Saturday, November 14, 2009

David buys Goliath

News came through yesterday that the specialist, high-value, low-volume Swedish car maker Koenigsegg is to buy the family-orientated, generic-platformed, ‘high’-volume Saab.

To be fair, at under 100,000 units per year, Saab on its own is not a big manufacturer. It may even produce fewer cars than Rover did before BMW offloaded them. However, it still represents a very odd business plan. Koenigsegg produced only double figures last year, and while they do make great cars, they certainly don’t have the experience of a a mass producer.

Apparently, as part of the proposed sale, GM will continue to provide Saab with ‘architecture’ and powertrain technology during a ‘defined time period’. Saab plans to produce its next generation 9-5 models in its production facility in Trollhättan, Sweden.

“The proposed agreement will enable us to maximize the brand’s potential through an exciting new product line-up with a distinctly Swedish character. Today’s announcement is great news for Saab’s current and future customers, dealers, suppliers and employees around the globe, said Jan Ake Jonsson, Managing Director of Saab Automobile AB.


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