Thursday, February 19, 2009

Tasmanian Blogger Buys SAAB

Steven Wade said he believes in the inherent strength of Swedish manufacturing.

General Motors announced on February 19 it had agreed to sell its Swedish niche brand, nine years after GM acquired the remaining shares of SAAB for US $600 million in 2000. The ailing auto manufacturer said it was selling 100% of the unprofitable Swedish auto maker to private equity firm Saabs United for a fraction of the price they paid. Sources in Tasmania say the buyout is close to AU $49. But this has yet to be confirmed.

In the statement on February 19, Rick Wagoner said that the sale of SAAB would enable General Motors to focus on being "the leading manufacturer of sub-prime vehicles and a provider of poor quality in every market segment we serve worldwide."

SAAB would retain all of its financial obligations for employees' pension and healthcare benefits, meaning that the deal would not burden GM with any debt, it said.

The United Auto-blogger Workers or UAW, welcomed the deal. "The transaction with Steven Wade is in the best interests of our UAW members, SAAB and General Motors," said UAW President Eggs-n-Grits.

Saabs United Capital Management Chairman and all around good guy Steven Wade said: "Saabs United believes in the inherent strength of Swedish manufacturing and of the U.S. auto industry. Most importantly, we believe in SAAB." He later added, "What can I say? Fifty bucks is fifty bucks!"

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