As previously reported Saab will not be owned by Koenigsegg at least for now and Saab, or should I say General Motors is left with a few options. The most talked about option is the ‘death’ of the Saab brand. General Motors previously said that if Saab is not sold by end of the year, the auto giant will bury it. Other possible options include the take over by other companies that are interested and when it comes to this, many are pointing towards Chinese companies that are on a take over frenzy.
Geely is very close in sealing the deal with Volvo and there is possibility that it may extend its interest to Saab. We should not discount other companies like Dongfeng, BAIC, Fiat, Merbanco (US-based merchant bank) and so on. One thing is for sure, who ever is interested to take over Saab has to part with a lot, and I mean a lot of money. One would have buy it from General Motors and then spend a hefty sum and not to mention a lot of time bringing the brand back into profitability.
The Swedish government is unlikely to make a bid because it recently revealed that it has no interest in owning Volvo or Saab, however it has promised to provide up to US$ 3 billion in loan guarantees. There is also a possibility that General Motors will eventually keep the brand, just like what it did with Opel. The reason behind that was the improved business environment in Europe, according to General Motors that is.
This is what General Motors’ president and CEO Fritz Henderson said when they decided to keep Opel, “While strained, the business environment in Europe has improved. At the same time, GM’s overall financial health and stability have improved significantly over the past few months, giving us confidence that the European business can be successfully restructured.”