Study: Saab’s brand value started to decline since 2001 image

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.

  • http://twitter.com/carzzar @carzzar

    I never understood why GM bought Saab. In 1999 Pontiac had lost its identity, Saturn still had not made a dime, and Olds looked like it had finally built a product turnaround. Why would you buy a car company that was know for its safety, and not exploit it, between its other brands or within the Saab brand. 'Running with jets', running dry.

  • TelltheTruthGM

    SAAB was not about to go into Bankruptcy, on it's own 2010. Only because GM decided to kill the brand other than sell it. SAAB survived because 1000's and 1000's of loyal owners changed GM's mind. How many of GM's previous shuttered brands showed such support for Hummer, Oldsmobile, Pontiac, or Saturn?? A big ZERO!

    Reminder: GM only survived because they were given a free ride with US Government Loans, as well as over $6 Billion in Taxpayers money, which by the way has not been paid back.)

  • Timothy

    Who is this Lyman man? Where does he get his credit from? He does not know what he is speaking of. You can not compare Saab to Oldsmobile.

  • nancy

    and no there nothing like a saab. this guy had not a clue. it would be better for him is he wrote children books and even then ill be he ll suck at that