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if this investment group in Conneticut might be able to inject enough capital to find legs for the company again?
Chinese ownership has 1 huge advantage: immediate access to the huge Chinese market. But it comes with some significant downsides (particularly if the sale is at a bargain price) imho, including:
- degradation of the brand image (though not paying suppliers was a disaster for that image, never mind shutting down production for the better part of a year!)
- significant chance of technology absorption into China, then cessation of the more expensive development site (Trollhatten). Pangda doesn't build cars + Youngman is not a top tier auto manufacturer in China, so they are imho grasping at any cheap opportunity to compete. Geely already has Volvo, a competing brand... do you think they would buy SAAB now and not just merge the technology of the smaller brand into the larger?
- certain to influence the products developed, such that they may suit the Chinese marketplace, but probably don't make a lot of sense for the SAAB brand (eg the huge SUV and bigger than 9-5 sedan proposed)... SAAB needs focus right now, not project dilution...
I don't want to bash VM. That said, the supply problem should have been addressed sooner. Paying suppliers on time to ensure stable credit terms is business 101 + they can't afford to miss on stuff like that. As JAJ noted, they could see there was a top line problem, but at that time, VM was out peddling the brand (and 9-2 sketches) at auto shows, when probably the #1 thing both of them needed to do was to find venture capital. SAAB is a start up. That is the CEO's prime role in a startup! secure enough venture capital for viability... now is not too late, but it is late enough to have been enormously damaging + costly, imho somewhat unnecessarily... but it is easy to criticize from the sidelines... they have probably all worked very hard + I believe with the best intentions... so as I said, I do not mean to bash VM.
James...
posted by 67.158.6...
, Fri, 21 Oct 2011 09:43:31, Sat, 22 Oct 2011 08:04:40, Sat, 22 Oct 2011 17:51:21
, Thu, 20 Oct 2011 19:31:32
, Thu, 20 Oct 2011 17:57:38, Fri, 21 Oct 2011 11:15:42, Fri, 21 Oct 2011 11:24:47, Thu, 20 Oct 2011 15:10:00
, Thu, 20 Oct 2011 13:33:54, Thu, 20 Oct 2011 22:16:00
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