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]
With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.
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