Saab Bidders Down To Three

Whether they like it or not, GM is the position where it most likely has to sell the Saab brand for need of cash. I'm sure if they had their way, they'd let the brand just go bankrupt, especially considering yesterday's comments. The Saab buyer process is continuing, with a report claiming just 3 buyers (really 2) are left in the running to purchase the brand. Reports on how many bidders were interested of the brand have varied wildly. I've heard 20, I've heard a dozen, I've heard six. You never really do know for sure! 

A German bank, Chinese automaker Geely and ever-present Fiat are the rumored final bidders. The Göteborgs Tidning, a Swedish newspaper, is the author of this latest report. I'm much more inclined to trust reports out of Sweden's newspapers then conjecture by American sources.

According to the report, the Geely bid was pre-rejected by CEO Fritz Henderson due to fear of Chinese competition. In the words of the GM source: "The Chinese bid is finished, Henderson is afraid of competition”.  He doesn't want them to have that new 9-5! I actually agree with that sentiment totally; I think it's smart business sense to make sure it goes to someone that will at least have some connection with the future of GM (like Fiat).

Fiat is on an incredible expansion, with reports of company interest expressed in Opel, Saab as well as GM's South American operations. Incredible; Chrysler, Opel, Saab and GM South America? I'm afraid Fiat is overextending. Needless to say if Fiat attains it's goals, GM would have a vested stake in the company succeeding. That leads me to think GM is much more likely to sell Saab to Fiat than any of the other bidders. Geely's out so it's between Fiat and a German bank.

Saab has confirmed three bidders in the running, but not their identity. Geely insists it is not putting forth a bid, despite reports to the contrary and company executives spotted around Trollhattan. I assume they're just trying to save face from their pre-rejection. Saab's Guy Lofalk has confirmed that all of the remaining bidders have agreed to move production back to Sweden. GM had planned to build the car in Germany.

I would have preferred a Swedish owner but I guess that was always a longshot. With GM trying to get resolutions with it's brands Saab, Saturn and Hummer as soon as possible, these deals will be coming to a close soon.