Wall Street Journal Says Saab Must Be Carved Out Of GM

Posted on 13. Jan, 2009 by in 2000-2009

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The Wall Street Journal says today that Saab must be carved out of GM in order to receive state aid from the Swedish government.

I am liking where this news dialog is going today, especially after Saab Automobile AB’s own Jan-Ã…ke Jonsson has said that in order for Saab Automobile to succeed, they need to be separated from GM.

DETROIT (Dow Jones)–Ford Motor Co. (F) and General Motors Corp. (GM) will have to “carve out” Volvo and Saab to secure any state aid from Sweden, a senior Swedish official said Monday.

“Sweden also plans to synchronize approval for any aid with the March timetable laid out by U.S. authorities monitoring loans granted to GM and Chrysler LLC.”

We know that the “carving out” of Saab from GM will be challenging, but certainly not impossible given the integration between them.

It will be interesting to see how this de-integration process begins with Saab Automobile and General Motors. I hope it yields the same positive results as it did with Daimler after departing from the DaimlerChrysler split I mentioned earlier.

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No Responses to “Wall Street Journal Says Saab Must Be Carved Out Of GM”

  1. todd agostini

    13. Jan, 2009

    Since John McCain wasn’t elected I hope he will let us use his “hatchet” instead of Obama’s “skalpel” to “Carve saab out of GM”.

    Lets get this over with already.

    It may close thier U.S. operations but damn lets just get this over with.

    Reply to this comment
  2. Stephen Goldberger

    13. Jan, 2009

    It looks like Saab will be repositioned as a
    separate company within GM (back to the future, as it were), with an
    accounting wall between them. GM will be invoiced for services
    (turbocharging, suspension, electronics, safety) from Saab, and Saab
    will be invoiced for goods and services provided them by GM (back-room
    administrative support, parts). All Saab production might be
    concentrated in Trollhattan, save the 9-4. (Already done that, you
    ask? Well 9-5 production in Trollhattan is scheduled to end by
    spring, and the new model was scheduled for Russelheim. And the
    contract with Steyr for convertibles is close to the end.) This is
    motivated by the Swedish Government, which has expressed willingness
    to loan GM and/or Frod money, so long as it stays in Sweden.
    Reconstituting Trollhattan as a “Saab Assembly Plant” rather than a
    “GM assembly plant” would go a long way toward making Saab (the
    company) sellable, that along with Saab Engineering and Design being
    reconstituted as a separate entity.

    Anyway, it looks like Saab will have one more last chance to stay in
    business, if it can be a profitable, wholly owned subsidiary of either
    GM or someone else.

    Reply to this comment
  3. Ryan

    13. Jan, 2009

    Todd,

    This seems like it’ll be a process, certain things can become more independent than others at quicker rates and vice versa, such as new products, existing parts supplies, service agreements with dealerships and warranties with customers, etc.

    There needs to be a substantial plan that is designed logistically and has no missing pieces, considering everyone which includes in order of my preferred priority:

    A) The Customers, B) The Dealerships, C) The Suppliers, D) Saab Automobile (Designers, Engineers, Marketing) & The New Owners.

    Stephen,

    You are probably right on from what we’re now reading about this process.

    Reply to this comment

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