GM watch, Stuttgart dreams

Porsche are shopping around for acquisitions.  Could they, would they?  Dare I even think about them purchasing Saab, giving GM a cash injection and Saab a very fast future?  Oh, the possibilities…

In the 99% event that this doesn’t happen, you have to keep an eye on GM’s road toward possible bankruptcy and the preview we’re getting with Delphi.  I posted on your typical Delphi employee the other day, a guy who’s wages will always divide reader’s comments.

The Detroit News has what I think is a pretty good summary of the current situation in a story covering GM CEO Rick Wagoner’s entry into the Delphi/UAW negotiations:

This may be Detroit, the nation’s capital for denial, but this bankruptcy cannot be stopped. It can only be slowed, which is what GM’s arrival at the table means.

Delphi is broken, partly because of uncompetitive contracts with its former parent, GM; partly because those deals tie it to uncompetitive businesses it no longer wants to be in; partly because (mostly former) management at both companies were cowed by confrontation and took the easy way out.

The UAW is broken, too, clinging to a wage-and-benefit regime that enriched previous generations but threatens to impoverish tomorrow’s if it remains unmodified.

Yes, GM will lose big if a Detroit Meltdown cannot be averted and forces the automaker into bankruptcy. But the UAW and its members would lose bigger because GM is their Mother Lode.

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6 Comments

  1. I floated this idea a while back on the Saabnet board and it went over like a lead balloon. I feel that GM selling SAAB would be the best thing to happen to the company. Porsche would make an excellent buyer for SAAB (turbo charging history, sleek, individually styled vehicles). Instead of Porsche building a four door (as they are rumored to be doing) and diluting the brand, they could purchase SAAB and let them be their four door sports car division. Are you listening Porsche? It is fun to dream.

  2. No complacency here Johnny. I reckon the idea is a corker!! I’m planning to jot down some thoughts on it later.

    Next time you’re on Saabnet, try asking for BBQ tips or something. I’m sure you’ll get a greater response….;-)

  3. And Pete, Little Lleyton is confined purely to baby talk now. Shouldn’t notice too much difference I’d say. I hear rumours that he wanted to call the baby “Kim” but Bec wasn’t amused.

  4. Have seen an image of a porsche 4 door – nearly as nice as a saab one.

    IN some ways Saab could save Porsche from their one big dilemma: the 911 owners reckon the Cayenne is a toss but the cayenne is actually paying the bills. Hence the consideration of the 4 door and the threatend dilution of the brand…..
    Saab offers the middle of range solution which pads the bottom line so the 911s can keep rolling out. I think they’re already sharing an assembly line in Finland with boxters and 93s.

    How about starting a romour of the week. Not only are Porsche buying Saab, they are relocating to Finland, entering formula one and Kimi has signed up in exhange for a share in the company…..

    As for Lleyton – if that is true, its a)about what I’d expect b) bloody funny.

    Noticed you’re posting again on saabnet swade. The prodigal son returns and all is forgiven?

  5. I must have been preparing my porsche post as you finished commenting, Pete.

    As for the Sabnet thing, I shall have to check out and see who might be using a name that could be mistaken for me…..I use a nom-de-plume about once a month (if that).

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