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As noted by a few in comments, Autoblog have a piece on Saab setting up independently. That article (like many from Autoblog, especially lately) is based on an Automotive News report, which basically re-writes what we’ve been covering here for the last week or so.
General Motors is preparing to turn its Saab subsidiary into a separate business, a move that will make the struggling brand more attractive to potential buyers.
“Saab has been negotiating with GM and the Swedish government about becoming a more independent company, initially as part of GM,” a GM source said.
That means the Swedish carmaker would take control of its decision-making and finances, sources said.
That much we knew already.
What remains to be seen is just how independent they’ll become. The key is the movement of core functions back to Sweden, which Automotive News says is quite possible:
Paul Akerlund, head of Saab’s union, said: “Under this [plan], the Saab board will be more like a normal board, and less dependent on what happens on GM’s European strategy board. They will make their own decisions.”
GM will still be the owner, but Saab will have its own budget, Akerlund said.
Negotiations include how much money GM could give Saab to set up on its own.
Saab likely will move all of its operations back to Sweden, including research and development and design work, which is now done in Rüsselsheim, Germany.
To have R&D and design back in Sweden would be a total coup. I hope they’ve got some architects and builders set up in Gothenburg right now working on new design facilities (these designers are a finicky bunch 
).
I’d be negotating for Saab to get some of it’s own intellectual property back, too.
——
Those who were hoping for a Saab-Fiat merger might be feeling disappointed by this news:
Italian auto giant Fiat is in talks with struggling US group Chrysler on a strategic partnership as the industry reels from a collapse in demand while the global credit crunch bites, a report said on Monday.
“Fiat Group is in negotiations with Chrysler LLC to form a strategic partnership that could include a Fiat equity stake in the ailing US carmaker,” Automotive News Europe magazine said, citing informed sources.
The pact would help Chrysler speed up and strengthen its plans to relaunch, with Fiat giving the US company access to its mini-, small-, lower-medium and upper-medium platforms, engines and transmissions, the report said.
On that basis, Chrysler would be in position quickly to build a complete new range of front-wheel-drive, low-emission vehicles as the traditional US market for larger cars all but disappears.
Chrysler, which is openly seeking alliances and partnerships as it struggles to survive a sharp drop in demand in its home market, did not refute the report.
As much as I’d love to see Saab and Alfa Romeo under the one umbrella, I’ve never been sure that Fiat would be the right corporate parent for Saab. It might still happen a few years down the road, but I like the direction that Saab has an opportunity to head in right now.
15 responses so far ↓
1 Nico
// Jan 20, 2009 at 11:48 am
Hi Swade,
I guess this was expected:
“Porsche on Monday (1/19/09) offered the minimum price to buy the Swedish truck maker Scania in a takeover bid that was required when Porsche gained a majority stake in Volkswagen.
Porsche maintains that it does not intend to take control of Scania. It offered 67.1 Swedish kronor a share for Scania’s B-Class stock and 68.52 kronor for each A-Class share.”
I believe this values Scania at 2,95 Billion Euros.
What else will happen this week (Besides a new US president)
2 Tedjs
// Jan 20, 2009 at 1:25 pm
Interesting that the article also says that “Senior GM bosses are losing patience with Saab, which the company bought outright in 2000.” How can one lose patience with a company that has been so starved for product?
Has Honda ever (use sarcastic voice) “lost patience with Acura?” I think not.
GM mismanagement and mis-marketing and subsequent divorce of Saab (and the great experiment called Saturn) has been fascinating to watch over the past few months. The break up with Saturn still make take some doing – that is still a child of GM and without any global identity, it may still certainly vaporize.
And what else will happen this week? L O S T is back. Certainly a welcome diversion from this relentless deep freeze we continue to endure here in Ohio.
3 Kroum
// Jan 20, 2009 at 2:13 pm
Honestly, aside from Saab, I could care less about GM. If a few million are out of a job – well, tough luck. Go ask Putz and the Wagon guy what the hell happened.
I was in Detroit on Sunday and looking at the Saab stand it just struck me how GM just wasted an excellent opportunity. People were loving the 9-X Air concept while nobody even looked at the awfully dated-looking 9-5.
Then you have Audi, which now covers every niche imaginable and a few they invented. You can’t help but ask yourself – what the hell were GM management thinking!?
Good riddance. I’d rather see Saab die a proud death on its own than be raped and killed by General Psychopath Motors.
4 Karen
// Jan 20, 2009 at 3:28 pm
@Kroum – you should go see the film Defiance. Pretend the Germans are GM management.
This Fiat-Chrysler thing was on a few years ago. Makes no sense unless Fiat gets Chrysler for one dollar – ok, maybe a few more to get Jeep. or depreciated cost of assets. No one cares if Chrysler disappears.
Still does not exclude a potential Fiat-Saab deal. But an automous Saab (with sole corporate title at GM) based in Sweden could work while the global auto business endures the sales dropoff for one or two years.
5 Ken H
// Jan 20, 2009 at 5:39 pm
For Fiat it can only be Chrysler’s US network which is interesting. Absolutely nothing else.
6 Dippen
// Jan 20, 2009 at 6:42 pm
I am with Ken H, Fiat wants a presence on the US market so a tie up with Chrysler would be “logical”
7 ctm
// Jan 20, 2009 at 7:48 pm
For those who thought Investor should buy a stake in Saab… Investor posts a SEK 36 billion (USD 4.3 billion) loss for 2008…
8 Robin Capper
// Jan 20, 2009 at 7:58 pm
Fiat + Chrysler seems worse (for Fiat) than Fiat + GM. They won’t get out of this deal with a bundle of cash when it goes bad, will they?
9 fuzzi
// Jan 20, 2009 at 9:18 pm
incredible, Fiat and Chrysler ?
this will never work, look at Mercedes and Chrysler, billions were lost by Mercedes !
10 Adam
// Jan 20, 2009 at 9:24 pm
I don’t think Fiat is talking about buying Chrysler, just cooperating with Chrysler. I think that would be a win/win.
11 Mailr
// Jan 20, 2009 at 10:12 pm
Fiat has a history of licencing their designs, so selling licenses of their cars to Chrysler and getting access to their network seems like a reasonable thing to do. Similar to the Honda/Rover deal before BMW bought Rover. Especially if Chrysler goes under, they can just switch badges and keep selling the same cars with the same network. Or something like that.
I don’t think it will in any way impede a Fiat-Saab deal marketwise, except for the fact that it consumes additional resources.
12 Bernard
// Jan 20, 2009 at 11:02 pm
As Mailr wrote, Fiat is interested in licencing their designs, which Chrysler is desperately in need of.
Chrysler hasn’t had proper mainstream R&D in years, other than their minivans. The current 300 is based on a Mercedes design, and the previous (FWD) generation was based on an old Renault platform.
I think that Fiat is planing to use any equity that they get in Chrysler as a potential windfall when things get better. Same as they did with GM…
The irony in all of this is that Fiat’s large car platform (which would only be medium-sized in the US) is based on Saab’s cancelled 9-5 replacement from 7 years ago.
13 detroitsaab93
// Jan 21, 2009 at 12:19 am
Fiat SpA of Italy and Chrysler LLC and its owner Cerberus Capital Management LP announced plans Tuesday to establish a global alliance.
The deal will help ensure the Auburn Hills automaker’s viability by providing it with access to Fiat’s range of fuel-efficient small car platforms and engines, the two companies said in a joint statement.
Fiat in turn would receive an initial 35 percent equity interest in Chrysler, but it is not planning to make a cash investment in Chrysler or commit to funding the U.S. automaker in the future.
The rest of the article is here:
http://www.detnews.com/apps/pbcs.dll/article?AID=/20090120/AUTO01/901200389/1148
14 RMinNJ
// Jan 21, 2009 at 12:21 am
The Fiat/Chrysler deal was just announced today on NPR (national public radio) in the states.
My wife really really wanted an alfa when we graduated college. Unfortunately, based on one place to buy one and get them fixed, she
didn’t buy one…good thing, several months later they pulled out of the states.
Chrysler with sell a lot of them if they sell and
service them. May not sell too many next to
minivans though.
15 JOhn8
// Jun 1, 2009 at 7:42 am
Chrysler need to learn from Fiat that product quality is important.
In my country Fiat is just about to be recognized as a car with good/fair quality. They are still struggling with customers that remember older models that totally sucked. They where rust buckets that fell apart in 10 years time. Compare that to Mercedes and Volvo that lasts 20 to 21 years before they are scrapped.
During the last 5-7 years, Fiat’s quality has improved. Not just the cars, but their manufacturing technology has improved.
They are now selling more cars then they’ve done the last 20 years. Even in the so called recession.
Chrysler is now considered one of the brands with the worst quality. And the customers are not happy with the cars or their dealers.
BMW and Toyota is topping this list. They have the most pleased customers. BMW customers are totally pleased with the car and Toyota customers are totally pleased with the dealer. They have very loyal customers.
Chrysler need in improve quality and customer satisfaction. They should give 3-5 years guarantee on their cars – and improve quality as soon as possible.
Fiat could help them with the quality control.
If Chrysler is to make a Fiat model in the US… Fiat will make sure they are of the same quality as the European model.