GM Hires AlixPartners to wind down Saab

8th January 2010

GM today confirmed it has selected AlixPartners to supervise the orderly wind down of Saab, and has requested approval of the selection by the appropriate authority in Sweden. The use of a wind down supervisor is a commonly-used process in Sweden and works in the interest of the shareholder.

The wind down process is expected to take several months, and will ensure that employees, dealers and suppliers are adequately protected. As stated previously, Saab customers can be assured that warranties will continue to be honored and that service and spare parts will continue to be available.

GM also confirmed that it has received several proposals for Saab and is continuing to evaluate these proposals. This evaluation is not affected by the appointment of AlixPartners.

You have to really wonder what the heck is going on in the tubes (GM’s RenCen HQ in Detroit). GM keeps rejecting deals for Saab, but then decides to just shut it down. A little common sense might go a long way here. It costs money - lots of it - to shut down a company or an automotive brand. GM should seriously consider a deal to take it off their hands for a player to be named later and a cup of coffee. But aside from the costs of the 2 possibilities here, GM also needs to consider its reputation. Saab has legions of loyal customers, despite GM’s mismanagement of the iconic brand over the years. If it shuts it down, not only will many thousands of people worldwide be put out of work, GM’s reputation will take yet another hit that it can ill afford. Yo, Big Ed, take however much time you need, and take the best offer you can get. Shutting it down should only be a consideration if you have no credible offers in hand.