The newly formed Saab Spyker Automobiles faces a huge struggle to survive, according to Fiat boss Sergio Marchionne.
“I like the Saab brand,” Marchionne said a few hours before Spyker's deal to buy Saab was confirmed. “I think it’s very difficult to be a niche player and profitable. Marginal players will continue to be marginalized. We cannot build on hopes and dreams."
Asked about Marchionne's comments, Spyker boss Victor Muller (pictured) said: ""We have a lot of work to do. Mr Marchionne is entitled to his opinion, and it is up to prove him wrong."
John Smith, GM vice president for corporate planning and alliances, added that GM will continue to be heavily involved in the new Saab, including building the new 9-4X crossover in Mexico and providing powertrains and engineering expertise.
"We want to see a strong Saab," Smith said.
Last year, Marchionne included an offer for Saab as part of Fiat's bid for Opel, claiming that he could see potential synergies between Lancia and Saab. Fiat also bid for Saab in 1989 but was beaten by GM.
Since Spyker was revived in 2000 it has not made a profit. Saab, meanwhile, has lost money for GM over the past decade.
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Re: Fiat boss: 'Saab will still struggle'
Interesting that some here mentioned that Apple turned their business around by selling an 'external' product which boosted their sales and saved the company. I like that because it is true.
This is where I see SAAB going. Saab will become a ultimately a component developer who will be called in by other manufacturers to help develop Architectures, Safety systems, Turbo-charging, Gear boxes. If Porsche and Subaru don't have a problem calling SAAB in to help develop a Boxer Diesel with them, then I think other manufactures will be interested in paying for SAAB's engineering skills in not just the above mentions areas but others too. As long as it isn't leaked to the press then I think SAAB will be working quite happily in the background and get to use those products too.
Gm will be very much interested in keeping SAAB on tap for future products. So if you want to compare SAAB Gearboxes and engine management systems being sold to other manufacturers to Apple selling iPODs then I can see the similarities.
Who knows maybe we might even see new Wind Turbines with SAAB written on the side of them....?
Re: Fiat boss: 'Saab will still struggle'
Well he may well run a real multinational car company for his day job, but that doesn't mean he knows any more than the armchair followers on internet forums.
I am actually stunned that this deal went ahead. This spells out the reality of the business involved: http://www.google.com/hostednews/canadianpress/article/ALeqM5jtF3BmLeiHP7t9fRq4wt-b27Tnvg
Everyone likes Saab and their cars, but I think this is just going to delay the inevitable for a few years until Spyker runs out of money and the next visionary lunatic jumps into the driving seat.
Re: Fiat boss: 'Saab will still struggle'
erm i think you'll find Marchoinne has already shown he has what it takes to run a car company, he took over in June 04, Fiat was a laughing stock, 4th Qtr of 2005 Marchoinne guided FGA to its first profit in 17 quarters, since then in 2007 Fiat Group made an operating profit of €3.1bn, in 2008 €2.9bn.
Fiats net industrial debt was REDUCED by €1.5bn in 2009!
Now tell me Marchoinne doesn't know what he is doing!
Marchoinne is one of the most highly respected CEOs out there, the man knows what he is talking about