Quick thought on NEVS and Saab Parts AB

There has been a lot of talk about the understanding we have that NEVS’s bid for Saab does not include a bid for Saab Parts AB. People have taken that to mean that NEVS don’t want to support, or don’t care for, current Saab owners. But is that actually the case?

Whilst I agree with many others out there that a package deal where the buyer of Saab Automobile also buys Saab Parts would be the ideal scenario, there’s nothing to state that they have to be bought together in order to constitute a credible deal.

Credit where credit’s due: This line of thought actually came to me via email from a friend of mine. This is not a piece of Djup Strupery to get excited about. It’s just a thought, but one that’s worth pursuing before we all go jumping the gun.

Bernard has just had a similar thought in comments:

To be fair, they do not “want” Saab Parts at the current offer price, which is reportedly higher than the rest of Saab combined.

The NDO is effectively committed to running Saab Parts in the medium term, so this may be a good business decision.

They can always make an offer on the parts business at a later date.

As Bernard suggests, it could be that they think Saab Parts AB is overvalued. Alternatively, maybe they’d like to purchase Saab Parts, but their business case right now simply can’t fund the acquisition. They know that if a buyer is not found, then the NDO will run the operation for some time and as Bernard suggests, they can pick up this branch of the business’ operation later on.

This is all just theorising, of course, but if there’s something to be learned here, it’s that there’s more than one way to skin a cat. NEVS’s decision not to acquire Saab parts could well be an abandonment of the Saab faithful as some have suggested. It could also be evidence that they know what they’re on about, much more than we think.

Until we know, perhaps it’s best to keep an open mind.

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11 Comments

  1. All of this may come to pass but what bothers me is that there seems to continue to be a lot of focus on getting the best value/not leaving money on the table/outwitting the other side/tying their products into a myriad of contracts/protecting IP/getting some kind of “free” investment from this or that government or agency…….. and not much focus on building cars. I appreciate that no-one wants to buy something which goes on to fail but seriously: its a car company with a factory – how complicated does it need to be?

    It seems Saab continues to be a lawyers bonanza and a car enthusiasts graveyard.

    Rant by disillusioned Saab fan now over.

  2. What frustrates is that there is No clairty from the recievers. The recievers Could choose to atleast say that “Hey don’t speculate. There are ongoing discussions and we will be done soon.” and what not. As nothing is said speculations go on and on and on and frustration builds.
    Ofcourse people understand there are alot of things that needs to be sorted and that it’s time consuming. But thing is… This bankruptcy isn’t a wee one but a Major one with lots of heart, soul, fans and Media involved. The recievers need to be more open (not with stuff that could damage ofcourse) to the public to be able to make their own and the suitors work less disruptive.

  3. Fully agree. Better to spend the money on research and development, while the Swedish state sets up a support structure for us owners that can later on be used as a starting point for spare parts of new cars, servicing points etc.

    Actually, I like the idea of getting parts from the Swedish people, grin.

  4. We need parts in the U.S. , Allentown is not taking orders from anyone . If the parts business was the profitable side why is it Delorn cars are still supplied , and SAAB parts USA is ignored . sigh. I never thought I’d see the day that SAAB was so ignored , and their customers . We belived , and from what I see G.M.’s IP isnt that far from any euro brand if not behind .

  5. It has been said that NEVS possibly can’t afford to buy Saab Parts? This speaks volumes for it’s ability to re-start Saab and implement new models. I have little trust in this bunch.

    1. Mark, It’s been said by who?

      I’ve positioned it here as a theory and one that doesn’t say anything at all about their ability to re-start Saab.

      Maybe it’s as you say, maybe not. I’m trying to keep an open mind.

      1. I read that somewhere in the last couple of days, but I can’t pin point where at the moment. It might have just been a comment somewhere, but I did find it worrisome.

        As I’ve previously stated in comments around the place, I’m not totally against NEVS. I wish that the consortium would team up with another bidder to buy Saab. If that happened to be a car manufacturer that produced conventional fossil/bio fuel cars, it would give Saab a good income whilst the market gradually transitioned to Hybrids and EVs. Plus NEVS could be extremely useful with R&D and sourcing new technologies. This is what Saab really needs. But with NEVS by itself, I can only visualize an almost empty factory producing very small numbers of cars, whilst it patiently waits for buyers to embrace it’s new products. I’m guessing maybe that NEVS has other objectives that don’t include Saab, and getting hold of a factory and a recognised brand is just a convenient step in it’s plan? Unfortunately when we know everything, it could be too late?

      2. Off topic, I finally got my Monte back about a week ago after waiting almost 7 weeks for the dreaded firewall/bulkhead separation repairs. My car went over $A3000 and I’m told it was far from the worst case, some repairs can top $A4000. From my research, convertibles are most susceptible.

        Anyway, the car’s engine management was powered down for that period and it seems to have done the car the world of good. My Monte had always been somewhat sluggish and I don’t think it ever performed the way it was meant to. Even unmodified, yours would’ve eaten it for breakfast. Anyway it certainly performs well now and with a new set of tyres and some Redline gear oil, it’s just magic to drive. It’s only just reached 107,000 km so it’s still got plenty of life in it.

        1. Glad to hear it’s going well. It’s amazing how little things can make such a difference.

          I still see Monte’s around here and remember it fondly, but if I go another 9-3 (not likely in the near future) it’d be a Viggen. Unfinished business there.

          1. Well I hope you get another Viggen some day. Just remember to check the firewall for cracking. That’s advice I’d like to pass on to anyone looking at a RHD NG900/OG9-3. From my research, it could happen to at least 30% of RHD cars eventually, and convertibles seems the most susceptible (probably due to more chassis flexing). It’s also more likely to happen to turbo models.

  6. Mahindra could still be lying in wait, waiting for NEVS-owned Saab to collapse before making an offer to buy Saab. I think NEVS’s ownership might even be shorter than Spyker’s, given the former’s obscurity, allowing a perfect opportunity for Mahindra to strike back later.

    This year marks the 50th anniversary of the Sino-Indian War in 1962 in which the Chinese routed the Indians across their Himalayan border. There is no way the Indians will allow themselves to be humiliated by the Chinese again on this occasion, as when their major conglomerate Mahindra is defeated by this obscure Chinese-backed NEVS in the race for Saab.

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