• 14
Swedish site The Local claims that Saab produced $531 million in black ink in 2009. Not possible, right? General Motors was, after all, all too ready to walk away and let the Born from Jets automaker die a pauper's death. Well, it seems as though all automaker profits come chock-full of asterisks, and the half a billion dollar profit is certainly no different. Saab was reportedly able to make with the dough by brokering deals with creditors to write off 75 percent of its debt and by selling technology, tooling, and manufacturing rights to Chinese automaker BAIC for $164 million.

Without Saab's extraordinary efforts to remain in business, the company would have lost $752 million in 2009. The Swedish automaker sold a mere 38,756 vehicles during the tumultuous year, generating revenue of just $820 million. We're thinking that there is little chance Saab will be able to pull big-time kroner out of its collective hat in 2010, so the automaker will probably have to rely on its new-for-2010 9-5 and newly leaner organization to book profits in the future.

Photos by Chris Paukert / Copyright ©2010 Weblogs, Inc.

[Source: The Local]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 5 Years Ago
      Simply not being part of GM reduces Saab's cost of doing business and that will help the bottom line, but they still need to start selling cars.
        • 5 Years Ago
        Coolio, Coolio, Coolio. They no longer need to add an internal expense item for GM's corporate overhead. R&D is an expense directly related to the cost of producing and manufacturing a car and existed anyway. But how do you think all of those corporate bureaucrats in Detroit are paid for? Not to mention pension liabilities and medical expenses for retired non-union employees.

        GM like all large companies extracts what you can think of as an internal tax on its subsidiaries and operating units to cover corporate costs. Saab like all GM divisions had its own P&L and if corporate waited to collect their bounty only from division profit, there wouldn't be any as a smart division financial officer would minimize the internal reported profit. But the corporate FO knows this and gets his money up front.

        • 5 Years Ago
        "Simply not being part of GM reduces Saab's cost of doing business "

        Yeah, now they can fund all their R&D themselves ! Idiosa !!
      • 5 Years Ago
      Saw the new 9-5 in the metal for the first time this weekend. Looks much better than in the photos!
      • 5 Years Ago
      Go SAAB!!!!

      Imagine what they can earn when they actually sell some cars
      • 5 Years Ago
      A good thing; but, it will still take a little time for the new company to remove the GM from the car and change it's character and quality back to a real car.
      • 5 Years Ago
      high sales = high production
      high production = low quality control, low quality supliers, recals, lose money
      despite high sales.
      High production = GM, TOYOTA , coming soon Hyundai.
      Strategy= never try to be No. 1 , contend to be four or five, take care of profit
      not sales and you will survive.
      = HONDA
      • 5 Years Ago
      Now there's a business model I like - sell next to nothing and PROFIT!
        • 5 Years Ago
        Step 1: Sell a couple of cars.
        Step 2: ????
        Step 3: PROFIT!

        Looks like midgets are running SAAB now.
        In other news i also spotted the new 9-5 here in Sweden, in black. It does look mean! Also reports of people seeing them with red turn signals, aka. export models since it aint legal with red turn signals in Sweden.
      • 5 Years Ago
        • 5 Years Ago
        Not sure what happened there.....

        I'm very happy for Saab!
        Good job!
      • 5 Years Ago
      I saw 4 9-3's in a parking lot yesterday. I think they are pretty nice looking cars.
      • 5 Years Ago
      Buy a Mazda
      • 5 Years Ago
      Juggle the books, Downsize, Outsource and Profit. Now there is a business model we all could use! Oh, I'm sorry the corporations in this country already have!!! That's why there's nothing left and China's right regardless of how wrong the "trickle down" theory of Reaganomics is. Party on Garth, have more children and fill the ranks of the new order of slave labor coming to a pool near you! Don't jump in however, because there is no water, just a lot of sweat and blood.
    • Load More Comments