GM selling Saab (and others)

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General Motors agreed today to sell its Saab brand to Swedish sports car maker Koenigsegg. The move divests yet another brand from once-mighty GM, which sold Saturn to Penske and Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery Company in recent weeks. In addition to GM's dealer closings and plans to shutter the Pontiac brand, the revamped General Motors will be a vastly different firm when it emerges from bankruptcy.

Equally notable, though, is how the divested car lines might fare. Three significant car companies are now held by smaller firms with niche ambitions. This inadvertently trends the auto industry toward pre-1980s merger days, when more small firms had ambitions and opportunities to grow in a splintered market. Volvo, Jaguar, Land Rover, AMC/Jeep, Mazda, Nissan, Saab--all were once independent companies with unique identities. While Chrysler may turn into Fiat USA, many other car lines have a chance to creat unique, compelling products. Expect a more competitive and innovative car market over the next decade as these companies start to differentiate themselves.

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Timely Demise tracks the retail industry as it changes with our unprecedented economic environment. Published by David Wertheimer. Did I miss something? Drop me a line.

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This page contains a single entry by David Wertheimer published on June 16, 2009 9:07 AM.

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