General Motors' precarious cash position and a dire automotive market means that some blood-letting will occur to some of GM's brands. The General has mentioned that Saab and HUMMER are up for strategic review, which Maximum Bob Lutz told Automotive News was "code for we realize they're not working and something needs to be done." Many are expecting GM to sell Saab, but unfortunately you need a seller and a buyer to strike an accord. And sources are telling AN that the General doesn't have the latter. Tight credit markets could be part of the problem, and any would-be buyers that have ample cash on hand are likely to be hesitant to part with it. That's especially true when considering the fact that Saab's sales declined at nearly twice the US industry decline in 2008, with only 21,000 units sold. The Swedish government may make it a little easier to keep Saab after it offered up $3.1 billion in loans to aid its industry (including Volvo). GM likely needs as much short-term cash as possible right about now, but the fact remains that the Swedish brand hasn't brought much success in the past 20 years, and the near-term prospects don't look very good, either.
[Source: Automotive News - Sub. Req.]
GM sees no buyers for Saab originally appeared on Autoblog on Fri, 09 Jan 2009 16:03:00 EST. Please see our terms for use of feeds.
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