Why GM is not totally at fault for the downfall of Saab

Posted: January 26th, 2012 | Author: | Filed under: Saab | Tags: , , , | No Comments »

Almost everyone might be blaming GM for the dying Saab brand. Experts though tried to look at the scenario from different perspectives and reason out that it is not all GM’s fault:

The first decade of ownership of GM involved having a 50% stake which has only minimal management control .
Saab as a brand has already been compromised with components and chassis sharing even before GM got involved.
GM also issued their reservations and concerns when the Chinese showed interest because of inevitable technology transfer.
Selling the brand to Spyker showed that GM did not want to kill the Saab brand but what could have been the right step during that stage.
If due diligence was done on the end of GM, Saab should have not been sold to Spyker and should have just been closed.
The Spyker purchase of Saab was an impulsive purchase. Spyker acquired Saab as a trophy brand to pull up their credibility. Spyker and its management did not have the skills and experience to manage a big brand like Saab.
Spyker did not handle the negotiations with the Chinese well. They were not in control. It was naïve of them to think that GM will waive its objection to the involvement of the Chinese.
The initial 54% stake of the Chinese was given a go signal by GM and was only blocked when the Chinese wanted a total ownership.

Looking back, GM took Saab from the noses of Fiat after Ford out maneuvered them for Jaguar. Just the what if’s of life, what might have been if Saab remained with the Italian company.

Leave a Reply