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I'm not sure that this necessarily follows. The car market is rather consolidated as it is, and this follows more from the type of product it makes than its size and whether it is growing or shrinking. Some capacity has to disappear, of course, but Saab has always been a niche manufacturer.

Anyway, I think that they could do OK on a model like Mini, by making one car and putting some effort in it instead of putting their brand on different crappy GM platforms.

by nanne (zwaerdenmaecker@gmail.com) on Fri Aug 21st, 2009 at 04:36:00 AM EST
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To reach profitability SAAB must increase their volume to levels they didn't even reach before the recession. They haven't made a profit in twenty years. During the last twenty years thet have constantly been subsidised by GM, and before that by truck and arms sales.

In the car industry someone must be culled, and SAAB is a prime candidate.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Fri Aug 21st, 2009 at 05:49:38 AM EST
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The last 20 years coincide perfectly with the period of GM ownership and the resulting poor management decisions.

What Saab would need to do is look on the long term and start developing its own customised platform again instead of making somewhat fancier Opel Vectras and Insignias with poor finishing.

Besides, Saab doesn't have the capacity that needs to be cut. They only make 100,000 cars a year, and that's a target they could stick to, getting profitability by better pricing for cars with a higher standard.

by nanne (zwaerdenmaecker@gmail.com) on Fri Aug 21st, 2009 at 06:52:11 AM EST
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The company didn't make money before GM either. It was supported by the truck and arms manufacturing which has since been spun off. The Wallenbergs couldn't be happier, they got to keep the family silver while dumping the autos on the unsuspecting Americans.

100.000 cars is not enough at the prices they take today. They need 150.000-200.000 and they won't get that. The alternative is raising prices, but there's no way anyone would choose a SAAB when they could get a Lexus, BMW or Mercedes for the same price. No way.

There is a huge global overcapacity and competition is razorsharp. The herd will be culled.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Fri Aug 21st, 2009 at 02:46:38 PM EST
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