Saab. One of the most reliable, well-built cars you can imagine, ceased production in early April due to lack of funds. How could such a brand of car breakdown in such a way? After being sold to Netherlands-based firm Spyker, the future of the famous Swedish brand was to be given a helping hand by a Chinese company – Hawtai – who were seeking to purchase a 30% stake in the firm. For anyone who loves this unique car brand, that recent news was most welcome indeed. Unfortunately, the latest news is that the deal with Hawtai did not happen.
Founded in Trollhättan, Sweden in 1937, it is perhaps surprising that a Chinese company formed as recently as 2000 should come along and rescue it. Such is the vigour and success of the Chinese manufacturing economy,to put Hawtai’s size into perspective, they are able to produce up to 350,000 vehicles a year. The Saab deal will see both firms sharing technology.
It is difficult not to see a pattern here. As the years roll on, more and more famous European brands are being bought up by emerging economic nations – namely those in South East Asia, the Indian sub continent – and China. In the decades since World War Two, it was American firms (General Motors bought Saab in the first instance) who were buying the big names. But now, even the Americans cannot compete with these emerging nations, who have lower material and labour costs – and who, perhaps more importantly, seem to see their futures at the very forefront of global manufacturing and business as a whole.
Not even the Swedish, famed for their ingenuity and efficiency (and their high – expensive –
living standards) can find a way to compete with these Eastern nations. Personally, I watch with bated breath at how European business can compete with the likes of China and India
Breakdown Cover from 
