SAIC May Invest in Saab

By Brendan Moore

09.08.2009

SAIC logoReports out of both Sweden and China indicate that SAIC is considering an investment in the next iteration of Saab.

Sources say the Chinese auto company would pick up the current $420 million USD “gap” that exists in Koenigsegg’s plan to purchase Saab from General Motors. SAIC would consider the investment a passive one as opposed to a partnership that produces cooperation among the auto production units of the two companies, and with that in mind, would have the investment held by the parent company of SAIC, as opposed to the auto manufacturing arm of SAIC.

SAIC is one of GM’s largest Chinese auto partners.

However, the painful legacy of SAIC’s money-losing investment in South Korea’s Ssangyong Motors is giving SAIC pause in terms of taking the plunge on the money-losing Saab, so it is difficult to gauge how far along SAIC is in their decision process concerning a stake in Saab.

SAIC refused to comment on the Saab reports.

Koenigsegg, the tiny specialty Swedish supercar manufacturer, finalized terms of an agreement with GM in August to purchase the much-larger Saab, but has had some trouble lining up all the required financing for the deal.

GM sold Saab to Koenigsegg for a still-undisclosed price and expects the deal will close by the end of this year.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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4 Comments

  1. It could be interesting to imagine a possible “what if” scenario: if SAIC decided to step back and don’t go after SAIC, leaving the field open to Renault (Renault was once interested to Saab around 2005 from what I read on the following French forum http://www.forum-auto.com/automobile-pratique/section1/sujet266271.htm ), Fiat (if they don’t get Opel, Saab could be a good consolation prize) and Tata (however in the case of Tata, they had some difficulties of digestion with Jaguar and Land Rover, maybe they aren’t ready to step in for Saab)

  2. “…don’t go after SAIC”

    I mean don’t go after Saab, sorry for the typo ^^;

  3. Passive investment, right. For how long? Long enough to see if Saab can make some money, and if so, they’ll jump in there with both feet.

  4. There is no way SAAB can make any money. Most likely it will be glorious history like Pontiac. All they can make are rebadged Opels (read Chevies).

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