[RC45]

Originally Posted by pitfield They haven't made a good car for 20 years, to be expected. GM totally ruined the brand, it's a shame the Americans ever got hold of it. Losing Saturn is no biggie, Pontiac maybe. Rover was no loss either, they hadn't made a good car in 40 years.

You ignorant hatred for all thing US is so telling sometimes...

A little history lesson is in order here. GM SAVED SAAB from a deserved death 20 years ago.

G.M. to Buy Half of Saab Car Unit By PAUL C. JUDGE, Special to The New York Times Published: December 16, 1989 DETROIT, Dec. 15— The General Motors Corporation surprised the auto industry today by announcing it would buy half of Saab-Scania A.B.'s troubled car-making operations. The move enlarges G.M.'s European presence and plugs a hole in the company's product line, which needs models that can compete with imports like BMW and Mercedes-Benz. G.M. attributes Saab's trouble primarily to its small size and figures it can bring economies of scale to the Swedish company, benefiting both partners. G.M. will pay $500 million for 50 percent of a new company, Saab Automobile A.B., that comprises Saab's auto making assets. Saab has been looking for a partner for several months as its sales and profits have dwindled, and even some company insiders were betting on Fiat S.p.A. Volvo A.B. and the Ford Motor Company also made offers for Saab, but it rejected those three, reportedly because it was unwilling to give up a controlling interest. Instead Saab approached G.M., which only six weeks ago lost out to Ford in a bid for Jaguar P.L.C. Saab-Scania will keep its profitable truck making, aircraft and military operations. The joint venture requires approval by the Swedish and United States Governments, and is expected to be completed by mid-January, G.M. officials said. In addition to its equity investment, G.M. is committing $100 million to the company for use as operating capital to cover salaries, materials and equipment purchases for Saab, a G.M. spokesman said. Saab's sagging car business lost $188 million in the first eight months of this year. The cars built by the new company will be sold under the Saab name through Saab's independent dealer network both in the United States and abroad, an attempt to preserve the prestige and customer base that Saab has built up, analysts say. ''It's less expensive for a car company to buy a luxury division than it is to make one from scratch, mainly because of the high costs of setting up distributors,'' said Scott Merlis, an auto industry analyst with Morgan Stanley & Company. Advantages for G.M. Debated Analysts said the financial advantages of the deal were less compelling than the improved position it provided for G.M. in Europe. ''G.M. will lose money on this in the first year, but the numbers are small enough that it's not critical,'' said Harvey Heinbach, an analyst with Merrill Lynch. But some analysts questioned the wisdom of the deal. ''I don't see what G.M. has gained,'' said Maryann N. Keller, an analyst with Furman, Selz, Mager, Dietz & Birney. ''The Opel product line in Europe is already very strong, with models that aren't all that different from the cars that Saab sells.'' Unlike Jaguar, which can bring out new models in a year or two with the help of Ford's investment, ''Saab has nothing in the pipeline,'' Ms. Keller said. Manufacturing costs in Sweden are among the highest in Europe, she noted. ''G.M. will probably make Saab profitable in a year or two if the currency situation is favorable, if component costs are saved and if costs at Saab's plants are cut,'' Mr. Merlis said. Saab's View ''Our problem has been that our volume is too small,'' said Kai Hammerich, an executive vice president with Saab-Scania in Sweden. The company's market share in Europe is less than 1 percent. G.M. already has an 11.4 percent share through its Opel and Vauxhall subsidiaries. ''With a strong partner, we can get the resources to expand our business,'' Mr. Hammerich said, adding that Saab expected to increase production and broaden its product line. The deal does provide G.M. with an option to make cars at Saab's three plants. In North America G.M. has too much car-making capacity, but in Europe, the only place it has earned profits on car-making operations this year, G.M. believes it could use more. Saab's Potential Output G.M. officials estimate that the three Saab plants - two in Sweden, one in Finland - could turn out between 180,000 and 200,000 cars a year - about as much as a single American plant. But the Saab factories have been running at half to three-quarters capacity since the mid-1980's, because of slumping sales. With the company's future uncertain, Saab's sales in the United States have fallen 16 percent so far this year from a year earlier. G.M. also plans to acquire a large stake in Saab's automotive electronics business, which will be spun off into a separate company, Saab-Scania Automotive Electronics A.B. Saab will retain majority ownership of the electronics business, which is of interest to G.M. primarily because it makes a new direct ignition device that improves cold starting and prolongs spark-plug life. Photo of a new Saab-Scania automotive plant in Malmo, Sweden. (AP)