When Will Saab Make An Official Buyer Announcement?

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1. 

   peter
   

   15. Jun, 2009

   Probably worth making a few points …………

   At this stage the bid situation is confidential, so the players and their positions are speculative. In 1989 Fiat was the preferred partner until the Press announcement uncovered the GM deal. It was a very well kept secret.

   Saab cannot stand alone as a specialist car company. It needs a volume manufacturer to enable the Saab name to continue as we know it. Unless there is a very wealthy benefactor !

   Saab can no longer design a new product. Much expertise has been shared with other GM companies, mainly Opel. So, complete engineering and production skills are no longer in place. The distribution chain is heavily dependant on GM companies. There are no Saab engines available. There is no Saab finance department, purchasing department, IT department, etc.

   Saab needs a substantial cash injection just to be able to continue as a car manufacturer (assembler ?).

   They have new product (GM designed) that can last up to 10 years. GM royalties will not be cheap, putting pressure on Saab profitability.

   Fiat
   Fiat would have been a good player. They could replace the GM contribution for Saab. They are strong in Southern Europe and S America, but weak in Scandinavia and N America. Saab (+Lancia and +Alfa ?) could fill in the gaps. As Saab = Opel, withdrawing from Opel ended the Saab ambition.

   Private Equity
   These companies see a future profitable disposal, either by effecting short term cost savings or breaking up the company. It is difficult to see them keeping Saab beyond the current model cycle. But maybe, there could be more interest as the economic cycle recovers.

   Koenigsegg
   Koenigsegg alone do not have the expertise or financial strength to complete this acquisition. Many of the private equity comments above also apply to them, if they are working with Private equity partners.
   However, it may be interesting to look at the reported partners. Vattenfall, Innovatum and Power Circle.

   Could Koenigsegg, Vattenfall, Innovatum and Power Circle be considering production of ecological vehicles ( or other products ) using the existing factory ?

   What is certain is that all the speculation to date is just that. Speculation.

   Assembly of private jets using the Saab name, anyone !

   Peter

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