I just had a thought as I was reading through the numerous press articles about Saab’s reconstruction announcement today.
GM are asking governments all over the world to pitch in and help save the GM units in their jurisdictions.
Opel (and by extension, Vauxhall) are in the can for billions. Holden are shaky and Aussie government has already offered assistance. Daewoo are sinking.
Need I remind you about GM’s US operations?
GM have asked for assistance in Sweden, Australia, Canada (just today), Thailand, the UK, Germany and who-knows-where-else and then there’s The Big Ask in the United States.
Up until this week, everyone was looking for a way to help….and then the Swedes stepped in. Maud Olofsson and her buddies stood firm and told GM “this is your mess, you clean it up”.
I’m not sure it was the right thing to say for the long run, but it was a solid stance that quite likely sent shivers through the spine of the Ren Cen.
The US Congress initially declined GM’s request for money, but that was more for show than anything else. A few representatives got to make their point, but everyone knew that a compromise would come through to save the jobs that were on the line.
But GM don’t just need help from the US. They need help everywhere and now someone’s stood up and said “no”. Will other governments stand up and do the same? The thought of that must be pretty scary for the suits in Detroit.
As I said, I don’t think Maud Olofsson’s decision was the correct one. I think with a good plan and good prospects, the Swedish government should support their automotive sector as they pledged they would.
What is is, though, is a decision that’s made GM react to assist Saab with loan guarantees – something I’m sure they’d rather not do. If other governments take the same stance, GM could be shown as the house of cards that it is at the moment.
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