With the auto industry in such a turmoil, AutoObserver has been blessed by a wealth of topics to explore. One of which is the future of GM and Ford's Swedish patients: Saab and Volvo. Both brands are ill, with Saab being the far more ill of the two. Both brands are also considered fringe, if not exotic forays by these automakers, and therefore not central to either corporation's survival. ...And these days "survival" is exactly what GM and Ford are striving for.
So, that being the case, what do you think will happen to Saab and Volvo?
Here's AutoObserver's take: Cash Crunch Simultaneously Prods, Prevents Castoff of Swedish Automakers
ateixeira says:
07:24 AM, 11/ 6/08
Sell to the highest bidder. Raise much needed cash.
orangutan says:
10:09 AM, 11/ 6/08
I like both brands and would like to seem them survive, but I have my doubts about whether Saab will make it through this debacle.
hondacura4 says:
01:53 PM, 11/ 6/08
I guess the initial purchase of the 2 brands was part of the domestic auto industries "bigger is better" belief, or former belief.
I never did fully understand why GM and Ford bought these 2 ailing compainies when their own products were in much need of help. As much as I hate to say it GM and Ford unfortunatley put themselves in their current situations. The union was only part of the equation.
brn says:
06:16 AM, 11/ 7/08
"GM and Ford unfortunatley put themselves in their current situations"
I wont rehash, but I say there's a lot more to it than simply blaming Ford and GM. Their timing just sucked.
hondacura4 says:
10:17 AM, 11/ 7/08
"I wont rehash, but I say there's a lot more to it than simply blaming Ford and GM. Their timing just sucked."
Brn, I clearly wasnt suggesting there werent other variables involved but at the time they didnt really help themselves. GM or Ford shouldnt have purchased any of those ailing companies as they werent healthy themselves. Just like the current economic crisis, the signs were clearly there and very visible but they chose not to see them.
Poor management, poor money mangement, UAW, lack of efficient production techniques ....all those things were part of the equation. I do however wish them the best.
estreka says:
11:54 PM, 11/ 7/08
Oh, I don't know. At the time of purchase, the Big 3 (as they were then called) were making record revenue with heavily upmarked Suburbans and Explorers. While labor costs were high, they were certainly nowhere near as high as they are now. I'm not convinced Detroit made the wrong decisions based on the info available at the time. They saw a lucrative niche and filled it. And you can't say they didn't spent those profits to diversify their portfolios. PAG, Saab, and Saturn certainly represent a grand assortment of vehicles.
I don't think you can overestimate the impact of the UAW, specifically medical costs. When Ford is paying $1mil/month on Viagra, something is terribly wrong.