REPORT: GM getting Saab ready to stand alone

[BigPontiac]

Link to Article

In the interest of making its Saab brand more attractive for purchase, General Motors is reportedly looking at returning more autonomy to its Swedish subsidiary. As it stands now, Saab is basically a glorified Swedish imprint of the Opel record label. Indeed, a lot of engineering, and even construction, for Saab cars goes on in Russelsheim, Germany, Opel's home.

The biggest development is that Saab would gain control over its own finances and decisions. Although GM would still be Saab's owner, the Swedish Patient would have its own budget (a figure that has yet to be determined). The idea behind the move is that giving Saab additional financial autonomy would demonstrate to potential buyers that the division is capable of standing on its own.

If Saab is sold, it will obviously take some time to separate itself from GM platforms, but increasingly independent decision-making could help speed up the process. Saab board members and the president of Sweden's IF Metall trade union feel that a standalone Saab can work and be more enticing for potential suitors. The final verdict will be revealed when GM submits its business plan to the US Government on February 17th.

[PurdueGuy]

Now, do this with Saturn again...

How exactly does this help GM not lose money with Saab? The only positive thing I see it doing is trying to make it more appealing to potential buyers. I personally think it's going to take a LOT more than this to make it appealing to buyers. Something like... Saab becoming profitable. In which case, GM would be better off keeping it...

I don't hate Saab, but I'm darn skeptical that this is going to do much aside from drag out the long & painful death of Saab.

[Drew Dowdell]

uhm... run this by me again? If Saab is unable to stand with GM... why would it be able to stand without GM?

It's like...you fail at riding a bike with training wheels, so your Dad takes the training wheels off.....

[Croc]

uhm... run this by me again? If Saab is unable to stand with GM... why would it be able to stand without GM?

It's like...you fail at riding a bike with training wheels, so your Dad takes the training wheels off.....

Disagree. SAAB has been watered-down so much within GM and starved for product. Maybe with this autonomy SAAB will be better, and at the very least it will be more attractive to buyers as it is not so tightly integrated into the mediocre GM blob.

[FUTURE_OF_GM]

Honestly....

This is what needs to happen with ALL GM niche divisions (READ: Saab, Saturn, Pontiac & Hummer)

ACTUALLY, this would probably be a good thing for ALL GM divisions.

Why not execute this plan at some level throughout the organization?

Maybe even divisional partnerships. Chevrolet, Buick/GMC, Pontiac/Cadillac, Saturn/Saab.... Or, Cadillac/Hummer, Saturn/Saab, Buick/GMC, Chevrolet/Pontiac.... Or even GMC/Hummer, Cadillac/Buick, Chevrolet/Pontiac, Saturn/Saab.

[smk4565]

No one wants to buy Saab, and if they stood as their own company they would be in Chapter 7 bankruptcy within 2 months. This is GM making it look like they are trying to change, so they can ask for more government bailout money in March. Otherwise, GM themselves will be filing for bankruptcy.

[balthazar]

Has nothing to do with asking for money, it's an effort to make saab more appealing to potential buyers from a disentanglement standpoint.

[Intrepidation]

So is the next 9-5 stillborn? Shame, Saab has so much potential and GM has wasted it.

[David]

Personally SAAB is a brand that should have never been bought, it should have just died and become a part of history. There are still to many name plates / Brands in the world and with the economy going the way it is. It would be best to just take it off life support and let it go.