Breaking: Saab Officially For Sale

14020 Views 140 Replies 86 Participants Last post by Gerard, Dec 10, 2008

nsap

Discussion Starter · Dec 2, 2008

Breaking: Saab Officially For Sale
The division sell-off under way at GM....
www.gminsidenews.com
December 2, 2008
By: Nsap

Rumors have been surfacing lately that General Motors, a company in dire need of losing brands and gaining capital, was pondering the sale of their Saab division. GM purchased their current stake in the Saab brand back in 1997 and since the purchase little has been done with the Swedish car maker. Now that GM is getting ready to sell brands in order to downsize, it appears that Saab is going to be the next to possibly go. GMI was told earlier this morning that GM is now officially pursuing the sale of Saab.

We were told a few days ago by sources close to the board of directors that GM had decided to place Saab “under review” of possible sale. Now, just days later, it sounds like the board has decided that selling off the division would be the best move for them at the current time. GM has not officially made any public statements regarding the sale of Saab.

Our sources have said that if and when a sale of the Saab division occurs, it would include the Trollhattan, Sweden assembly plant that currently builds the Saab 9-3 and Cadillac BLS (a European-only model). Although details such as this could change depending on the situation, GM does not intend on selling off Saab’s engineering side, which has been responsible for several safety advancements and turbocharged engine development for all of GM.

In regards to the possible selling of other divisions; GMI has not heard anything new. At the moment however, Saab (and of course Hummer) are the only two divisions up for sale. The Hummer sale is intended to happen, however the companies looking to purchase it are awaiting the results of GM's bid for federal loans from the U.S. government and the outcome of the credit crunch. Stay tuned to GMI for the latest…there is a lot of news coming out right now.

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1 - 20 of 141 Posts

genjy

· #2 · Dec 2, 2008

Guess GM can't afford to maintain a brand that requires unique, distinctive cars.

RamJet502

· #3 · Dec 2, 2008

Maybe there won't be any buyers out there just like with Hummer.

nsap

Discussion Starter · #4 · Dec 2, 2008

RamJet502 said:
Maybe there won't be any buyers out there just like with Hummer.

Hummer has four buyers that are still interested. They are awaiting to see if GM gets federal loans before they complete a transaction.

Perian

· #5 · Dec 2, 2008

WSJ: "GM will also say it is considering consolidating or selling at least one brand, most likely Saab, these people said. GM has also talked with Chinese auto maker Shanghai Automotive Industry Corp., its partner in China, about the sale of at least a portion of Buick, they said."

Also - WSJ reporting that Saab was put up for sale in 1Q08, but there were no takers.

RamJet502

· #6 · Dec 2, 2008

nsap said:
Hummer has four buyers that are still interested. They are awaiting to see if GM gets federal loans before they complete a transaction.

Do we know who the four potential buyers are?

American_Muscle

· #7 · Dec 2, 2008

HA, why just yesterday when i saw the news of Volvo being for sale i had posted a question wondering...guess now we know. Go me! haha

nsap

Discussion Starter · #8 · Dec 2, 2008

RamJet502 said:
Do we know who the four potential buyers are?

I've only heard one; that being Tata.

zete

· #9 · Dec 2, 2008

Saab is such a small, niche player that I can't see it going for much money. Especially not today with the way the economy is.

And with Volvo on the block you have to wonder if GM and Ford figure a single buyer might pick them both up.

nadepalma

· #10 · Dec 2, 2008

This is sad. I love Saab and would have loved to see it stay in the GM fold.

But numbers are numbers and they don't lie. If this is what it takes for GM to survive, then so be it...

nsap said:
Although details such as this could change depending on the situation, GM does not intend on selling off Saab’s engineering side, which has been responsible for several safety advancements and turbocharged engine development for all of GM.

How would they accomplish this? Wouldn't any sale have to include the engineers, etc? Would "Saab Engineering" become something akin to "Porsche Engineering" or "Lotus Engineering" in this regard?

stevecmh

· #11 · Dec 2, 2008

no real surprise here.
to bad though i thought the cars were nice looking

nsap

Discussion Starter · #12 · Dec 2, 2008

nadepalma said:
How would they accomplish this? Wouldn't any sale have to include the engineers, etc? Would "Saab Engineering" become something akin to "Porsche Engineering" or "Lotus Engineering" in this regard?

Saab's engineering has become quite intertwined with GM's in recent years, so it would likely be more difficult to separate them than to keep things as is.

61BelAir

· #13 · Dec 2, 2008

I would assume that the Chinese might be part of the other interested parties. This would help them get into the NA market, which you know they are just waiting for the right opportunity.

Ed Arcuri

· #14 · Dec 2, 2008

I have long thought that Saab could work well at Cadillac stores and needed only a bit of variation from the other mid-size cars in GM's portfolio to provide an entry-luxury vehicle at those dealerships. However, it now seems that GM is intent on moving Cadillac to smaller cars and will be squeezing Saab as that approach has squeezed Buick. Had Cadillac concentrated on the higher end, it would have allowed room on the pricing pyramid for Saab.
Perhaps this will be a good move as Saab is substantially less integrated than some of the domestic nameplates. It might prove a good way to pare off Saturn, as well. Establish Saturn as a separate, wholly owned corporation with its own plant or plants, as before. Saturn would be a more attractive takeover target for a foreign manufacturer looking for some domestic manufacturing capability, a marque identified with the US market, and a corps of good dealers.
If GM drops Pontiac, then they can attempt to make Buick all things to all people. The sales per dealer will drop off a cliff and, eventually, Buick will fold.
If GM can make money dropping automobile brands thus sabotaging potential customer's confidence; then I say, Close 'em all and get rich!
Cheers,
Ed

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Quickening

· #15 · Dec 2, 2008 (Edited)

Guess my days with GM are numbered. Sad times. But my loyalty is with Saab.

Hopefully they get picked up by someone that actually has the guts to produce Saabs concepts.

Kill Pontiac. Kill GMC. Merge Buick/Opel. O and kill Saturn. So we are left with Chevy, Buick, Cadillac. How boring.

sepi

· #16 · Dec 2, 2008

Good move - though in hindsight, it would have been better for GM had it not whored Saab with GMC's and Subarus in the past. Maybe GM can get $9,995 for Saab and be done with the cement shoes.

BrickTamland

· #17 · Dec 2, 2008

Figured it would happen pretty soon.

Ed Arcuri

· #18 · Dec 2, 2008

How does one sell a "portion of Buick?" Buick is not a separate company. Might they mean that they intend to sell the Chinese government a bigger stake in the Chinese Buick operation? I'm not sure of the business case, but as a capitulation to a protection racket, it's a blue ribbon effort.
Cheers,
Ed

Chaz_23

· #19 · Dec 2, 2008

It's about time. GM ruined Saab and didn't get anything out of it.
But what are they going to sell? The name, and a plant in Germany? Or do they still have plants in Sweden?

As with Hummer, no one's going to buy this.

PocoToro

· #20 · Dec 2, 2008

zete said:
Saab is such a small, niche player that I can't see it going for much money. Especially not today with the way the economy is.

And with Volvo on the block you have to wonder if GM and Ford figure a single buyer might pick them both up.

Can You say........."Here you go Sweden, if you want a car industry, you do it"

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