Saab's Choice: Become Russian Or Chinese

Bertel Schmitt
by Bertel Schmitt

Saab will either be owned by Russians or Chinese. That’s the way it looks today. Which is no guarantee that it will look the same on Monday.

Yesterday, GM and the Swedish Government gave their nods to a very tentative deal that would allow Vladimir A. Antonov to invest 30 million euros in Spyker in return for a 29.9 percent share. This deal was immediately hailed as “the first good news” at Saabsunited. But the deal is far from done and fraught with nasty details.

GM spokesman James Cain told the New York Times that the matter is “contingent on Saab meeting various commitments.” According to Cain, “Saab has homework they have to do with other parties to create the conditions under which we can move forward.” In a statement, GM demands “certain specific actions to be taken by Saab which have not yet been completed, as well as certain formal consents, approvals and waivers which Saab has not yet obtained.”

Uh-oh. That homework might be demanding. Instead of consents, approvals and waivers, Spyker produced other suitors.

A source told Reuters that Saab is in talks with Chinese automakers Great Wall Motor , China Youngman, and Jiangsu Yueda over a potential investment deal. “The negotiations are very far advanced and should produce results over the weekend,” the source said.

At today’s quarterly (negative) results meeting, Spyker confirmed that they “have opened up alternative routes to fund the company mid- and short-term including but not limited to discussions with Chinese car manufacturers, the discussions with some of which had already been ongoing for several months. We are hopeful that these discussions will result in a solution very shortly so we can resume production.”

It is unclear whether the three Chinese companies are acting jointly or separately. Great Wall has been very active in its quest to enter the European market. Having a European brand with existing certifications and dealer networks would smooth a Chinese entry into Europe immensely.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • SCE to AUX SCE to AUX on Apr 30, 2011

    I don't believe it's going to happen. This will be a business decision, not an emotional choice. There's a reason Saab is being passed around like a cheap date, and it's not because it's profitable.

    • See 2 previous
    • Fred diesel Fred diesel on May 01, 2011

      @ExPatBrit So I take it youve never been in or driven a Saab two-stroke or anything more recent? Beauty is in the eye of the beerholder. And Id bet the Russians are kicking themselves for letting the Chinese get Saabs tooling.

  • Daniel Daniel on May 02, 2011

    Why doesn't Tata Motors make a move on this one?

  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.
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