Why did GM Buy Saab in the First Place?

Print pagePDF pageEmail page

The demise or sale of Saab brings up the question: Why did General Motors acquired Saab?

Was it because GM thought they knew what was needed by the Swedish company to succeed or rather because GM did not want someone else to buy Saab?

I don’t believe GM’s management ever understood that a small manufacturer, like Saab, based on quality and innovation has a different philosophy and must operate in a completely different manner than that of a mass production colossus like GM, especially in America, where cars are manufactured the same way that electrical appliances are made, in high production volume. It would be similar to buying a gourmet restaurant and then running it like a McDonald’s franchise. If you do this, you have lost the competition challenge before you even get started.