Saab Bankruptcy: What Does It Really Mean?
December 19, 2011
And so the announcement came. Saab Automobile finally filed for bankruptcy, something it arguably should have done when General Motors gave up on the struggling brand two years ago.
In the bigger scheme of things, the saga about Saab Auto’s troubles — and the eccentric Dutchman Victor Muller’s creative but unfruitful attempts to rescue the company — is insignificant to say the least.
The company has been on life support the past nine months, and in the third quarter the company manufactured only 130 and sold 1,235 cars. Its assets are valued at a mere 3 billion Swedish kronor ($431 million), according to the bankruptcy filing.
In an attempt to highlight exactly how insignificant Saab Auto is, Sweden’s National Institute of Economic Research (NIER) concluded that the worth of Saab Auto’s production (including production value for its subcontractors) was about 3.1 billion kronor last year, representing 0.11% of Sweden’s total economic output. For most part of this year production has been halted, and now the figure is even closer to nothing.
Of course, the bankruptcy is a sad event for employees at Saab Auto and its subcontractors, but NIER noted that Saab’s production last year generated some 6,800 jobs in total, representing only 0.15% of Sweden’s total employment.
So why have media kept reporting about Saab Auto, one may rightfully ask? The reason is that somehow, this quirky little car brand with its few, but fiercely loyal enthusiasts, has been a source of great affection, nostalgia and Swedish nationalism.
According to an assessment made by Rüdiger Hossiep, a psychologist at Ruhr University Bochum, Saab owners have one of the highest level of psychological involvement with their Saab’s, being over ten times more passionate about their cars compared to the average Volkswagen driver. Just consider the passion for Saab displayed by American comedian Jerry Seinfeld.
Hence, for a precious few, the Saab bankruptcy is comparable to what many Apple fundamentalists would feel if Apple suddenly disappeared. Also, the story about Saab Auto is an illustrative and interesting example of Chinese ambitions to capitalize on the struggles of many Western firms — and U.S. resistance against this development.
Now, a bankruptcy isn’t all bad. Saab Auto’s assets and brand are likely to draw some attention from potential bidders and it’s not inconceivable that the bankruptcy process will reveal someone that is able to ensure some kind of future for the iconic car. Let’s just hope it won’t be another Victor Muller, who has been enthusiastic for sure, but has lacked perception of reality and necessary funds.
SAAB bankrupt
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SAAB bankrupt
- Golfmad
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Re: SAAB bankrupt
Like Volvo is also struggling to keep heads above water.... lets face it, they are boring dull cars with no soul, allbeit very safe, but boring....
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Re: SAAB bankrupt
SAABs were never very popular in South Africa - perhaps because the marque spells 'BAAS' backwards?
- Ron&Gill
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Re: SAAB bankrupt
The SAAB 900 turbo was iconic, though.
1964 T34 - The Razor: viewtopic.php?f=23&t=10290
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Re: SAAB bankrupt
A few years back the GF wanted a new car and thought she wanted something different, so we looked at Saabs, the 9-5. On the walk around, not to bad on the eye, the salesman just could not stop talking on how safe and great it is. On the test drive the GF drove first, ride was not bad, but it is ....snug inside. Did not feel too bad from the shotgun seat, but my turn to drive, oh boy, this thing can not get out of it's own way, no guts. The handling sucks, no feedback thru the steering, brakes are spongy. The fit and finish is so bad I could see the airbag thru the gap on the dash, the sunvisor came off in my hand. I drove to the Audi dealership across town, told the Saab salesman thanks but no thanks. We went home with a Audi A4, and have been happy since. Goodbye Saab, no tears shed, you will not be missed, and please take Volvo with you.
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Re: SAAB bankrupt
The Brits loved the SAAB. 1 thing that never ceased to amaze me though was the fact that 1 battled to find one at a scrap yard. They seemed bulletproof - ok, l know some may argue that the reason l couldn't spot them in the yard was due to not so many units sold, however every street, or so it seemed, had a SAAB.
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Re: SAAB bankrupt
does this affect Scania trucks too?
ANGRRR
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Re: SAAB bankrupt
I think the new Volvos are actually quite good. They look great!
That car reviewer friend of mine raved over new Volvos.
Pity about Saab
That car reviewer friend of mine raved over new Volvos.
Pity about Saab
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Re: SAAB bankrupt
If you feel like you have one foot in the grave ............. buy a Saab - it will complete the image !
who dat who say who der when I say who dat ?
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Re: SAAB bankrupt
Eers dog ek jy het verkeerd gespel: South African breweries sou 'n flippin groot verlies gewees het
Armand
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Re: SAAB bankrupt
The chings were very interested last year but the Sweedish goverment stepped in, bad decission, Saab will be no more, Volvo = Ford .... ? NO
For what it's worth, ignorance has no limits ......
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Re: SAAB bankrupt
No, Volvo is owned by Geely. A Chinese manufacturer.
Jaguar is owned by Tata.
Sad times
Jaguar is owned by Tata.
Sad times
"Great things are not accomplished by those who yield to trends and fads and popular opinion." Jack Kerouac
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Re: SAAB bankrupt
Screw the trucks, what about us taxpayers' Gripens??Tony Z wrote:does this affect Scania trucks too?
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Re: SAAB bankrupt
Scania trucks are now part of Volkswagen AG
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