Report: Genii-Ecclestone to Offer $1 For Saab

Report: Genii-Ecclestone to Offer $1 For Saab

What’s Swedish automaker Saab worth? According to some reports, just $1.

Recent rumors have suggested that a partnership between Genii Capital, Formula One boss Bernie Ecclestone and Swedish businessman Lars Carlstrom will offer General Motors one hundred shinny pennies or the loss-making Swedish automaker, saving GM the cost of shutting it down. GM has already hired AlixPartners as a wind-down firm, but the cost of shuttering Saab could be as high as $145 million.

The well-backed group hopes to convince GM that it has a long term business plan for Saab.

And while gaining a dollar versus spending $145 million might seem like a practical solution, there are more factors involved as GM will most likely generate a significant amount of cash from the liquidation of Saab. On top of this, there’s a lot on the line for GM, with plenty of R&D spent developing the new 9-5 model. And while GM wants Saab on its feet, an overly competitive Saab using GM’s technology might create problems for America’s largest automaker down the road.

GM has repeatedly said it will shut down Saab but continues to leave the door open should any enticing offers arise.

[Source: FoxNews]