According to a recent study conducted by ALG, the value of the Saab brand has been declining since 2001.
ALG’s Statistical Brand Value analysis shows a monumental collapse of the brand’s weight with consumers. In 2001 Saab’s commanded a premium of more than 20% compared to the industry average. In 2011, they had to make up a 20% brand deficit.
The analysis looks at other brands that have been shuttered in the past decade and applies those learnings to Saab’s situation. While other brands with distinctive personalities, such as Hummer, have seen values rise over time due to a lack of supply, that factor is unlikely to help Saab.
“Despite its early cult-like following similar to Hummer, Saab’s wind down is much more like Oldsmobile,” said Lyman. “Consumers have plenty of alternatives to satisfy their needs.”
Of course, there’s still a chance that Saab will survive as a brand. A half-dozen parties are considering buying the business and restarting assembly, according to the court- appointed Swedish attorneys handling the bankruptcy.
Some of the interested parties are: Chinese carmaker Youngman, Indian commercial utility vehicles manufacturer Mahindra and Mahindra, Turkish private equity firm Brightwell Holdings, The German automaker BMW, and Swedish car maker Volvo Car Corp., owned by Chinese Zhejiang Geely Holdings Group Co.
So at the end, the company can still emerge from bankruptcy if a viable proposition is accepted. Question is – will GM accept this time?
Saab Automobile, owned by Dutch company Swedish Automobile NV (SWANE.AE) filed for bankruptcy in December, nine months after halting production due to a lack of funds.
It was already on the brink of bankruptcy when GM sold it in early 2010 to Dutch company Swedish Automobile (SWAN) — at the time called Spyker — for $400 million.
The past two years have been lined with desperate efforts and numerous failed deals to keep it afloat.