Saturday, May 14, 2011

Saab-Hawtai

Saab-Hawtai

Interesting things happening with the failed purchase of Saab by Hawtai. I wish I had more time to comment on this, but I am in the homestretch to finish my dissertation and get it filed -- possibly as early as next week. I will say, however, that I find it interesting that the two sides are starting to change their stories.

My guess, based on what little reading I've had time for, is that Beijing wants Saab to go to one of the larger Chinese automakers. The last thing it wants to do is strengthen a tiny, private automaker like Hawtai which only produced about 80,000 vehicles last year. And the reason China's other automakers haven't stepped up to bail out Saab yet is that they are counting on Saab's assets being cheaper after Saab has declared bankruptcy. Smart move.

The Chinese media are all suddenly beginning to say (almost as if directed by someone) that Chinese automakers no longer need foreign help. Which, I'm sorry, is total BS. If Chinese automakers had the necessary engineering skills to build great cars, they would be flooding the American market with them as we speak.