With the Big Three auto companies in dire need of cash, they've all considered the possibility of selling some of their brands. General Motors' (NYSE: GM) Hummer, Saab and Saturn, along with Chrysler's Jeep and Viper and Ford's (NYSE: F) Volvo are all reportedly on the block."Trouble is, nobody seems to have the interest - or the equity - to make a deal," Fortune reports.
That doesn't bode well for the companies efforts to turn themselves around with the help of taxpayer cash. Think about it: Well-financed Asian auto companies like Honda (NYSE: HMC) and Tata Motors Ltd. (NYSE: TTM) could pull these nameplates off the scrap heap for a relative pittance -- without having to take on burdens like massive debt loads and pension obligations. But they're not willing to because they don't think they can make money with it.
Yet, somehow, we're supposed to believe that managerial geniuses like Richard Wagoner and Bob Nardelli can turn around their brands without shedding their massive debt obligations. It just doesn't make any sense at all.
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Reader Comments (Page 1 of 1)
2-09-2009 @ 2:46PM
John Irwin said...
You forget about the genius of Bob Nardelli. He accomplished alot at Home Depot. He was the one who was going to put in oil change service bays for all the contractors who had time on their hands because they couldn't get waited on.
2-09-2009 @ 3:05PM
Steve said...
The Saab brand appeals to a niche market, which was willing to pay the higher price when Saab produced a quality product in Sweden. GM totally destroyed the brand, so now the name will have to be completely rehabilitated. Can the Saab be produced in as a luxury brand by an American manufacturer? Or has all hope been lost?
2-09-2009 @ 4:22PM
daang7601 said...
There's only ONE automobile brand, and that's "PRIMITIVE Internal Combustion, Gasoline fueled, gas-guzzling Vehicles"...