GM struggles to sell SAAB
January 9, 2009 by Matt Brogan
Sources close to the efforts to sell SAAB say General Motors has found no interested buyers and is now struggling to off load its premium brand.
GM put SAAB under strategic review as part of the long-term viability plan, as submitted to Congress last month, and has admitted the current arrangement with the Swedish brand as a part of the GM group is not working as had hoped.
While GM has not announced a decision to sell the brand publicly, it has quietly shopped the idea within the industry the source said. Corporations typically consider whether potential buyers exist for a business when conducting strategic reviews.
The lack of interest makes SAAB the second brand GM has been unable to shed as the global financial crisis curbs merger and acquisitions. The automaker has also failed to find a buyer for Hummer, which was put under review in June.
As part of the survival plan, GM also said it will trim its Pontiac line and explore the future of Saturn.
Joanne Krell, a spokeswoman for GM’s Premium Brands (Hummer-Saab-Cadillac, declined to discuss efforts to sell Saab.
“We are not commenting on the details of the strategic review,” she said. “As soon as we have some details to report, we will.”
GM bought half of SAAB in 1989 and the rest of the company a decade later. Under GM, SAAB sales in the United States have never topped their peak of 48,181 set in 1986. SAAB sold 21,368 vehicles in the United States last year, down 34.7 percent from 2007, while the overall market dropped 18 percent.
The exchange rate between the euro and the dollar means that nearly every SAAB sold in the United States is sold at a loss to GM, one of the sources said.
In December, Sweden’s government announced plans to provide up to 25 billion kronor ($3.19 billion) in credit guarantees and emergency loans to SAAB and Ford’s Swedish unit, Volvo. Ford said last month that it’s again looking to sell Volvo.
SAAB leaders said they would decide whether to apply for any of the funding. At that time, Eric Geers, a spokesman for SAAB was quoted as saying,
“We have to work out the details, but this is a good step from the government with whom we have been having good discussions.”
Geers said it was too early to say whether SAAB would apply for the funding, but it is thought the brand will apply for some money.
Incidentally Hummer sales in the US are down 50.9 per cent (year on year) for 2008 to 27,485 units.
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Poor, poor GM!
Hardly surprising as Saab is in my opinion a dying brand. It has not produced a class competitive class for some time now, and come to think of it, when was the last time Saab launched an all new vehicle. Under GM supervision, Saab has become a third tier premium brand behind the Germans followed by the likes of Alfa and Volvo.
^I think that would be the appeal of the brand. The new buyer can add their own mark to the Saab brand and revive it, something GM failed to do.
I remember reading an aricle on another automotive website which said that the Swedish govt was considering a bailout for their Auto Industry so maybe they could simply buy Saab off of GM.
Saab has been GM’s worst performing brand for a long time now. Even if they wheren’t in financial trouble it’s hardly surprising that GM wants to be rid of it.
I think GM are finding it’s a bit late for a fire sale when:
a) Others realise that if they wait a while they might be able to do a better deal when administrators are appointed after the bankruptcey
b) Nobody is buying anything anyway
Ford’s timing would appear to have been better, with obviously better stock to sell as well (Jag etc.)
Maybe they will have success if they pop it in a box, write “free to a good home” and dump it on the gutter by the road.
If gm would have done good job with it like ford has done with jaguar then thay would have something good to sell.But thay just have not released any new cars thay are good come to think of it thay still look same as all the old cars,it seem gm is running lot brands down in stead or moving up the ranks there all going down
Quite ironic really – GM does nothing to revive Saab other than approve a couple of facelifts and now they can’t get rid of it because it’s a boring go nowhere brand right now, all thanks to GM.
tough luck, greed does that
I always laughed at how much GM had simply raped & pilledged the good bits from Saab, and then let them stagnate in comparison to the way Ford went about rebuilding Volvo. Very good comparisons of corporate mentality as both were purchased in similar period and the yet the net results are poles apart.
Frontman……………I thought the same myself !
Volvo is leaps and bounds in front of Saab……….
Volvo may be leaps and bounds in front of SAAB but they too are losing a motza, hence Ford’s desperate attempt to offload them. As in SAAB’s case no one is interested, including the Swedish Government.