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  • Blake Noble
    Blake Noble

    Could BMW be Bidding for Saab?

    G. Noble

    Editor/Reporter

    CheersandGears.com

    Tuesday, 21st February, 2011

    No doubt about it, the drama surrounding the bankruptcy of Saab almost seems scripted enough to be fit for daytime television at times. The latest news to come out of Trollhättan is no exception, now that the Swedish automaker is looking for a new suitor.

    According to a recent post on Saabs United, Saab's bankruptcy administrators have 6 to 7 bidders interested in purchasing the company and that each bidder is serious about building new Saabs. Among Saab's new suitors in particular is a European automaker which, according to Saabs United's rather patulous sources, "is German and located in Munich." There is also information that indicates that this particular company has the desire to build Saabs and their own vehicles on shared platforms.

    Interestingly, Saabs United also notes that the company that wins the Saab deal won't be the highest bidder, but the company that has the best plan for getting Saab back in business.

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    I believe it would be a dream scenario for SAAB if BMW bought them. SAAB could remain FWD and BMW could remain RWD... no exact market overlap.

    That's probably the thinking.

    I wonder how much Jack Link's I'd have to set out to get Herr Sasquatch to drop his two cents into the cup on this one.

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    I personally see what people are thinking of in tying up wih BMW, but in reality, This is a company that should die and just let the assets go to a company that is already successful and can grow more.

    I really do not see any reason for trying to keep this brand alive. The wasted millions it would take to rebuild their image and build out a new dealership, etc. Rather see BMW put it into their own successful Family of products.

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    I personally see what people are thinking of in tying up wih BMW, but in reality, This is a company that should die and just let the assets go to a company that is already successful and can grow more.

    I really do not see any reason for trying to keep this brand alive. The wasted millions it would take to rebuild their image and build out a new dealership, etc. Rather see BMW put it into their own successful Family of products.

    BMW has plenty of spare cash and really needs a brand that would allow it to sell more small to medium-sized front-wheel drive cars without diluting the brand image of Mini or BMW and without over-crowding the BMW portfolio. Saab could be that brand at a fire sale price, provided BMW presents a solid buisness plan.

    Medium-sized cars aren't a good fit for Mini and small front-drive cars are a bad fit for BMW. In fact, I don't think BMW is exactly happy about their decision to make the next 1er a front-wheel drive model, only making the choice light of new fuel economy regs.

    Edited by black-knight
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    I personally see what people are thinking of in tying up wih BMW, but in reality, This is a company that should die and just let the assets go to a company that is already successful and can grow more.

    I really do not see any reason for trying to keep this brand alive. The wasted millions it would take to rebuild their image and build out a new dealership, etc. Rather see BMW put it into their own successful Family of products.

    BMW has plenty of spare cash and really needs a brand that would allow it to sell more small to medium-sized front-wheel drive cars without diluting the brand image of Mini or BMW and without over-crowding the BMW portfolio. Saab could be that brand at a fire sale price, provided BMW presents a solid buisness plan.

    Medium-sized cars aren't a good fit for Mini and small front-drive cars are a bad fit for BMW. In fact, I don't think BMW is exactly happy about their decision to make the next 1er a front-wheel drive model, only making the choice light of new fuel economy regs.

    I see your point yet, why not pull a Scion then and have BMW badge their FWD auto's on a new name and sell it through the BMW or mini dealership. They could easily have built a show floor within a showfloor for this market. No differance than a GMC/Buick Dealership or Toyota/Scion dealership.

    I do not see enough good karma in SAAB to buy it up even at fire sale prices and try to bring it back. I see it as a black hole, but then I coud be wrong. Would not be the first time.

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    I personally see what people are thinking of in tying up wih BMW, but in reality, This is a company that should die and just let the assets go to a company that is already successful and can grow more.

    I really do not see any reason for trying to keep this brand alive. The wasted millions it would take to rebuild their image and build out a new dealership, etc. Rather see BMW put it into their own successful Family of products.

    BMW has plenty of spare cash and really needs a brand that would allow it to sell more small to medium-sized front-wheel drive cars without diluting the brand image of Mini or BMW and without over-crowding the BMW portfolio. Saab could be that brand at a fire sale price, provided BMW presents a solid buisness plan.

    Medium-sized cars aren't a good fit for Mini and small front-drive cars are a bad fit for BMW. In fact, I don't think BMW is exactly happy about their decision to make the next 1er a front-wheel drive model, only making the choice light of new fuel economy regs.

    I see your point yet, why not pull a Scion then and have BMW badge their FWD auto's on a new name and sell it through the BMW or mini dealership. They could easily have built a show floor within a showfloor for this market. No differance than a GMC/Buick Dealership or Toyota/Scion dealership.

    I do not see enough good karma in SAAB to buy it up even at fire sale prices and try to bring it back. I see it as a black hole, but then I coud be wrong. Would not be the first time.

    SAAB is an existing brand with existing dealers and existing customer base...probably much cheaper to pick up an existing brand than try and create one from scratch...and SAAB has manufacturing facilities and people w/ experience in midsize FWD models.

    Edited by Cubical-aka-Moltar
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    Cubical, I see the point in regards to the customer base, manufacturing facilities and peopl with experiance building midsize to small size FWD auto's.

    Yet, will the Unions be willing to give up pay/benefits and scale back the number of employees to make it profitable? Big if here I think.

    Dealers as far as I see on the west coast are all closed and gone. The two that I would drive by in Washington are boarded up, no product to sell, no customers. History, so I do not see any value in the dealer base. I am sure some dealers are still open more as a used car lot, but I again wonder if there is any real value there for BMW to get.

    Like I said I could be wrong here, but I get this gut feeling that this is not a road to success for them.

    Edited by dfelt
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    There would be no union....or at least no contract. The buyer would be purchasing SAAB's assets, not the paper company.

    BMW could buy SaaB with the change in their seat cushions.

    Why should they? How does BMW get to do mass market volumes for something like an Accord/Sonata fighter without damaging the main brand?

    Saab can be used to build a credible FWD sedan in both small and medium sizes. Throw in a small and midsize crossover and you have the makings of an actual full line manufacturer.

    Saab wouldn't and couldn't be a luxury brand anymore, however, they could be "premium" along the lines of how VW is generally perceived.

    BMW buying SAAB for that sort of redevelopment is a clear shot across VW AG's rather large bow.

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    SAAB is an existing brand with existing dealers and existing customer base...probably much cheaper to pick up an existing brand than try and create one from scratch...and SAAB has manufacturing facilities and people w/ experience in midsize FWD models.

    Are there really many dealers left? I don't see any positive value in the brand name.

    Edited by frogger
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    SAAB is an existing brand with existing dealers and existing customer base...probably much cheaper to pick up an existing brand than try and create one from scratch...and SAAB has manufacturing facilities and people w/ experience in midsize FWD models.

    Are there really many dealers left? I don't see any positive value in the brand name.

    Probably most of the dealers closed by now, but they could be reopened. The brand had it's fans....better than creating a new brand from scratch...

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    SAAB is an existing brand with existing dealers and existing customer base...probably much cheaper to pick up an existing brand than try and create one from scratch...and SAAB has manufacturing facilities and people w/ experience in midsize FWD models.

    Are there really many dealers left? I don't see any positive value in the brand name.

    So I called today the only 3 dealers in washington state that still are listed with the SAAB name and they are all dealerships that have Cadillac's and they say they will service SAABs as any place would but the SAAB dealership is dead. So I would have to think that the dealerships across NA is mostly dead at this point.

    In regards to VW being preceived as a Premium car line, I have to disagree. VW is considered a competitor to Chevy. An entery level car line with some Buick Level auto's. I have yet to run into anyone that considers them premium here on the west coast. If they were there would be more dealers than just the couple that are around.

    I see the point being made for a mid level small to Medium FWD auto division with a couple of CUV's so that BMW does not dilute their brand. Assets being what they are, there might be value to be had, but I think it would truly have to be for pennies on the dollar to pick up all the assets and make a go of it.

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    i've felt for a very long time, like since the 9-3 came out in 04 that Saab should have been positioned up against VW...more acurately between say VW and Acura at the time so that the 9-3 was a Passat competitor. or at least something that a VW shopper could move up to without much more dough.

    For Saab to maybe come back the same way.......

    Saab had so much potential......

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    I can't think BMW would be interested in any more than a quarter of the former SAAB dealers. Most of them are sitting in GM Mega Complexes. If the whole idea is to end up building a BMW-SAAB-Mini-Cooper dealer network, BMW isn't going to want to be selling Saabs next to Cadillacs in an old Hummer building.

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    Saw on the News today that the SAAB dealerships here in washington have officially removed all logo's and in the case of the dealer down in Tacoma, they remodeled it into a new Audi Dealership which now sits between a Cadillac dealership and a Mercedes dealership.

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    I think BMW has enlarged the mini line as far as it can go and still be recognizable as a mini. I have to wonder if sales for the countryman and clubman are less than expected.

    Is Saab a good fit for BMW remains to be seen. But let's look at it from the other side. As one person said already this is the best possible scenario for Saab.

    The other bidders consist of companies in newly developed nations China/India/Turkey that want a way into western markets. Building a brand takes a long time and Saab although slightly tarnished still has good brand recognition. There is some precedent that this combination can work, geely/volvo, proton/lotus, tata/jag/land rover etc..

    Still I believe BMW has the best chance to get Saab up and running in the shortest amount of time. BMW has experience reviving a dead brand like mini. I also agree that they hope to compete with VW in the mid-range mainstream market.

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    Crash900s, thank's for joining C&G and welcome.

    I think the one thing you didn't mention, but maybe touched on slightly, is that of all the bidders for Saab that are possible, it is unlikely that any of them have the cash that BMW has to complete the transaction and do the job right.

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    Crash900s, thank's for joining C&G and welcome.

    I think the one thing you didn't mention, but maybe touched on slightly, is that of all the bidders for Saab that are possible, it is unlikely that any of them have the cash that BMW has to complete the transaction and do the job right.

    Both Crash900s comment and yours are the key point to giving SAAB any chance at all. The experiance gained at reviving Mini and the cash is what will allow them to succeed where I see the others only failing.

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    Hmmmm.....a Mini/SAAB/BMW/Roller range actually sort of make sense...

    It does and to me personally it would be a match made in Heaven :)

    Edited by ZL-1
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    I think it would be great if BMW snapped up Saab. I'm betting they could turn them around. It's not like Saab has a bad reputation. BMW would get a known brand that still has loyal followers and buyers. With a little patience and a lot of money, I think Saab could be brought back from the dead. GM bought them and let them wither on the vine for a while before making a half assed attempt to give them some new poduct. They never had a chance under GM ownership.

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    GM bought them and let them wither on the vine for a while before making a half assed attempt to give them some new poduct. They never had a chance under GM ownership.

    Agreed. GM put way too much on its plate when it bought Saab.

    Edited by black-knight
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    BMW would get a known brand that still has loyal followers and buyers.

    All five of them!!

    On paper this seems like a good idea. In practice, I'm pessimistic it'd work. Unless BMW mandated joint SAAB/BMW or SAAB/Mini dealerships, the Scandanavian brand's limited dealer network would hinder the brand. Going toe-to-toe with the Buick's, VW's and Acura's would be a challenge.

    Mini had immediate brand awareness that BMW could milk from the get-go. SAAB has nowhere near the brand cachet.

    That being said, if they could pull it off, it'd be a really cool revival for a brand that even I believe deserved a lot more love than it got.

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    BMW would get a known brand that still has loyal followers and buyers.

    All five of them!!

    On paper this seems like a good idea. In practice, I'm pessimistic it'd work. Unless BMW mandated joint SAAB/BMW or SAAB/Mini dealerships, the Scandanavian brand's limited dealer network would hinder the brand. Going toe-to-toe with the Buick's, VW's and Acura's would be a challenge.

    Mini had immediate brand awareness that BMW could milk from the get-go. SAAB has nowhere near the brand cachet.

    That being said, if they could pull it off, it'd be a really cool revival for a brand that even I believe deserved a lot more love than it got.

    The current Saab network would have no affiliation with the "new Saab" at all. BMW could offer Saab franchises to whomever it chooses from the old network, but would more likely team them up with their existing network.

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I told the man that this handwritten paper did not explain any of what I asked to verify and see, so they would need to properly print out or hand write all details in order for me to make a decision. The rep left and was gone for about 10 minutes and then came back with another salesperson who reminded me of a traditional wild west snake oil salesman who tried to use the same paper I was shown and yet tell me I was not able to understand the complexities of leases and should trust him on this awesome monthly cost. When I told him I would not accept that vague random info, he then moved into the terrible game of "What can you afford a month?" Here is where many people either give up and accept or leave as they feel overwhelmed, I on the other hand laughed and told him that I would not play his game. Show me the valid real numbers with a final price on the Lyriq before processing for the Lease monthly amount.  My wife always told me I was a very frustrating person when it came to buying an auto as I would push for facts and have on more than one occasion made salespeople cry when they could not get their way playing their monthly afford game. This is how people get ripped off and taken advantage of. The two folks left and came back with the sales manager who tried again with the paper to spin a different tale. At this point, I said fine, I would consider this as I needed to talk with the wife, and she would need to drive the auto anyway before we would buy.  Leaving the Cadillac dealership, I drove south to Chuck Olson Kia, figured I would see how the EV9 drove again and see what kind of deal I could get. Arriving at the dealership, I saw the EV9 I was interested in on the lot, looked it over and turned around to see if I can get some help and a young man greeted me and said he was with another customer, but would let another salesperson know I was looking at that EV9. Only a few minutes later, the sales rep came out, greeted me and had the keys so he opened up the EV and showed me the SUV.  Here the experience was similar in that we took the EV9 in Ice Green for a drive. As I drove it, I was informed about the various features and how they all worked. An overview that was enjoyable as I drove the near silent EV locally. I did notice that it was not as quiet as the Lyriq, but most would not really notice the difference, everything else on the road was far louder. We returned to the dealership and sat down; I asked the rep for the best price on this EV9 he could give me. He left to talk to his manager. Now I was comparing the price of the Lyriq Sport level 2 to this EV9 AWD Land edition and the MSRP price between the two was within a hundred dollars of each other. The EV9 had a number of features that the Lyriq did not have unless I paid substantially more and go to the top end Sport Level 3. At this point the Kia was winning on features giving it a better value due to the two being priced nearly the same. The sales rep came back to the table with a price that was $5,000 off MSRP. I felt based on internet searching that this was a fair price and felt it was good. I asked him then at this price with my IRA rebate of $7,500 what would a three-year lease with 15,000 miles a year cost me per month. The rep said give him a few minutes to have the manager put this in the system and he would come back with a detailed price for me. The salesperson returned about 10 minutes later with a Deal Sheet for me to review. Here is where the difference became clear between this Kia Dealership and the Cadillac Dealership. The Deal Sheet had all the numbers listed out clearly. Any person could walk through this in full understanding. The lease deal, started off with the Stock number for the EV9, had the MSRP listed, discount, then Selling price of the EV9. This was followed by a blank field for accessories or add on sales items as the sales rep explained. The rebate for $7,500 was clearly listed, blank space for Trade, cash cap reduction, license fee, doc fee ending in a final price of the EV that was then broken down by 36 months @ 15,000 miles a year for a Base monthly rental cost and then the sales tax on the whole deal which was broken down into monthly tax rate added to the monthly lease amount. Residual value at the end of the lease, a residual money factor that is a decimal number used to figure out the monthly lease rate. All in all, a very clear understandable deal and the monthly price for the EV9 was $837 per month compared to $1,200 plus for the Cadillac. I told the salesperson that I would need to talk to my wife when she got home tonight and would give him a call back. As I was getting ready to leave, I realized I had forgotten to ask an important question. Could the front driver and passenger windows be tinted to match the rest of the auto. Due to having had skin cancer, blocking out UV plus just having it darker is what I prefer. The sales rep said he believed so but would have to check with his manager and could call me if I gave him my number later. I left him my cell number and headed home. Sitting at home, I was thinking about the experience at the Cadillac dealership and wondering, can it really be that bad at any other dealership? So, I did a search and found the identical Cadillac Lyriq Sport 2 AWD Celestial Metallic at the Bellevue Cadillac dealership and much farther away at Larson Cadillac of Fife. Off to Bellevue I went. Arriving at the Bellevue Cadillac dealership, I was promptly greeted and professionally questioned on the auto I was interested in. The young man was always polite and more than happy to help me. This dealership is one of the newly built from the ground up dealerships that truly echo's Luxury and what I would expect from a luxury dealership. Due to the knowledge of the salesperson like the other dealership, it started off positive, went out to check and see if the auto their website stated they had on hand was actually there. It was, Identical to the one at Brotherton Cadillac NW in Shoreline Washington. At this point, I gave him the same info I had given the other person to see what the pricing would be. Ten minutes later he returned with a printed sheet of paper, that was better than handwritten. Had a set sale price that was a couple thousand off the MSRP, had a rebate of $1,000 showing a reduced price, document fee, licensing and a theft engraving that he said they do on all autos sold there so nothing I could do about not wanting it. The total at the end showed a lease money factor, term, mileage and residual with a base payment of $1,042 dollars. with no money down.  Now two things I noticed, one was that the IRA rebate was not showing anywhere on the paperwork and the second item was that at least their price was over $200 less than the other dealership. I inquired about the $7,500 rebate and he said he did not know and would go ask. Upon returning he said it was factored into the residual value of the Lyriq when I traded it back in. I pointed out that the rebate does not go into a value of the vehicle but is paid to the dealership and so comes off the price of the auto. Things continued to go downhill from here as I was told by him that I did not understand how leasing worked. His sales manager stopped by, and I pointed this out, same response, I do not understand how leasing works. I informed them that I would need to present this to my wife and discuss it with her. They attempted the pressure response of get her on the phone, we can explain it and you can drive home in your new EV. They were not happy with me and would not let me have the paperwork. When they stepped out to talk, I snapped a quick picture of the printed paperwork. Two Cadillac dealerships, two different lease prices on the identically spec / priced Lyriq Sport 2 and no honest showing of where the rebate would end up at.  Heading home this made me wonder about Cadillac and their EV focus which we have since learned in the news has changed to having ICE and EV through 2030 and beyond. At home, I explained my day of EV shopping to the wife, she was disappointed that Cadillac was not forthcoming with their pricing. She liked the looks of the Lyriq as much as the looks of the Kia EV9. At this point the phone rang, and it was the sales rep for Kia. He informed me that yes, the doors could be tinted and that his sales manager if we were willing to move forward with the deal would throw in the front window tinting. We setup an appointment for Saturday morning to go and test drive the EV9 with the wife to ensure she would be happy driving it. For full details on our EV9 Purchase read this story: Now at this point, I figured I would relax for the evening, but I got another phone call from a sales rep at Larson Cadillac who informed me that the Lyriq I was interested was already sold at their dealership, but he could make me another deal on a like existing Lyriq, different color. I informed him that my wife liked the 800V Lyriq in the Celestial Metallic. The man on the other end of the phone said he could see if they could do a trade to get what we were interested in, but he wanted me to understand that the Lyriq was not a true 800V EV. I was surprised by his comment and asked him why it was not a true 800V EV. I learned and have verified that the only EV GM makes that truly can handle 350 kW fast charging is the Hummers, the Lyriq has an 800V electrical system, but the battery packs are first generation and as such only rated at 400V meaning they have a top charging speed of 150 kW. GM is planning to roll out 800V battery packs starting with the Chevrolet and GMC full size pickups. All other EVs will continue to use the 400V battery packs for now. At this point, I thanked the man for his time and would think on it and get back to him. As a person wanting to be current, this takes me to the Kia EV9 only. I did not say anything to my wife about the tech and hoped she would be happy with how it drove. Luckily that was a success the next day. I have spent half my life on the sales side and in training new sales folks there is a pretty basic 5 step process in sales: 1) Greet the customer inquiring what brought them in today 2) Qualify the person on what they want 3) Trial close to see if they are ready 4) Clarify questions and overcome concerns 5) Close the Sale. To accomplish this basic 5 steps, you first have to fully train the individual in what they are selling. Here Cadillac clearly is not or possibly the dealerships are not wanting to ensure everyone know how to sell an EV. Recap of this whole shopping experience is that Kia is nailing it with a professional sales experience, knowledgeable people on their products and a sales / lease process that is clear hiding nothing from allowing you to commit to buying or leasing a new auto. Cadillac on the other hand has left me with the feeling of snake oil salespersons at both dealerships with vague pricing, vague rebates and me wondering just how much they really want to earn my repeat business as I would love to replace my current Escalade with an Escalade IQ, but at this point, Genesis the luxury brand for Hyundai / Kia will reveal their Full Size GV90 ICE/Hybrid/Electric SUV summer of 2024 and I might just be replacing it with a Genesis. Any questions, ask away.   View full article
    • Rivian? Value? That's hilarious.🤣
    • Let me put it this way, The amount of money I saved with the interior having more room inside than my current Escalade and the silent comfort, It is a win to me with not having to deal with any of the ICE maintenance or gas trips. My leasing / buying story should help enlighten you on why leasing an EV is a good thing right now. I am also putting in a Level 2 charger at the house that will be another story on the research, cost, etc. So you can follow up on that story too.
    • I stumbled upon a small meetup this weekend. There's a new custom/restoration shop about two blocks from my home and I was walking to a Casey's to grab a cake donut for my wife (hahaha) and this is right next to the Casey's.  This grey Chevelle was perfect, absolutely perfect. The plate is the name of the shop, Xtreme (restoration, bodywork, modification). I'm sure this is their show piece, and what a piece of work/art it is! I believe the van is theirs as well.  Later that day we ran to Aldi and came across the International Scout. it was far from mint condition, but it was "pretty good" but even cooler to see it just out and about. 
    • That's an exciting purchase, EV is tempting to me, but I still think all these current Gen EV's are too expensive compared to ICE cars.  If they can cut weight and cost 15% then I think the flood gates open on EV sales.
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