The End of Saab?
The financial crisis seems to have hit everyone quite equally. While many automotive factories are still suffering, Saab has been having to deal with quite a few problems in recent days to try and alleviate a great deal of debt.
With so many different ways to raise their finances many have had to shut down plants and layoff thousands of workers worldwide in order to stay afloat. Saab seems to be looking for a similar as it is trying to sell of its property in Sweden.
Having been made idle in March the factory employs 2,000 workers and has been faced with a great deal of arduous tasks ahead. Having severed it’s ties with its owner GM, it appears that the company has had to deal with a great deal on its own, and sales don’t appear to be very steady. With the great purchase at the high of GM’s power in Europe, the now dwindling US company cannot assist the European automotive giant.
With current debt at nearly £29 million owed to its many suppliers. Now the European Investment bank has placed impediments to raise the funds through the property development practically because of new regulation techniques brought about after the financial crisis.
The main problem seems to rest in the car the company currently offers. The niche that it currently rests in is unlike that of Mercedes and BMW who have a larger selection of cars to offer. Saab in many ways cannot produce as many high end models such as Bentley or Porsche, but it also is not capable of producing a large amount of low cost cars that Honda does. Ultimately it is in an uncomfortable position and indeed may be at its end, not dissimilar to Rove, in the 21st century.