SaabsUnited reports that during today’s weekly press conference, the bankruptcy administrators reported that 7 serious bidders have lined up to purchase Saab. This is certainly more interest than had been previously reported. Mahindra and Youngman have been widely covered in the news, but this has allowed other companies to quietly place bids.
The press conference suggested that one of the bidders was a European based car company. While that leaves the possibilities wide open. They let slip that the company was based in Munich, Germany. That, of course, only leaves one option…BMW.
The administrators have expressed that the higgest bidder may not necessarily win. In this case, the creditors have to agree and they will only consider a company that could continue Saab using a non-GM platform. This would certainly bode well for BMW.
I really have mixed feelings about BMW taking over Saab. Saab, a Swedish company, has always been viewed as an alternative to the German cars that have taken over the European market. However, this would allow BMW to incorporate their technology into Saab. If the pricing remains as it was for the 2011 models, the future BMW backed Saabs could compete with Lincoln, Lexus, Infiniti, and, most importantly, Buick. GM does not want Saab to survive simply because of the competition. With BMW backing, Saab would only be better equipped to compete with GM and the other mid-level luxury car makers.