Saab Is Saved.

24th June 09 - Saab is saved

Saab, the quality and stylish car manufacturer, appears to have emerged from the chicane of the Swedish version on the US’s Chapter 11 bankruptcy. It is a case of how David caged Goliath. Saab sold 93,000 of its flying-machine cars in 2008 and is particularly popular in the UK with those wanting something a bit different. Its rescuer is a bit different. Koenigsegg, a fellow Swedish car maker, turns out just 18 models a year and employs 45 people but that has not prevented it forming a syndicate to rescue the hairy beast. The majority of the financial banking for the deal will come from a $600m commitment by the European Investment Bank and guaranteed by the Swedish Government.

Saab has been owned by the US behemoth General Motors since 1990 but has only rarely made a profit. To pull Saab out of its enforced bankruptcy, GM is providing plant, technology and vehicle architecture. It is all part of what is looking like an increasingly successful break up of GM following its time-pressurised retrenchment. As detailed in this diary at the time, the European arm (including the profitable UK Vauxhall marquee) has gone to a strange mixture of Canadian and Russian interests, and in the US itself, Hummer and Saturn have been sold on. There is still time for someone to pick up the iconic Pontiac (that is the car that the bad guys are catching up in during that thrilling motor chase).

Yesterday we lamented over the loss of UK jobs. If this deal goes through, it will save about 3,400 employees directly and probably about twice that number indirectly. It’s all somewhat like the death of a close family member, a surprise marriage break-up, an enforced career change and perhaps even a house move. Stressful and rotten at the time, anger and resentment later but eventually all for the best. Good luck you Swedes. May your different cars and your new models succeed.