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Follow the money
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Posted by Noel [Email] (more from Noel) on Sat, 6 Jun 2009 10:23:39 Share Post by Email
In Reply to: Please expain......, Red93SEInBrklyn, Fri, 5 Jun 2009 07:11:27
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It's a corporate imperative to do what's best for the company and it's shareholders. That's a fact of life. The view that drives that may be short or long term, but the objective is still the same, and it has to be pragmatic, not emotional thinking that guides it. I do consulting work with both very large companies and far smaller ones, and all have to make money and get a return on investment. So they follow whatever path gets them there.

Like it or not, Saab has always been a brand that appealed to a relatively small slice of the population. It has had generally poor marketing support from GM, so the group it appealed to seemed to shrink or make other choices, such as Subarus, or jumped to other Euro makes like VW/audi, Volvo, etc. Now GM just has to get out of the deal with the most cash they can. Saab to them is just another brand which has some value they can get by selling it off.

Renco may see opportunity in acquiring a small, established brand with a loyal following, perhaps thinking they can bring it back, something which is certainly possible, with some strong marketing to rebuild the brand and product refinement. The global auto industry is sufficiently incestuous that Renco may be able to do deals with other companies for platform sharing to take advantage of some larger firms' economies of scale.

For now, I think it's better not to prejudge, and just go on enjoying the Saab(s) you have. There's really nothing any of us can do about it anyway.

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