With all the turmoil surrounding Trollhattan’s idle factory, rumors are circulating that China may be the final piece of SAAB’s financial puzzle.
It’s getting more and more probable that a solution to Saab cash crunch may be in China. Already in October of last year, reports came in telling us that Saab was in contact with automaker in Asia about selling technology. This became even more relevant three weeks ago when we became aware that Saab was running into financial troubles. The Chinese connection was in the beginning believed to be funding for the long-term, but the recent crisis must have speed up the process or changed the perspective somewhat. Now the Chinese connection is even mentioned as a solution to the short-term financial problems. —Life with Saab
SAAB does have technological knowledge to sell. They also have several new models in the wings including the 9-4x, 9-5 SportCombi, and the new 9-3. So, the company does have some positive future value. But it’s going to take a lot of cash to bring these models to market. Who would have the money and be willing to invest it in a struggling company?
Western media have been keen to finger Geely as possible saviors for yet another troubled Swedish brand. The Hangzhou based company did take over Volvo, which was the first successful case of a Chinese automotive company taking over a mature established car company, but for Geely to take over Saab as well would certainly be a bridge too far. When Geely bought Volvo, Volvo was actually only slightly in the red and was well on its way to becoming a profitable company again, a stark contrast to Saab which could be at best considered a lost cause. The company has taken on massive debts and the turmoil surrounding the company will have a knock on effect on consumers – nobody wants to buy from a dying company, especially a big ticket item such as an automobile. —China Car Times
These are harsh words for SAAB fans to read. But the truth is that the company needs someone with very deep pockets and the patience to continue investing for several years. What company is capable of that? We shall see.