Jan Ake Jonsson, the CEO of Saab, is in Detroit today – along with a number of Swedish government officials – in hopes of speaking with other potential buyers after the deal with Koenigsegg Automotive AB fell apart.
Three potential buyers have slowly come forward including Beijing Automotive Industry Holdings, The Renco Group Inc. and investors Merbanco Inc. Obviously, the biggest name on the list is BAIH, and they are truly in a position to execute a Saab business plan; however, will BAIH and GM be able to finish a deal?
Frankly, this sounds like a last, desperate, Hail Mary type of play on the part of GM but if Beijing Automotive Industry Holdings plays their cards right they company can walk away with Saab at a fire sale price.
On another note, it looks like the problems of Dubai are going to magically go away… OK, the situation is not exactly that happy but it now looks as if the central bank of the UAE will provide a funding to insure against a default of Dubai debt. The roughly $700 billion the UAE central bank has on the books is more than enough to save Dubai, it is sad to see this happen.
Why?
Quite simply the action will calms fears and perpetuate the unrealistic belief that there will always be someone to bailout those in need, that too big to fail is a reality. If a default can happen to Dubai, it can happen to any government, but not every government will have an angel to provide them with a rescue package.
What would the world to then?
My guess is panic.
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