A Farewell to Saab

Moneybox
A blog about business and economics.
Dec. 19 2011 10:03 AM

End Of The Road For Saab Automotive

136080259
A Saab logo is pictured on a car at a Saab shop in Nieuwegein on December 19, 2011 .

Photo by ROBIN UTRECHT/AFP/Getty Images

Long-troubled Swedish automaker Saab looks set to throw in the towel with a bankruptcy filing announced today after General Motors vetoed a sale of the firm to Chinese investors.

For some time, Saab had been owned and operated as a money-losing subsidiary of General Motors. Then when the global automobile industry went into a tailspin in 2008-2009, GM sought to divest itself of the company. There was a push in Sweden at the time for some form of bailout, but none was forthcoming from a Swedish government which (wisely in my view) embarked on a massive campaign of monetary, fiscal, and credit expansion rather than focusing on specific firms. That left Saab in the hands of Swedish Automobile which, somewhat confusingly, is actually Dutch company primarily known for producing the Spyker Squadron race car. Swedish Automobile couldn't make money building Saabs either, and was in the middle of an effort to sell the brand to some Chinese autoparts makers eager to move up-market. But GM retained veto power over any such move, in part because key Saab vehicles contained GM-owned intellectual property. GM is concerned that if the IP shifts to Chinese control it'll spread unabated and, I think, simply has no desire to face additional competition in the China market.

Advertisement

The fact that a company is filing for bankruptcy doesn't mean it'll never be heard from again, but in this case that seems to be the most likely outcome—there are simply no options left for an automaker that's far too small to survive in the contemporary global market. Note, however, that Saab Automobile hasn't been owned by its original parent company Saab A.B. for over twenty years. That firm, which is primarily involvedin aerospace and related military applications (this popular light anti-tank missile, for example) is still very much alive and well.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

TODAY IN SLATE

Politics

Smash and Grab

Will competitive Senate contests in Kansas and South Dakota lead to more late-breaking races in future elections?

Stop Panicking. America Is Now in Very Good Shape to Respond to the Ebola Crisis.

The 2014 Kansas City Royals Show the Value of Building a Mediocre Baseball Team

The GOP Won’t Win Any Black Votes With Its New “Willie Horton” Ad

Sleater-Kinney Was Once America’s Best Rock Band

Can it be again?

Technocracy

Forget Oculus Rift

This $25 cardboard box turns your phone into an incredibly fun virtual reality experience.

One of Putin’s Favorite Oligarchs Wants to Start an Orthodox Christian Fox News

These Companies in Japan Are More Than 1,000 Years Old

Trending News Channel
Oct. 20 2014 6:17 PM Watch Flashes of Lightning Created in a Lab  
  News & Politics
Politics
Oct. 20 2014 8:14 PM You Should Be Optimistic About Ebola Don’t panic. Here are all the signs that the U.S. is containing the disease.
  Business
Moneybox
Oct. 20 2014 7:23 PM Chipotle’s Magical Burrito Empire Keeps Growing, Might Be Slowing
  Life
Dear Prudence
Oct. 21 2014 9:18 AM Oh, Boy Prudie counsels a letter writer whose sister dresses her 4-year-old son in pink tutus.
  Double X
The XX Factor
Oct. 20 2014 6:17 PM I Am 25. I Don't Work at Facebook. My Doctors Want Me to Freeze My Eggs.
  Slate Plus
Tv Club
Oct. 20 2014 7:15 AM The Slate Doctor Who Podcast: Episode 9 A spoiler-filled discussion of "Flatline."
  Arts
Brow Beat
Oct. 21 2014 9:25 AM The Brilliant Fake Novels of Listen Up Philip
  Technology
Future Tense
Oct. 21 2014 9:39 AM The International-Student Revolving Door Foreign students shouldn’t have to prove they’ll go home after graduating to get a visa.
  Health & Science
Bad Astronomy
Oct. 21 2014 7:00 AM Watch the Moon Eat the Sun: The Partial Solar Eclipse on Thursday, Oct. 23
  Sports
Sports Nut
Oct. 20 2014 5:09 PM Keepaway, on Three. Ready—Break! On his record-breaking touchdown pass, Peyton Manning couldn’t even leave the celebration to chance.