Saab Still Under Strategic Review, Potential Buyers Show No Interest

Posted: January 21st, 2009 | Author: Soeren | Filed under: Corporate | No Comments »

General Motors admits that they are having a hard time selling the Swedish brand Saab. The brand is now under “strategic review” when the car manufacturer submitted a report to the U.S. Congress in search for a long term plan to save its future.

GM has not really disclosed that they are selling the Saab brand but has quietly looked for potential buyers. The term strategic review pertains to the act of the corporation to scan the market for potential interested parties.

The market’s lack of interest on Saab makes it the second brand that GM fails to shed as it goes through mergers and acquisitions. GM also failed to sell Hummer which was under review since the first half of 2007.

The administration of President George W. Bush promised a $13.4 billion package for the car manufacturer. As part of its plan to save majority of its business, GM is looking at trimming the Pontiac brand and explore what the future holds for Saturn.

No official release has been made with regard to the decision about the Saab brand.

GM acquired half of the Swedish brand in 1989 and bought the whole company by 1999. The sales of Saab proved to be dismal through the years. The highlight was in 1986 when they sold around 48181 units. In 2008, Saab only sold 21368 vehicles or about 34.7 drop in sales compared to 2007.

The exchange rate of the dollar and euro has been hurting the Saab line. According to experts, a Saab sold in the US has been sold to at a loss to GM.

The Swedish government may also step in with a $3.19 billion credit guarantee for Saab and Ford’s Swedish line, Volvo. There are no words yet whether Saab will apply for the funding.

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