| 10 months ago :: Feb 20, 2009 - 11:14AM #1 | |
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Howdy All,
I just read online that Swedish carmaker Saab has filed for bankruptcy. Here is the scoop from Autoblog:
General Motors confirmed this morning that Saab's days as a part of the Detroit-based company are numbered. The Swedish brand has filed paperwork with courts in its home country for reorganization that would lead to its independence. This self-managed reorganization is analogous to the U.S. Chapter 11 bankruptcy process, and would lead to the establishment of an independent entity based in Sweden. In order for that to happen, however, GM needs to line up financing for the new company, which may be problematic. Automotive News reports that as much as $1 billion may be needed to make Saab sustainable on its own.
From what I am reading, it looks like the ol' U.S. taxpayer is about to get stuck with the bill once again.
What do you think? |
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| 10 months ago :: Feb 20, 2009 - 5:00PM #2 | |
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Good question Otis. I dislike the government involvement at all, but if the situation is as described a few billion to Detroit are well loaned compared to just giving it all to the New York bankers. I have never been into Saabs, but I think GM should have kept them as autonomous as possible. A Trailblazer with a Saab badge? Please! I have seen all kinds of badge engineering and this was the most hopeless dilution of a brand name ever. Likewise with Saturns. They attracted a different buyer from a regular GM vehicle and were not intended to be a full line company, but they ended up with a rebadged minivan and Envoy, among others. The Hummer made a few quick bucks but of all things GM should know that a niche vehicle fashion statement has a limited shelf life. With all that GM did to establish branding over the years it is hard to believe the message is so lost at the present. I read a theory years ago that an automaker can build a stylish and attractive car at a good price, but it cannot build PRESTIGE! The public must think a Pontiac, Olds, or Buick (or Mercury) is a superior car to a Chevy (or Ford) and be eager to pay the extra money to trade up. If their neighbors or relatives also see this as an upgrade and are impressed by the purchase than so much the better and the cycle continues. Toyota learned this very well with Lexus. Everyone knows a Lexus is a Toyota underneath, but it is improved enough that it is worth extra money to buyers, just like a Buick used to be. Likewise, it can then work in reverse too, if the better model is prestigious enough it can rub off on making the base model more desireable by association. And the best part is that while it costs a little more to build the upgraded car, if the prestige works you can charge a LOT more for it. GM invented it all, and it still works for Toyota and Nissan (and other consumer goods, Ralph Lauren and Calvin Klein). And it could still work for GM with the right products, but it is a shame that they nickel and dime their way into missing out on the benefits of their own system. A Pontiac line of one or two Australian cars? Bunkie Knudsen and John DeLorean must be spinning in their graves..... Todd
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| 10 months ago :: Feb 21, 2009 - 12:47PM #3 | |
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Good post, many qyestions? GM is not only looking to get rid of Saab, in banko, it is also looking at selling off Saturn, a brand within itself, and dropping the Ponitac name in its entirety !!!! They have to act, and act now !!! A very good friend of mine that sits at many Auto Manufactures tables told me that; They all expect, when the dust settles over the next 1-2 years, there will be maybe 8-10 TOTAL auto manufacturer's left. MERGING is the name of the game, hell, it was merging in hard times that created GM, correct !!!!!!!! Mercedes and Benz amalgamated in 1926, vuuuala, >>Mercedes Benz. Auto Union was formed by combining - , Horch, Audi Wanderer and DKW for survival, >>>Vuuuala, the 4 rings in the Audi Grill, DAM, I wanted to post that as a trivia question, >> just especially for PINTO_MAN, ha ha!!!! Hey, look at Studebaker, Packard, AMC and a mountain of others that never weathered the storms and went out of existence >>>>> Is History repeating itself guys ??????? Till the next time, |
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