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Saab sells some assets to BAIC
Will this cash infusion help GM sell the brand?
Saab's future continues its roller coaster ride by securing some much-needed funds...by selling a portion of their assets.
Let's start with a quick review. Right now, GM still owns Saab. Spyker is now the front-runner to buy Saab after the deal with Koenigsegg fell apart.
Saab has sold the rights to the current 9-5 and some technologies from the 9-3 to Beijing Automotive Industry Holdings Co. (BAIC). According to Saab, the new 9-5 is not part of this deal. What is included is the current 9-5's tooling, which BAIC will move to China. Saab will continue to produce the current 9-3 under its new owner, whoever that may be.
To the dedicated Saab fan, this deal may not add up. Why sell the rights to vehicles that make up Saab's core brand? Unfortunately, that brand is a bit tarnished. Saab desperately needs new models. They are banking on the new 9-5 to lead the way. This cash infusion will not only help the company develop those new models but I think it will help the company look more attractive to a potential buyer. More cash in Saab's bank means less out of a new buyer's pocket.
CNBC: Koenigsegg deal to buy Saab crumbles
UPDATE
Apparently GM still has hopes of finding a buyer for Saab.
"I talked to GM last night and my impression is that they have not given up hope," Joran Hagglund, state secretary at Sweden's Industry Ministry.
On Tuesday, the Swedish government ruled out offering any bailout cash to Saab. Time will tell but referring to my tweet yesterday, I think we may be seeing the end of Saab.
BREAKING NEWS
CNBC is reporting this morning that the deal that has been in the works since June for Koenigsegg to buy Saab has failed.
Koenigsegg decided to pull out of the deal which, of course, brings into question Saab's viability. Saab vehicle sales have dropped 61.5 percent this year with only 7,400 cars sold in the United States.
When this deal was announced, I thought this was an unlikely pair. Why would a small, boutique manufacturer like Koenigsegg take over a much larger company like Saab? Other than they are both Swedish-based, it didn't make any sense. I think most enthusiasts would agree that Koenigsegg should stick with what they know best and that's making high-performance exotics. Maybe Koenigsegg's management thought the same.
Do you think this is the end for Saab? It doesn't seem likely that GM will do anything to keep the make afloat. They have enough problems of their own to worry about.
Which brand should General Motors keep?
Survey says...Pontiac!
Unfortunately, General Motors may be making a big mistake. According to Advertising Age, a survey recently completed by CarGurus asked potential car buyers which GM brand they would like to see survive the cuts. They chose Pontiac.
The survey had almost 1,700 respondents, with 44% naming Pontiac, 27% choosing Hummer, 20% selecting Saab and only 9% picking Saturn. Now the respondents picking Pontiac really isn't a stretch. Pontiac is known as GM's performance brand, dating back to the birth of the muscle car era in the '60s.
Now the rest of the survey results are a bit confusing. Second after Pontiac is Hummer. Maybe Sichuan Tengzhong, the Chinese company negotiating to purchase Hummer, knows something we don't. The goal, of course, is for GM to get rid of a brand that just isn't profitable anymore. The Chinese company sounds willing to put up the cash to keep Hummer afloat. This should be interesting.
Performance can be efficient
MINI's John Cooper Works edition bolsters our belief in small car fun
Yes, gas is expensive. One result? High-performance cars are picked on, frowned upon as unnecessary and gas-guzzling. But if you can turbo- or supercharge a four-cylinder, tuning it for horsepower and efficiency, what's the harm in that?
Hopefully none. BMW's MINI brand, since its introduction in 2001, has supported our belief that small efficient cars can be fun and fast. The new John Cooper Works version benefits from a larger version turbocharger, developing 211 horsepower and 192 lb-ft of torque from the base 1.6 liter four-cylinder engine. If you employ the cars Overboost system, the available torque jumps to nearly 207 lb-ft.
As passionate drivers, MINI delivers what we need now. A car that is quick and entertaining, putting a huge grin on our faces as we hit our favorite twisty back road. But when you need it to be, the MINI is efficient, sipping gas at a wallet-loving 40mpg.
And the MINI isn't the only model line available that offers performance and efficiency. There are many others, with auto makers producing small cars that are not only miserly but carry a nice punch.
- Here's a quick list of a few more cars that are fun yet easy at the pump.
- Mazda MX-5
MPG: 21 city/28 highway
0-60: 6.5 seconds - Pontiac Solstice GXP
MPG: 19 city/28 highway
0-60: 5.5 seconds - Nissan 350Z
MPG: 18 city/25 highway
0-60: 5.3 seconds - BMW 135i
MPG: 17 city/25 highway
0-60: 4.8 seconds - Lotus Elise
MPG: 20 city/26 highway
0-60: 4.6 seconds - Honda S2000
MPG: 18 city/25 highway
0-60: 5.3 seconds - Chevrolet Cobalt SS
MPG: 22 city/30 highway
0-60: 5.5 seconds
Can you think of any other quick, fun-to-drive small cars that will help you out at the pump when it needs to? Disagree with my list? Let me know. Give me your feedback. I want to hear from you.
