2010 Saab 9-5
It seems that the “wind down” of Saab will have to be postponed. GM announced on Tuesday that the sale of Saab to Spyker automotive has been completed, and going forward, Spyker will be responsible for all of Saab’s operations. This is good news to the Saab faithful and employees around the world. Although the automaker is a niche player, it will help fund Spyker’s other projects, namely its supercars. No news about who financed the deal, although it was rumored that the Swedish government had its hands in the deal, promising money to Spyker to give it operating capital to continue running Saab.
by John Suit
Source: GM
There has been a lot of speculation lately as to the fate of troubled automaker Saab. We reported previously that GM was going to wind Saab’s operations down at the end of 2009. Then talk began of Swedish company Spyker trying to buy Saab. Spyker previously put a bid in to buy them, but negotiations with GM fell through, leaving GM to announce the end of its Swedish subsidiary. Although details in the press release are slim, apparently Spyker will create a new company called Saab Spyker Automobiles, which will build Saab automobiles. The entire deal is still hinging on government and court approvals, on both sides of the Atlantic, but shows great promise, which is great news for Saab fans and employees.
by John Suit
Source: General Motors
It was announced this morning that GM will begin “winding down” operations of their subsidiary, Saab. GM has been trying all year to find a buyer for Saab, but has been unable to complete a sale, after last month’s failure to sell to Swedish supercar manufacturer Koenigsegg and this month’s failure to sell to Dutch automaker Spyker Cars. GM is following through on an earlier statement where they announced that if they couldn’t find a buyer by year’s end, they’d wind down its operations.
In the press release made this morning, GM also stated that Saab’s debts would be paid, as this is not a bankruptcy or forced liquidation. They will also be honoring warranties and providing spare parts to dealers. It’s always a sad day when a manufacturer with such a long history has its doors closed for good.
Saab only sold 23,186 cars in North America in 2008, a decrease of about 34% from 2007, when the Swedish automaker sold 35,175 cars.
by John Suit
Source: General Motors
It was announced Tuesday that Koenigsegg, a Swedish supercar manufacturer, has dropped out of a deal to purchase Saab from GM. Contrary to previous press releases from GM stating the “winding down” of Saab if a buyer could not be found, they are now saying that they, “… will take the next several days to assess the situation and will advise on the next steps next week.” Expect more news posted here next week as GM figures out what to do with its quirky subsidiary.
My prediction is that GM will sell off Saab to another buyer. There were other companies interested in Saab before Koenigsegg, and now they can come to the forefront. Realistically, GM doesn’t need Saab, so they should sell it off, or shut it down. This would get rid of unnecessary overhead and costs on GM’s part. While some reports have declared an end to the automotive recession, I believe we are far from it. The downward slide in sales may have slowed or stopped by this point, but I think it will be a long time before the American automotive market will be able to support sales of 13-17 million new vehicles per year.
by John Suit
Sources: Automotive News, GM
Published on
October 28, 2009 in
General and Industry Update.
Tags: automotive, cars, Chrysler, Fiat, Ford, GM, Hummer, Industry, Pontiac, Saab, Saturn, update.
Since the early 1900s, vehicle manufacturers have been buying and selling each other, trying to grow their combined business. Some of these ploys work (GM buying Cadillac in 1909) while others fizzle out (GM buying Hummer in 1998). In today’s uncertain automotive times, the Detroit 3 are trying to streamline their companies, to cut operating costs and slough off under performing brands. In order to answer the question of whose product you’re really buying when you buy a car, truck or SUV in America, I will go into a little detail as to which companies are on the block, which have already been sold, and which are dying (or already deceased).
Continue reading ‘Industry Update: Company Ownership’
