THE FUTURE LOOKS bleak for Swedish carmaker Saab after Koenigsegg and its Chinese partner BAIC pulled out of negotiations with GM earlier this week.
With a $500 million loss in 2008 and a similar amount expected to be lost this year, Saab will be the major topic at a regular meeting next Tuesday for parent company GM’s top brass.
For now, the most likely outcome for Saab is closure.
With no other strong bidders in the running, according to a Reuters source, GM would need to continue funding Saab while it searches for a new buyer - a process which could extend well into next year.
While GM recently decided to keep fellow European brand Opel, it is not likely to make the same decision with Saab.
General Motors boss Fritz Henderson described Opel recently as “too important” to the carmaker’s global strategy - the same cannot be said for Saab.
In September, GM announced it would close down its Saturn brand and dealerships after US company Penske Automotive pulled out of a deal to buy the brand.
The Swedish Government is unlikely to takeover the ailing carmaker. Although it is willing to provide up to 25 billion crowns in guarantees and emergency loans, Sweden has consistently said it will not take a stake in either of the country’s carmakers (the other being Volvo).
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It would be a shame if it were to close. we are loosing too many great marques.
if they were a more affordable car maybe they would not be in this predicament,they are way overpriced & overated like a lot of other brands.
Are you kidding Auto? Overpriced! you can buy a 9-3 linear 2.0t sedan with 147kw power for under 40k drive-away, infact a friend of mind recently bought a turbo-diesel 9-3 linear for 37k drive-away. When you compare that car to say a std Aussie Commo Omega which retails for 40K, the 9-3 come with just about every bell and whistle, whereas the commo comes with next to nothing. Other than size (not even performance as the Saab out sprints it and is better on fuel) what hasnt the 9-3 got going for it? it certainly IS NOT overpriced. If anything cars like our falcadores are WAY overpriced!
Very true Mark, Saab’s are fantastic value, people just don’t know it…. Half the problem with these things seems to be supply related, plus the fact that Saab has effectively one model, even tho there are stacks of versions. As a brand if Saab had a small car, maybe an SUV and that new horn looking 9-5 it would be seen as a proper line-up. At the moment they are pretty much the 9-3 car company…
price is not the problem here, it’s a lack of marketing and the fact that design was thrown out the window as soon as GM took over.
They are great value for money cars but the class and sophistication that was distinctly saab, was lost since GM started running it intot he ground, a shame really.
i didn’t say they were the only ones over priced, anyway if they are so good why dont they sell more of them?
Saab, does not need to be more affordable - there are already more than enough budget brands around. Maybe Holden should look after Saab (reputation for doing good things on a budget), like they are doing with Daewoo. Maybe a Commodore rebadged/ reworked as a Saab for the world market ect..