[Visran]

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[Aditya]

Mahindra is once again rumoured to be eyeing a stake in Saab.

Link to Team-BHP News Article

[abhishek46]

Originally Posted by Aditya

Mahindra is once again rumoured to be eyeing a stake in Saab.

Link to Team-BHP News Article

We saw in Top gear that Saab's factories are closed now. And also, they showed how the Swedish's passion for excellence and quality spelled doom for them, they went from one manufacturer to the other and couldnt remain profitable at all.

I doubt mahindra can benefit at all from this move if they try to restart Saab.

Well, they are looking at bringing in some Saabs to india - rebadged as Mahindra Saab.
or gain some new platforms and/or engine technology?

[Cyrus_the_virus]

Originally Posted by abhishek46

Mahindra Saab.

Nice one

I think History has lost count of the number of companies that tried to revive Saab unsuccessfully. I wonder what Mahindra is seeing in this? Even I thought the company was dead! However, it looks like they have a few models lined up for 2014

In 1989 the automobile division of Saab-Scania was restructured into an independent company, Saab Automobile AB. The American manufacturer General Motors took 50% ownership with an investment of $600 million, and then in 2000 exercised its option to acquire the remaining 50% for a further $125 million; so turning Saab Automobile into a wholly owned GM subsidiary. In 2010 GM sold Saab Automobile AB to the Dutch automobile manufacturer Spyker Cars N.V.[3]

After struggling to avoid insolvency throughout 2011, the company petitioned for bankruptcy following the failure of a Chinese consortium to complete a purchase of the company; the purchase had been blocked by former owner GM, which opposed the transfer of technology and production rights to a Chinese company.[4] On June 13, 2012, it was announced that a newly formed company called National Electric Vehicle Sweden (Nevs) had bought Saab Automobile's bankrupt estate.[5] According to "Saab United", the first Nevs Saab 9-3 drove off its pre-production line on September 19, 2013.[6] Full production restarted Monday December 2,[7] initially the same gasoline-powered 9-3 Aero sedans that were built before Saab went bankrupt, and intended to get the automaker’s supply chain back up and running as it completes development of its new Nevs products.[8][9]

[volkman10]

M&M will be co-owner of SAAB, agrees tol buy majority stake in Saab owner NEVS.

The majority owner will negotiate with Saab AB to use the Saab brand name and badge. Saab AB withdrew permission after NEVS applied for creditor protection. NEVS expects to be able to renegotiate the Saab brand agreement following a solution to its funding troubles.

http://europe.autonews.com/article/2...vs-report-says

[ajmat]

Considering a Bangalore Lawyer who is close the the Reva team is writing excellent food blogs from scandanavia, I am not too surprised

[Steeroid]

I wonder if they will rename the brand and make it Saabio in line with M&M's naming convention.

I wonder why they are going around buying fringe automakers like Ssangyong and Saab. Its not like these companies have products that Mahindra wants to sell, nor could it be because M&M want to sell their overtly made-up range in Korea or Sweden.

Its a puzzling strategy, assuming there is a strategy to begin with.

[stanjohn123]

This is great news. Why wouldn't anyone be proud of such an acquisition ? Saab make great cars and are very passionate and proud of what they do. I hope with this takeover they don't change that philosophy of not compromising their ethics and value for the sake of profit.

This is one manufacturer I have great regards for. They just don't give a damn about who buys them and will build cars the way they want to. Adamant , probably yes but that's what makes Saab cars good.

[shortbread]

Originally Posted by stanjohn123

This is one manufacturer I have great regards for. They just don't give a damn about who buys them and will build cars the way they want to. Adamant , probably yes but that's what makes Saab cars good.

SAAB doesn't do anything exceptional neither does it have great R&D prowess like many claim. There was a time (upto late 80s) when this was an engineering driven company who believed in what they did rather than simply follow general trend.

But since the GM takeover its undergone a steady rot and its deterioration for the last 25 odd years has been painful to watch. GM simply wanted to use a different top hat on Opel platforms and brand them SAAB with a price premium. It never worked and SAAB simply became a facelift shop with the absence of any real engineering prowess.

The only thing SAAB can make now is the 10+ year old 93 model. If Mahindra wants to turn around SAAB it must pump in billions in product development and marketing which in itself is questionable considering the time it will take for profits to show and the fragile state of the European economy SAAB's primary market.

But if Mahindra just wants to use SAAB as a fringe brand and rely on low volume niche sales, it doesn't look to be worth the time and effort.

[zenren]

Interesting development. I can only think of one reason for Mahindra to jump in and infuse funds in NEVS - expansion of the Electric car platform beyond the Reva. This might be mostly tied to the R&D collaboration for electric vehicles.

Another possible reason: Increase M&M brand value in International markets as the owner of Saab, just like their competitor is the owner of JLR.

[shortbread]

Indian billionaire Anand Mahindra is close to sealing a long anticipated deal to buy the remnants of collapsed Swedish car group Saab, marking the tycoon’s latest attempt to accelerate his company’s global expansion by acquiring a premium auto brand.

Mr Mahindra’s flagship auto group Mahindra & Mahindra, India’s leading sport utility vehicle maker by sales, plans to buy a majority stake in the parent company that owns Saab’s brand, according to documents filed in a Swedish court and reviewed by the Financial Times.

Saab collapsed in 2011 following years of financial difficulties, despite a small but passionately loyal following that was perceived to be dominated by environmentally conscious liberals and bookish university professors.
The group was rescued in 2012 by National Electric Vehicle Sweden, a Hong Kong-managed company, which attempted to relaunch the Saab brand as a manufacturer of electric cars, before itself running into financial trouble.
Mahindra is set to take a majority stake in NEVS, in the process acquiring the Saab brand, the Swedish court documents state. Mahindra declined to comment.

Any deal would mark the culmination of a long courtship by the Harvard-educated Indian tycoon, who first tried to buy the Swedish carmaker two years ago.

Mr Mahindra has launched a series of attempts to acquire global brands, including an abortive bid for British luxury sports car maker Aston Martin in 2012, and a successful $466m deal for Korean SUV-maker Ssangyong in 2010.

The tycoon’s entry-level SUVs enjoy a dominant position in India’s market, but Mr Mahindra believes his group needs to acquire premium brands if it is to win over consumers in industrial economies.
In 2013, Mr Mahindra told the Financial Times that “we need brands, because the one thing you cannot build, if you want to grow globally at least — something that can take a lifetime, and we are in a hurry — is brands”.
High quality global journalism requires investment.

In particular, Mr Mahindra is understood to have ambitions to launch a premium SUV model, tapping into a segment that has proved hugely lucrative for carmakers such as Germany’s Porsche and Audi.
That aim provided part of the rationale behind his planned Aston Martin purchase, according to people familiar with the company’s thinking, suggesting that Mahindra may now consider developing an SUV model under Saab’s brand.

Mr Mahindra is also an enthusiast for electric cars, providing another potential rationale for the tie-up with NEVS. Mahindra & Mahindra launched its first electric model last year.
Saab struggled with losses for the past two decades, with ownership as volatile as its finances.
General Motors sold the Saab brand to Dutch group Spyker after the financial crisis. However, Saab declared bankruptcy in 2011.
The Saab brand was then sold to NEVS, owned by a Chinese-Swedish businessman and the city of Qingdao. NEVS sought bankruptcy protection in August.

NEVS lost the right to use the Saab brand from the similarly named defence company. However, NEVS believes a new owner will help it regain the right to use the Saab brand.

A Swedish district court is set to rule this week whether to extend NEVS’ protection from bankruptcy to enable it to try to finalise a deal with Mahindra. Most creditors back an extension, although one argued against it for fear that NEVS was selling assets to fund ongoing operations.

Source - Financial Times
Link - http://www.ft.com/cms/s/0/b3add3fc-8...#axzz3LXNze3Rz