Rivals under same roof

By ALASTAIR SLOANE

Two of Europe's most innovative carmakers will trade out of new premises near Auckland's Newmarket from next year.

Citroen and Saab will share a new showroom on Great South Rd, on what has been Saab's site next to Schofields for the past few years.

The deal is under wraps and executives of both companies won't confirm the new arrangement. But Saab is understood to have opposed it.

Saab's operation in New Zealand is managed by Saab Australia, a subsidiary of the GM-owned Swedish company which recently reduced the price of its vehicles in an attempt to grab a bigger chunk of the executive market.

"The Australians weren't happy," said an industry insider. "Saab was about to get the showroom it had wanted for so long in Auckland when the deal for Citroen to share the premises was put in place."

Citroen has also been stuck in the suburbs without a shop front but, unlike Saab, it has its own administrative staff.

The insider said Citroen was looking forward to the move. However, Citroen New Zealand general manager Andrew Butchart refused to comment.

The move would bring together two carmakers who have a strong following in Europe but who largely lag behind European rivals in New Zealand.

Both, however, have the model range to attract more customers. Citroen is about to import the Picasso people-mover in numbers along with the C5 replacement for the Xantia.

The Picasso has been a best seller in Europe and the C5, with its new adaptive suspension, is seen as taking Citroen back to its much-loved and quirky roots.

Saab signaled its intention to challenge established Europeans like Audi and BMW when it reduced prices by an average 7.4 per cent across its range.

"We cannot expect to be a genuine force in New Zealand unless we take this affirmative action," said its Melbourne-based managing director Tony Jennett, until recently an executive with BMW Australia.

"New Zealand is an important market for Saab," he said. "It is also a hugely competitive market and for Saab to be taken seriously we need to improve our position."