GM dumps Saab

Newswheel staff :: 12 October 2005 :: Filed under Saab, Subaru, Europe & UK, US

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No more Saabarus!

GM is planning to offload its 20 per cent holding in Subaru’s parent company, Fuji Heavy Industries. And you know what that means, don’t you? No more Saabarus. Say it ain’t so!

Just under half of GM’s holding in Subaru (around 8.7 per cent) will be bought by Toyota, the remainder going to Fuji itself in a buy-back scheme. The deal is expected generate $360 million for GM, which is:
   1. A drop in ocean in the context of the billion dollar quarterly losses GM has achieved recently.
   2. Around half of what GM paid for its 20 per cent stake six years ago.
   3. A fairly predictable outcome for the hilariously hapless GM.

No new Saabarus?
However, whether it’s a good thing for GM’s beleaguered premium Euro brand, Saab, is hard to tell. Some of Saab’s current and future product line-up is heavily based on Subaru technology. While the Swedish outfit has conceded that the Impreza-based Saab 9-2X (sold only in North America) was a mistake, the loss of the 9-6X project (a rebodied Subaru Tribeca B9) leaves Saab without product in the lucrative mid-sized SUV sector. Given GM’s dwindling resources, it’s hard to see where a replacement donor vehicle will come from (although it’s just possible Daewoo could come to the rescue with its impressive looking new compact 4x4, upon which Opel is basing the next Frontera).

Although Toyota’s 8.7 per cent holding in Subaru won’t buy it a board member, speculation regarding the Japanese giant’s intentions with its smaller sibling has already kicked off. Perhaps Toyotas will be built in Subaru’s factories, a possibility that has already been discussed according to Subaru head honcho Kyoji Takenaka. Or maybe it’s Fuji Industries’ quick-charge lithium-ion batteries Toyota is after for its aggressive push into hybrid technology…

And one more thing…
Apparently, Saab may have a future after all. According to AutoIndustry.co.uk, the Renault/Nissan alliance wants a premium brand for Europe. Volvo was they brand they went after, but owner Ford wasn’t selling. However, Saab could fit the bill…

Saab 9-2X: No more of these, huzzah!

Subaru Tribeca B9: But no more access for Saab to these, hazoo…

Linkage:
AutoIndustry.co.uk reveals that Renault/Nissan tried to buy Volvo and may now bag Saab