Saab bankruptcy: Magna - Dongfeng and the ABC Parole

In Sweden the last few days have been quieter and there is more fog than ever before over the Saab future. In Trollhättan the hunt for the most competent Saab engineers has begun, and the circle closes. Combitech, formerly Saab-Scania Combitech, is looking for the new development site Trollhättan 200 engineers.

Back to the roots, in a sense, because the origin of the Saab factory is in aviation, and Combitech has been active in aerospace since 1983.

Of the possible Saab buyer Youngman was heard over the holidays nothing, only the state-controlled media of China reported on the last possible opportunity for the Chinese auto industry to acquire a car manufacturer with world renown. Such articles are not without reason in China and are an indication of possible activities.

In the meantime, a new bidder from the People's Republic has appeared for the Saab legacy. Dongfeng Motor Corporation, the third largest automaker in China, is interested in acquiring parts of Saab. It is unlikely that Dongfeng wants to revive the brand, because they are working on establishing their own label, and Saab know-how would be sold out at the right time.

Retired from the Saab circle of interests has meanwhile Pang Da. The largest car dealer in the world, even shaken by losses at the billion-dollar mark due to miscalculated leasing transactions, finally seals off the investment of 45 million euros.

One name that kept flashing during the holidays was Magna. However, even only with the Saab factory as a production location for OEM products, without own Saab production.

In order to facilitate a possible buyer, the supplier association CLEPA proposes a possible state subsidy according to the German model. A kind of short-time working allowance could hold valuable personnel, and the costs for investors would be more bearable. A good idea that was successfully practiced in Germany during the last crisis.

Incidentally, Victor Muller was also involved in negotiations during the Christmas holidays. He had not given up yet, he announced through the press. Maybe, but Muller is no longer a decision maker. Since the bankruptcy petition he accompanies the events in an advisory capacity. The bankruptcy trustee alone makes decisions.

The pressing question for us is who would like to continue the brand. The situation and intentions are not entirely clear, because not every speculator plays with open cards. Youngman is certainly the candidate who would like to continue Saab as a brand, as is the Turkish bidder. Magna maybe. Dongfeng doesn't. So much for the situation we know, with other unnamed parties in the running.

However, there will be no long wait this time. Time is short, and if there is no positive decision in the first two weeks of January, then all that matters is the Resterampe and the sale of some profitable parts and licenses. Each negotiating party has only one litter left, and it has to sit!

Another big player is in Detroit, and there is the final say on whether Saab production in Sweden will be running again in 2012. GM also feeds the local press with information and has issued the “A - B - C” slogan. In plain language "A - B - C = Anyone, but Chinese" refers to the goodwill of the Americans for the possible licensing.

For Magna a possible green light, for Youngman possibly the big red stop sign.

What do we learn from this? Economy is war, even at Christmas time.

Text: tom@saabblog.net

17 thoughts on "Saab bankruptcy: Magna - Dongfeng and the ABC Parole"

  • There has been a lot written about an unnamed European manufacturer who has always called this page. What has become of it-should this be Magna ???

  • What bißel wonders that you learn from the Middle Kingdom nothing.
    Y. is too small for the Chinese leadership. At Donfeng, the Schützenhilfe could look different.
    How has the US always fueled China with free markets, etc
    That could quickly turn into a boomerang for GM.
    Just as a mental game: GM prevents Saab from buying. China replies to this with import tax for all GM products in China.
    The Währe ne answer probably would not please everyone. and they even have a very official reason. Competitive practices.
    And that would be only one possible answer.

  • SAAB drivers (especially those of a certain 9-3 convertible series produced by MAGNA) would like to see the takeover of SAAB by MAGNA - we have spoken to many SAAB drivers about this possible constellation.

    The takeover by a Turkish company was also very well received. In Turkey there are now very financially strong conglomerates (so-called conglomerates) - similar to the corporate network of Ratan Tata (Jaguar) in India.

    Greetings from Schleswig-Holstein
    Julie

  • GM's economic patriotism is not exactly promoted by negotiations. Magna burned her fingers on GM when it took over Opel - now everything is more cautious than ever. Saab as a brand in the hands of Magna would have a high probability of success as there are sufficient funds. Dreamlike. Too bad that everything looks like a know-how grab table.

  • Magna has always been interested in owning a proper make of car, I think it's tactics to deny that so GM does not get suspicious. Magna has been exchanged several times simply, that's what they crave, with their own brand they stay on the market, worldwide.

  • Magna currently does not have that many total productions running… .. Mercedes G, Aston Martin in their manufactory, and the Peugeot RCZ… the BMW X3 was previously produced

  • ABC - frightening to what platitudes GM condescends to; because of global players. I would not be surprised if the Chinese show GM at the right opportunity who has the upper hand in China.

  • I had specifically written Automobil-Produktion - not production (and mainly sales) in the Middle Kingdom, as would be expected from a Chinese company.

    Parts production at MAGNA is known to have been globally oriented for years. These are two completely different production fields.

    Greetings!
    Joachim

  • Magna only focused on Europe ??? After all, Magna is a Canadian company
    , albeit founded by an Austrian, but magna is a global player and therefore not safe for the GM people ...... ..

  • The danger in GM's eyes is primarily when the Chinese actually reach out to SAAB - this would naturally shift large-scale production very quickly to the Middle Kingdom.

    In the case of automobile production based essentially on Europe (MAGNA or also with the Turkish competitor), the risk for GM in what has meanwhile become the most important market for this company - namely China - would be classified as extremely low.

    Greetings from Hamburg
    Joachim

  • But is not there the danger that GM will say no again, the fear that Magna will produce vehicles and not act as a service provider, as before, but it does make GM scared,
    can it then no components and parts from your dieversen factories (eg ACDelco)
    Magna can produce them in his own factories.

  • You should already read the text so that you understand it correctly. OEM production is not always parts but also Mercedes, Kia or Audi models that could be built there completely.

  • The fact that Magna wants to rebuild the factory to make parts does not seem logical. Most of the components are delivered, and what makes the factory so valuable is its ability to flexibly final assembly. Since you can not just start, for example, to produce steering. Only the body parts are manufactured in-house.

    I'm hoping for a mixed calculation that will mess up Saabs and contract work from third-party manufacturers. In this way the utilization could be improved. Magna could also offer complete packages based on the Phoenix platform.

    After all, they have not only tried to buy Opel, but also Chrysler and Aston Martin. That sounds like ambitions in my own end production.

  • Do not think that Magna is only interested in the Saabwerk to manufacture OEM parts, consider this to be an unconfirmed rumor with no background …… .. MAGNA can simply set up a plant anywhere in the world… .. and is not in Saabhallen reliant………..

  • Let's hope that Magna gets the nod this time and not run out empty like last time Opel.

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