Saab-Spyker too small to survive? Maybe!
By Andrew C., 27 Aug, 2010. 0 Comments
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Even before an announcement was made on whether General Motors Co. had reached a deal for Spyker Cars NV to acquire Saab, detractors have already come out, one of which is Fiat S.p.A. CEO Sergio Marchionne. Many inside the auto industry have expressed skepticism about the success that Spyker will experience as new Saab owner. Many doubt that the new company, dubbed Saab Spyker Automobiles, will be able to survive in this climate due to the fact that neither company is profitable and because of Spyker's size.
It does seem odd that Spyker only has 100 employees while Saab has about 3,400. Referring to Saab and Spyker, Marchionne said that to be a profitable niche player is difficult and that marginal players will continue to be marginalized. Marchionne was interviewed while at an industry event in Stockholm last Tuesday.
It can be recalled that last year, Marchionne saw synergies between Fiat's money-losing Lancia brand and Saab. Marchionne then decided to include the Swedish carmaker as part Fiat's offer for Opel in May. However, Fiat later withdrew its bid when GM demanded cash. In 1989, Fiat also made a bid for Saab but was beaten by GM, which got a 50% stake in Saab. GM later took full ownership in the Swedish brand in 2000. [via autonews]
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