VW to buy Zastava?

[coolraoul]

VW is currently thinking about buying Zastava, according to the Handelsblatt (well-known economical German newspaper). Today, 99,99% of Zastava belongs to the Serbian State. In the 80's were they producing 200.000 cars, now it has fallen to 25,000... The factory is old and should be renewed if VW buys Zastava.

GM doesn't want to buy them, but let them produce the Astra for them. Fiat has an agreement about the production of the Punto, too.

Ford, Tata and the Chinese FAW are interested in Zastava, too.

Zastava could open the Russian market to VW, if the Serbian State enlarges its free-market agreement with Russia to cars.



Seems the Dacia-Renault thing gave ideas to others...

 

[PanterroR]

 

[bmer]

Now I want to see a similar battle between BMW and VW like in the Rolls Royce-Bentley case. BMW should buy the rights to the Yugo name.

On a more serious note, soon we will probably see Renault making Ladas and VW making Zastavas/Yugos.

 

[coolraoul]

I tend to disagree. Look at Dacia. VW has nothing that could be seen as a low-cost brand, as Skoda and Seat have been marketed more as Renault/Peugeot competitors in slightly less expensive, and with the Superb it's obvious it's not marketed as low-cost.

Remember some years ago Skoda and Seat made truly awful cars... And Dacia too, a more than 20-years old Renault with crappy quality...

VW is mastering the art of changing the brand image.

I think Dacia, and now Tata, are showing a big trend. VW wants to jump-in and the Lupo will be too expensive for that.

 

[PanterroR]

Sure, but let me just tell you that Skoda/seat is a Maybach (oh, sorry, that thing will fade out soon ), or a RR compared to Zastava and acquiring it takes much more than it took for Skoda or Seat.

Skoda and especially Seat, were in much better position when VW overtook them and Zastava is something... Well, you'd need to live in this area to understand.

There's much more work to do in Zastava than it needed in Skoda/Seat... Question is, is it gonna pay well? And that's the most important thing, making money, right?

Eni is in this business and can explain it much better than i can, but judging by his Thanks to my LMFAO comment...

 

[coolraoul]

That is very well possible.
For us in Western-Europe, Lada, Zastava, Dacia, Skoda are/were pretty the same piece of crap... Only Zil is better (because it does not finish in -a? )... The Lada Niva is the only one who had some sucess here.

And it would be quite as easy to creat a brand from scratch, furthermore Zastava seems not to have free access to the Russian market and only achieves miserable sells...So, it might not be that clever, I don't know... Renault managed to do an outstanding job with Dacia, that said.

 

[PanterroR]

Also, Renault made pretty "useful" cars of Dacia, some pick-ups and such. And being cheap, those things actually sell... A lot.

VW cannot make that from Zastava, at least not immediately... It would need the whole new platform(s) and so on... Are they that ready/dumb? We'll see. But IMO, they don't need that. They're already selling "People's Cars".

Also, when you mention Russia and Serbia, there's a big political connection between them too...

Russians would do whatever it takes to help Serbia...

 

[coolraoul]

Thanks for the explanations!

Maybe you should talk with Mr Winterkorn too... ?

 

[PanterroR]

Although i don't think i've explained anything...YW!

 

[bmer]

Renault managed to do an outstanding job with Dacia, that said.

Let's see what they can do with Lada.

Renault takes stake in Russia's Avtovaz

 

[PanterroR]

Thanks, Mikael.

That creates even less space for VW/Zastava in Russian market...

 

[coolraoul]

Yes I knew about this Avtovaz/Lada deal with Renault.
Does it make any sense for them to have both Dacia and Avtovaz?

 

[bmer]

Thanks, Mikael.

That creates even less space for VW/Zastava in Russian market...

Your welcome, my friend!

Yup, surely will be hard for VW to compete against a famous traditional brand like Lada in Russia.

Does it make any sense for them to have both Dacia and Avtovaz?

I think they're targeting the Eastern European countries and some selected Western European markets with the Dacia while Lada will be their product for the Russian market.

 

[Tarek]

Zastava? does it even still exist?...wow i didn't know that

 

[phaeton]

I read today that is was only the plant VW were interested in nothing else

 

[EnI]

Thomson Financial News

Fiat signs agreement with Serb govt to acquire Zastava's Kragujevac plant

04.30.08, 8:46 AM ET


MILAN (Thomson Financial) - Fiat SpA said its Fiat Group Automobiles (FGA) unit has signed a memorandum of understanding with the Serb ministry of economic and regional development for the acquisition of Zastava's Kragujevac plant. On the basis of the memorandum, and with the support of economy minister Mladan Dinkic, working working groups will be set up to examine in greater detail different aspects of the plan, it said.
'This initiative represents a further step forward in the strategy of FGA aimed at supporting its expectations in terms of growth and volumes,' said Fiat (nyse: FIA - news - people ) CEO Sergio Marchionne in a statement.
Recent reports have suggested Fiat will invest 200 million euros to 300 million euros in Zastava, although no financial details were given in Wednesday's statement.
If the working groups decide the project is feasible then the two parties will sign a definitive agreement in the next months, Fiat said.
Dinkic is a minister in the outgoing Serb government. Elections are due in Serbia in May and Dinkic has said a Fiat acquisition of Zastava would have to be approved by the next government.
Marchionne said the deal demonstrates Fiat's confidence in Serbia, its industry, and managerial and worker skills.
Fiat first signed an alliance deal with Zastava 54 years ago and, at present, the Kragujevac plant produces the Fiat Punto model under contract.
nigel.tutt@thomsonreuters.com