End of SAAB in 10 days? EDIT : Sold!

Brabus E V12 · 18th February 2009, 17:39

This is interesting, Saab the Swedish carmaker owned by America's General Motors (GM), could go bust within ten days without an immediate injection of state aid, the US company warned last night.

I am sad to hear this as I remember my Dad owned Saabs when we lived in Sweden. I just hope Volvo doesn't end up in the same situation. :-(

GM said that Saab was losing so much money so quickly that, without government intervention to secure its future, the subsidiary could be forced to file for reorganisation by the end of this month.

But this morning, the Swedish Government appeared to rule out the prospect of state support in the interim period.

“The Swedish state and taxpayers in Sweden will not own car factories,” Maud Olofsson, the industry minister, said. “Sometimes you get the impression that this is a small, small company but it is the world’s biggest automaker so we have a right to make demands.” "When I see that Saab has been running at a loss for so many years it would be irresponsible for me to stand here and say, sure, we are going to use the taxpayers' money in this way. I don't think I was elected to do that," she said.

Source: Saab may go bust in 10 days, warns GM - Times Online

HappyWheels · 18th February 2009, 18:03

Sad that a brand such as SAAB is going down like this.

Quote:

Originally Posted by Brabus E V12

... Maud Olofsson, the industry minister, said. “...When I see that Saab has been running at a loss for so many years it would be irresponsible for me to stand here and say, sure, we are going to use the taxpayers' money in this way. I don't think I was elected to do that," she said...

Wow! Now, this is one hell of a elected candidate!

Torqy · 18th February 2009, 18:10

Quote:

Originally Posted by Brabus E V12

"When I see that Saab has been running at a loss for so many years it would be irresponsible for me to stand here and say, sure, we are going to use the taxpayers' money in this way. I don't think I was elected to do that," she said.

Source: Saab may go bust in 10 days, warns GM - Times Online

I wonder what our goonda ministers and politicians would've done in a similar situation.

Nikhilb2008 · 18th February 2009, 18:19

Quote:

Originally Posted by Torqy

I wonder what our goonda ministers and politicians would've done in a similar situation.

They would have allocated crores of rupees for SAAB but not a penny would have reached SAAB.

pranavt · 18th February 2009, 18:23

Wonder how that is relevant to the thread in any way...

Brabus E V12 · 18th February 2009, 18:51

We all know what our corrupt to the core ministers would have done! No point in wasting space for those idiots.

But anyways what the Swedish Minister has said is very relevant. There is no point in ploughing money into a depreciating asset. I am quite amused how the American Govt is going on giving billions in aid to Ford and Chrysler. Why would you need more money to cut costs?
You have to let them crash and re-start. It may spell the end of a few marques but then thats how industries function. Ploughing more money into them will only make it worse.

Nikhilb2008 · 18th February 2009, 19:00

Quote:

Originally Posted by Brabus E V12

We all know what our corrupt to the core ministers would have done! No point in wasting space for those idiots.

But anyways what the Swedish Minister has said is very relevant. There is no point in ploughing money into a depreciating asset. I am quite amused how the American Govt is going on giving billions in aid to Ford and Chrysler. Why would you need more money to cut costs?
You have to let them crash and re-start. It may spell the end of a few marques but then thats how industries function. Ploughing more money into them will only make it worse.

From what I understand, the money was given to GM and Chrylser at least to stop the company from shutting down. They basically didnt have any money and needed this emergency influx of cash to just continue doing their business while they cut costs. Cutting costs cant happen overnight. It will take at least a few months for the results to show.

devarshi84 · 18th February 2009, 20:16

Saab can only have a future in two ways.

GM gives them some money. They keep going in Europe and start cutting down elsewhere generating money enough to sustain for now.

Some big company buys them out and keep them in production.

rranjith_kum · 18th February 2009, 20:59

Its really sad to know but I never liked the looks of most of the Saab models !!
looks like the sweden govt wants to spend their money very judiciously

ImmortalZ · 18th February 2009, 21:20

The big three got into this mess entirely because of themselves. They didn't change with the times and listen to what the market wanted and when the economy plummeted, they just blew up.

Let 'em die.

Maybe three better, leaner, meaner companies who listen to their customers will rise up from the ashes.

Brabus E V12 · 18th February 2009, 21:28

@ ImmortalZ: I agree, we should let them die. The whole system will reset itself.

With SAAB, I guess they will either be bought out or become the first victim of the recession to actually shut shop. The others are still managing to hang by the thread, but the future does look bleak for SAAB.

I wonder where's our SAAB fan Dippen?

Nikhilb2008 · 18th February 2009, 21:35

While I agree with both of you, I cant help but look at the big picture. Millions of people will be out of jobs the world over. That really cannot be a good situation whichever way you look at it. It will lead to a chain reaction which will push the world deeper into recession.

SS-Traveller · 18th February 2009, 21:47

Quote:

Originally Posted by devarshi84

Some big company buys them out and keep them in production.

Ratan Tata or Vijay Mallya heard about this yet? Maybe Rahul Bajaj or Anand Mahindra?

Nitin · 18th February 2009, 22:53

Thats a shame. I hope something good works out for SAAB soon. I'm not a big fan of their cars when it comes to styling,but they do make quality cars.

Brabus E V12 · 19th February 2009, 01:01

Quote:

Originally Posted by SS-Traveller

Ratan Tata or Vijay Mallya heard about this yet? Maybe Rahul Bajaj or Anand Mahindra?

In the current climate no one would be willing to buy a White Elephant. But let's see what happens in the next 10 days.

18th February 2009, 17:39	#1
Brabus E V12 BHPian Join Date: May 2008 Location: London/NewDelhi Posts: 392 Thanked: 56 Times	End of SAAB in 10 days? EDIT : Sold! This is interesting, Saab the Swedish carmaker owned by America's General Motors (GM), could go bust within ten days without an immediate injection of state aid, the US company warned last night. I am sad to hear this as I remember my Dad owned Saabs when we lived in Sweden. I just hope Volvo doesn't end up in the same situation. :-( GM said that Saab was losing so much money so quickly that, without government intervention to secure its future, the subsidiary could be forced to file for reorganisation by the end of this month. But this morning, the Swedish Government appeared to rule out the prospect of state support in the interim period. “The Swedish state and taxpayers in Sweden will not own car factories,” Maud Olofsson, the industry minister, said. “Sometimes you get the impression that this is a small, small company but it is the world’s biggest automaker so we have a right to make demands.” "When I see that Saab has been running at a loss for so many years it would be irresponsible for me to stand here and say, sure, we are going to use the taxpayers' money in this way. I don't think I was elected to do that," she said. Source: Saab may go bust in 10 days, warns GM - Times Online
	() Thanks

18th February 2009, 18:23	#5
pranavt Senior - BHPian Join Date: May 2008 Location: Mumbai Posts: 1,682 Thanked: 641 Times View My Garage	Wonder how that is relevant to the thread in any way...
	() Thanks

18th February 2009, 18:51	#6
Brabus E V12 BHPian Join Date: May 2008 Location: London/NewDelhi Posts: 392 Thanked: 56 Times	We all know what our corrupt to the core ministers would have done! No point in wasting space for those idiots. But anyways what the Swedish Minister has said is very relevant. There is no point in ploughing money into a depreciating asset. I am quite amused how the American Govt is going on giving billions in aid to Ford and Chrysler. Why would you need more money to cut costs? You have to let them crash and re-start. It may spell the end of a few marques but then thats how industries function. Ploughing more money into them will only make it worse.
	() Thanks

18th February 2009, 20:16	#8
devarshi84 Senior - BHPian Join Date: Jun 2005 Location: Ahmedabad - Tor Posts: 4,024 Thanked: 211 Times View My Garage	Saab can only have a future in two ways. GM gives them some money. They keep going in Europe and start cutting down elsewhere generating money enough to sustain for now. Some big company buys them out and keep them in production.
	() Thanks

18th February 2009, 20:59	#9
rranjith_kum BHPian Join Date: Aug 2006 Location: Coimbatore/ Aachen Posts: 693 Thanked: 20 Times View My Garage	Its really sad to know but I never liked the looks of most of the Saab models !! looks like the sweden govt wants to spend their money very judiciously
	() Thanks

18th February 2009, 21:20	#10
ImmortalZ Senior - BHPian Join Date: Jan 2008 Location: Trivandrum Posts: 2,179 Thanked: 488 Times View My Garage	The big three got into this mess entirely because of themselves. They didn't change with the times and listen to what the market wanted and when the economy plummeted, they just blew up. Let 'em die. Maybe three better, leaner, meaner companies who listen to their customers will rise up from the ashes.
	() Thanks

18th February 2009, 21:28	#11
Brabus E V12 BHPian Join Date: May 2008 Location: London/NewDelhi Posts: 392 Thanked: 56 Times	@ ImmortalZ: I agree, we should let them die. The whole system will reset itself. With SAAB, I guess they will either be bought out or become the first victim of the recession to actually shut shop. The others are still managing to hang by the thread, but the future does look bleak for SAAB. I wonder where's our SAAB fan Dippen?
	() Thanks

18th February 2009, 21:35	#12
Nikhilb2008 Distinguished - BHPian Join Date: Jul 2006 Location: Bangalore Posts: 5,196 Thanked: 10,138 Times	While I agree with both of you, I cant help but look at the big picture. Millions of people will be out of jobs the world over. That really cannot be a good situation whichever way you look at it. It will lead to a chain reaction which will push the world deeper into recession.
	() Thanks

18th February 2009, 22:53	#14
Nitin Senior - BHPian Join Date: May 2006 Location: Houston, Texas Posts: 3,294 Thanked: 20 Times View My Garage	Thats a shame. I hope something good works out for SAAB soon. I'm not a big fan of their cars when it comes to styling,but they do make quality cars.
	() Thanks