04 May 2011

Sinking Saab

If you click on 'Brand Sweden' to your right, there you will find an article I wrote "Can Saab Survive?" I really could not see it lasting long, and felt surprised that anyone would risk money with it. Well now suppliers are not getting paid and withholding stock until they do. Saab's are getting back in production again by raising more capital. To do so, Spyker sold a 30% stake to Chinese firm Hawtai in return for sharing manufacturing and technology. Hawtai make a couple of medium sized cars and Hyundai SUVs. They have been using Hyundai technology but this seems to have ended in 2010. Getting hold of Saab technologies could be a boon for them.

Does this mean that Saab may eventually become the same as MG Rover, uplifted and moved to China? That would be its only hope as I see it. The car industry has too many brands and Saab has product that is off the pace. I feel for the uncertainty the workers must be feeling, but things do not look good for them.

In summary: Another lift and shift to China is on the cards here.

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