May 27, 2012
Published: 22 Jan 12 09:04 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/38644/20120122/
Saab's bankruptcy administrator said at a press conference on Saturday that the company is dead but continues to bleed, while retaining hope that a buyer can be found.
What do you think? Leave your comment below.
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Though I will lament the passing of the romantic era of the auto it is going to happen. It's all about market share and only the mega companies will survive.
The Chinese are already taking Volvo in a direction that I feel will destroy the company. They seem to desire to create a luxury European themed brand in China and have chosen Volvo as the vehicle. This is contrary to everything that Volvo has stood for throughout it's history and will, I feel, be it's undoing.
If one looks at automotive history it is full of fascinating and wonderful cars that were not viable for the masses.This is sad and I for one feel fortunate to have lived in an era of romance with the car.
The harsh truth is there was only just enough room in little Sweden for one car company, a tiny outfit like Saab did not fit into a hyper-competitive global car industry where economies of scale and shared development costs are essential. Management, unions, politicians, and even GM, for a while, lived in a state of denial. But the harsh realities of capitalism finally caught up with Saab and did it in. Saab is dead; good! It didn't deserve to live. The Euro is next, that doesn't deserve to live either.
Politicians and dreamers have to up their game. We can't afford to keep paying for this sort of nonsense. It's bankrupting the world.
Other options:
1. Open a Casino at the SAAB factory until all the debts are paid off + a huge cash reserve.
2. Sell SAAB to apple so that they can make an iCar. Apple never had a problem chargin a premium for a beautiful and intuitive product.
3. Get into F-1 racing just long enough to accuse another auto maker of stealing your car plans, and so get a 250 million dollar settlement.
OK I guess the patient really is dead .... not a very serious comment I guess but I am actually sad to see SAAB drive off into the sunset for good.
Accordingly a slightly more serious option #4 to my previous post would be to make high tech police cars, ambulances, or military vehicles (in partnership with Bofors for example) with added instrumentation from the relatively large Swedish defence industry, if there is any room in that market.
SAAB airospace has a niche market that allows it to sell military jets and strike manufacturing sharing arrangements where the Americans are relectant to sell their or assemble their F-16's, F-18's, F-35's etc.., such as to India and possibly Brazil. One wonders if SAAB automobiles could make a high speed and highly equipped military vehicle that would be of interest to places that are not traditional American allies, or even to places that are.
Half of the employees would refuse to return to the production line on moral grounds (refusing to make military vehicles), but this would trim down the workforce to make the new venture slightly easier to start. And half or more of SAAB's auto fans would maybe be very angry or feel betrayed, but anyway this might keep the factory going, unless the re-tooling to make police cars, ambulances, or light weight military vehicles is too expensive, and/or if the market for these is too competitive already.
Or maybe the only market left is for the type of vechilce that SAAB itself make require, namely, a hearse. Hope not, but the vital signs (other than bleeding) indeed look grim.