s Infiniti brand to Hong Kong, rumors of an impending Chinese production of the upscale marque would not end. In November, while not denying the story out of hand, spokespeople in Yokohama indicated that announcements of Chinese production of Nissan’s luxury brand were premature. Today, China Daily has an interesting twist on the story: A trucks-for-luxury cars swap.

This is both an interesting and a strange article the The Nikkei [sub] has on GM. First, the interesting part.

Yesterday, first media day at the Tokyo Motor Show, the press corps was chased from press conference to press conference in 15 minute intervals. Today, the Fourth Estate was looking forward to lazy strolls through the halls, snapping pictures of attractive ladies cars, when an urgent email, followed by urgent telephone calls disturbed the peace: Come to the Grand Pacific Le Daiba at 4pm, when Toyota and BMW will hold a joint press conference. The local gang knows: When these short notice calls come, drop everything and show up, it will be interesting.

Toyota AND BMW? Let’s go!

Suzuki has made good on its repeated threats to sue Volkswagen. The Japanese carmaker initiated arbitration procedures. This according to Reuters, The Nikkei [sub], and sundry other media that has been covering the domestic dispute between the couple. Suzuki originally had given Volkswagen some time to consider and was planning for a repurchase of the 19.9 percent Suzuki shares held by Volkswagen. After Volkswagen CEO Martin Winterkorn denied the offer out of hand, and implicitly said that he was waiting for Osamu Suzuki to be replaced by younger blood, Suzuki said “mo takusan desu” (enough is enough) and filed papers with the International Chamber of Commerce International Court of Arbitration in London. Don’t expect a quick end of the drama.

The last attempt at saving Saab failed when GM said it would not supply or license technology to Saab if it were 100% owned by PangDa and Youngman, scuttling the Chinese firms’ bid for outright control of the company. Now the two firms have sent a revised proposal to The General in hopes that they can provide safeguards for intellectual property, allowing them to purchase Saab without losing the link to GM. After all, both the 9-3 and 9-5 rely on GM technology and parts, while the 9-4X is wholly supplied by GM. Rachel Pang of PangDa tells TTELA.se

We have not discussed any changes with regard to ownership structure. We are concentrated on the GM issue… It’s about more commercial terms. We want to meet them and have asked for a meeting. First we must give them time to review our proposal. We are waiting for GM’s response and then we will of course respect it.

Of course, our understanding is that “the GM issue” is the same as the ownership structure issue… and keep in mind, PangDa and Youngman are looking for a meeting, not an agreement from GM. Which means this could drag on a while… and wouldn’t you know it, it’s time for Saab to pay salaries again.

That interview with Volkswagen CEO Martin Winterkorn is a treasure-trove of information. It also gives an insight into Volkswagen’s strategy with rambunctious Suzuki: It will be a Sitzkrieg. Volkswagen seems to be intent on waiting things out until Osamu Suzuki passes away.

Winterkorn will be at the Tokyo Motor Show. Someone with a perverse bent made Volkswagen (booths EP06 through EP10) close neighbors of Suzuki (EP12). Only Mitsubishi (EP11) keeps the brawling couple at distance. But Winterkorn doesn’t have Osamu Suzuki on his dance card:

“A meeting is not planned. Should we run into each other, then we can talk about everything. There is one exception: Our 19.9 percent share is not for sale.”

Asked how Winterkorn intends to settle the matter, he answers:

Attempts to ratchet-down the rhetoric in the Suzuki/Volkswagen row have failed. Suzuki launched a heavy missile in the direction of Wolfsburg. Suzuki will take the case to court, The Nikkei [sub] heard before a scheduled press conference in Tokyo. But fear not, Volkswagen gets a whole year to make up its mind.

It’s becoming increasingly clear as time goes on that the Chrysler five year plan promulgated in November 2009 was merely a stopgap strategy aimed at stabilizing the then-recently-acquired firm while CEO Sergio Marchionne plotted a strategic course globally. Now, with news that Alfa is going to be re-launched with the US as its major focus ( possibly replacing Dodge), we’re getting a better and better picture of where the Sergio Show is headed with his transatlantic alliance. In an interview with Automotive News Europe [sub], Marchionne gives the latest snapshot

In his vision, Alfa Romeo and Jeep both have the DNA and the rich history capable to make them the alliance’s two global brands. “We need to continue to globalize Jeep and Alfa, so the development of architectures and engines that are designed to support these two brands is crucial, and everything else becomes almost secondary,” he said.

Chrysler clearly won’t be a global brand, as its products are rebadged as Lancias in Italy. Fiat will offer full lineups in Europe and South America, but only the Fiat 500 will be a truly global brand, in a role Marchionne compares to BMW’s MINI. Dodge doesn’t even rate a mention in this interview, which can only be interpreted as more evidence that it will be lucky to survive at all.

Divorce is a complicated matter. Sometimes, it takes a while for all involved that it’s over. Apparently, they are in that phase. If the German magazine Wirtschaftswoche is correctly informed, then VW CEO Martin Winterkorn wants to bring the matter to a conclusion until the end of this year – one way or the other. Says Wirtschaftswoche:

The admonitions by Lower Saxony’s premier to wash dirty laundry in the privacy of your office appear to bear fruit – at least for the time being. Volkswagen has agreed to a cease-fire in the war of words with Suzuki.

If the war of words and press releases between Suzuki and Volkswagen escalates into a legal duel, then the showdown will not happen in a court of law. Germany’s Handelsblatt learned that the “secret cooperation agreement between Volkswagen and Suzuki specifies arbitration in case of differences.”

Commonly, arbitration is binding in these cases. It may not even come to that. David McAllister, Premier of Volkswagen’s home state Lower Saxony, which holds 20 percent of Volkswagen, intervened over the weekend.

Divorces usually get messy when there is money involved. The Suzuki vs. Volkswagen case is no exception. There are irreconcilable differences. Suzuki wants out, Volkswagen would like to swallow Suzuki whole. The rest are accusations and counter-accusations that are as interesting as divorce papers. In the last days, the Kabuki dace went into a new phase as both sides ratchet up their rhetoric.