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Bajaj ULC-Renault Alliance Under Threat
Speaking during yesterday's launch of the Fluence sedan, the French carmaker's India chief Marc Nassif indicated that Bajaj's ULC would have to match its DNA if it has to continue its association with the project. Mr Nassif said: “If it (ULC) really matches our DNA, we will go ahead. If the quality of development matches with the promises we see, we will go ahead. Renault has not seen the product yet and will be able to decide on the future course of action only after reviewing it. We will do something different, we will have our opportunities. We do not have a joint venture, we have not made any investments."
His statement clearly indicates Renault will not put its hard earned reputation at stake by associating itself with a sub standard product. The fact that he emphasised on his company not making any investments in the project means it does not have any risk even if it walks out of the project. The Bajaj ULC project's viability is at stake considering the attitude of Renault. The carmaker had earlier remarked that the product must fulfil all the requirements of a car while Bajaj had described the ULC as only a four-wheeler and not a car. Such conflicting opinions are unlikely to result in a mutually agreeable product.
The Bajaj ULC which was envisioned as a viable alternative for the Tata Nano had created a lot of buzz in 2009. It got more value when the Bajaj Renault alliance was announced by Renault-Nissan CEO Carlos Ghosn. However, the conflicts of opinion between that alliance partners has not helped in speeding up the development of the new car from Bajaj.
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