Saab: Fiat Backs Down, Merbanco Steps In

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The Saab sad story continues but, as we got used to by now, not with official developments, but with rumors coming from inside sources. Even if the Swedish company has not yet named any of its suitors, according to a Financial Times report, a little known Wyoming based investor group called Merbanco is in the race for Saab's hand.

Along side Merbanco, Swedish manufacturer Koenigsegg and U.S. Renco Group battle for the same goal. According to the same source, the winner for GM's last standing bad brand will be named this week.

Terms of the deal are pretty much as follows: GM would provide $500 million in assets and cash, including production equipment for a future Saab model. The $150 million in Saab's accounts will also go to the highest bidder. In turn, the winner of the bid will have to pay back the money offered by GM, if the company is spun around.

As for the Italian Fiat, it says it no longer has any interest in taking over Saab. According to Sergio Marchionne, there can be no Saab without Opel in his mind and plans.

"The work on Saab was linked to Opel, taking into account that the technical input all came from Opel. Saab doesn't stand up on its own, thus the possibility of something happening for Fiat is minimal," Marchionne was quoted as saying by Autonews.

Saab on the other hand said it has enough money to survive until it has a new owner. The manufacturer is now operating under the cover of the $150 million in its accounts. "We will have enough to pay salaries and suppliers, to keep operations going until we get out of reconstruction," a spokesman for the company said a few days ago.

filed under: Merbanco Saab Fiat Koenigsegg Renco Group GM

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On 10 June 2009 at 17:31 UTC, Sylvain Giguere said:

It really takes a poor guy to treat Saab of "last GM bad brand".. Probably never drove one. My Saabs have been just as reliable as my previous Honda, and much more than my VW Golf.. I've put over 400k miles, trouble free on my 1990 Saab SPG, and I'm over 100k miles on my actual 9-5 without any other maintenance than oil changes. Long life to Saab.

On 11 June 2009 at 02:00 UTC, Daniel Patrascu said:

The "poor guy" you are talking about is GM. If you haven't been watching the story, a few months ago the American manufacturer divided its assets into "good" and "bad". Saab was placed in the "bad" corner, together with Hummer and Saturn but even so, GM does not say the cars per se are bad, but the brand itself (talking here especially about sales). I too hope Saab makes it, regardless of who its future owner will be.

On 22 December 2009 at 15:18 UTC, 30yr vet said:

I've driven every SAAB model from the first 900 to the 95. Always a good solid drive with most given to other family members at more than 150 miles. GM's influence hurt the brand. If only they had left the SAAB engineers alone.