Although entertaining, the drama surrounding Saab has finally concluded.
Sure you will read silly articles discussing a new ‘deal’ for Saab, but in reality Saab passed sometime in 2008. It was then GM provided notice they had no further interest in supporting Saab operations. Born from Jets was scuttled, advertising ended, leasing was over and sales went in a violent tail spin.
Over the next few years exclusive Saab dealerships were declining quickly, and continued during Victor Muller’s fiasco. A Saab dealership became a ‘tuck in’ franchise, meaning if you had room within other brands you placed Saab in one of your buildings with few dedicated resources. It had been (and continues to be) impossible for stand-alone Saab franchises to stay in business.
No really, GM helped.
In reality Saab products were fair in reliability and as good, if not better, than Volvo. From 2004 the new 9-3 held up well and represented a fine value under $30,000. GM also provided a disproportionate amount of healthy dollars in support of a poor performing brand. Under GM’s ownership, sales support (incentives) and advertising costs exceeded any consolidated gross profits realized from each Saab produced. Anyone with clarity about the auto business knows the cost of new vehicle manufacturing in Sweden is the most expensive of any home base, including Germany.
GM sought to close Saab for good reasons. It made clear business sense to conclude that boutique manufacturing in Scandinavia could not compete globally.
The late (and talented) GM Board of Director Jerry York knew this in 2005, Sergio Marchione knew this in 2008 and Muller’s bank accounts discovered this quickly as sales continued a downward spiral with the loss of GM’s incentives and advertising support.

The new 9-5 (and to a certain degree) new 9-4X, were comical executions for the brand, and only compounded losses.
Some say without Victor Muller, Saab would have died in 2010 – so credit is due. Well if that’s true, I guess the same can be said about GM in 1989.
Either way the show ends.
Saab loyalists are left with re-runs.



















