GM's Saab Story Heading for the Final Chapter?
August 1st, 2007 9:15 AM Share
While GM is showing an overall profit on its worldwide operations, Saab continues to be a huge money pit. The Local reports that last year Saab Automobile lost 2.9b kronor ($428m) while GM poured 3.8b kronor ($560m) into the company. "We didn't make a profit in 2006 and won't make one in 2007 either," said Saab CEO Jan-Åke Jonsson, adding he believed the company would turn a profit by 2010. While that kind of honesty is [s]unheard of[/s] refreshing coming from someone within GM, you have to wonder how much longer GM will pour money into the operation before they finally admit they have a Swedish Jaguar on their hands and hold a Ford-style fire sale, or merge it with Opel.
Published August 1st, 2007 9:11 AM
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I just saw a SAAB 9-3 Aero of the current iteration in the middle of the road, smoke pouring out of the engine, and the puzzled owner staring at a pool of coolant on the ground.
Saab is already merged with Opel...Basically.
I've been saying for a long time that a Swedish investor group should buy both Saab and Volvo and turn them into national champions building interesting cars with a uniquely Scandinavian viewpoint. Ikea sells like crazy worldwide and so does Nokia. Why not the Swedish Motor Company building and selling a compelling line of Volvos and Saabs? GM has made a hatched job of Saab. Granted Saab already had it's troubles, but the years with GM have only made matters worse. Ford's stewardship of Volvo has been outstanding by comparison. Even so, both companies would be better off if free of their current masters.
I like the idea of a Swedish investor group buying both Saab and Volvo. It would be sort of like the Citroen-Peugeot merger. Saab and Volvo could share platforms and parts but develop different personalities with Saab being more aerodynamic and futuristic, sort of like Citroen, and Volvo being more traditional like Peugeot.