Dwarf Buys Giant: Spyker’s Acquisition of Saab

Mignon Halderen; Irma Bogenrieder; Y Tao

Dwarf Buys Giant: Spyker’s Acquisition of Saab

Mignon Halderen
, Irma Bogenrieder
, Y Tao

Research output: Memorandum/exposition › Research case

Abstract

The Dutch boutique sports carmaker, Spyker, acquired the Swedish carmaker Saab from General Motors (GM) in February 2010. Owing to fading fortunes across its entire business during the recent economic crisis, GM had looked to divest Saab since 2008 and eventually sold it to Spyker at a price much lower than Saab’s real worth. Although Spyker received thousands of Saab fans’ support, others doubted whether Spyker could turn Saab into a viable business. The scepticism was centered on the two companies’ huge differences in sizes and the fact that neither was profitable. Spyker CEO Muller was nevertheless confident he could make Saab profitable by 2012 and restore its once iconic status, which GM had let sink. He thought it crucial to explain the logic behind his decision to those stakeholders who did not believe in the Saab-Spyker synergy. Restoring customer, dealer, investor, employee, and public confidence was his top priority in 2010.

Original language	English
Project No.	510-078-1
Publication status	Published - 2010

Bibliographical note

The case serves three objectives. First, it helps students understand the business
circumstances in which a small (non-profitable) company can buy a large
company that is suffering financially. By analyzing the case, students can gain
insights into strategies used to create profitability for both brands.
Second, the case helps students understand the implications of an alliance
between an exotic, luxury car brand and an upper class, mainstream car brand.
Students may ask:
• How do you create fit between both brands?
• Which branding architectures are most appropriate in this situation?
• How do you revitalize a nearly dead brand like Saab?
Third, the case helps students understand the role of corporate communications
(and corporate stories in particular) in increasing brand credibility (and thus
reduce skepticism among stakeholders) after an unconventional acquisition like
the Saab-Spyker deal.

Research programs

RSM ORG

Cite this

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title = "Dwarf Buys Giant: Spyker{\textquoteright}s Acquisition of Saab",

abstract = "The Dutch boutique sports carmaker, Spyker, acquired the Swedish carmaker Saab from General Motors (GM) in February 2010. Owing to fading fortunes across its entire business during the recent economic crisis, GM had looked to divest Saab since 2008 and eventually sold it to Spyker at a price much lower than Saab{\textquoteright}s real worth. Although Spyker received thousands of Saab fans{\textquoteright} support, others doubted whether Spyker could turn Saab into a viable business. The scepticism was centered on the two companies{\textquoteright} huge differences in sizes and the fact that neither was profitable. Spyker CEO Muller was nevertheless confident he could make Saab profitable by 2012 and restore its once iconic status, which GM had let sink. He thought it crucial to explain the logic behind his decision to those stakeholders who did not believe in the Saab-Spyker synergy. Restoring customer, dealer, investor, employee, and public confidence was his top priority in 2010.",

author = "Mignon Halderen and Irma Bogenrieder and Y Tao",

note = "The case serves three objectives. First, it helps students understand the business circumstances in which a small (non-profitable) company can buy a large company that is suffering financially. By analyzing the case, students can gain insights into strategies used to create profitability for both brands. Second, the case helps students understand the implications of an alliance between an exotic, luxury car brand and an upper class, mainstream car brand. Students may ask: • How do you create fit between both brands? • Which branding architectures are most appropriate in this situation? • How do you revitalize a nearly dead brand like Saab? Third, the case helps students understand the role of corporate communications (and corporate stories in particular) in increasing brand credibility (and thus reduce skepticism among stakeholders) after an unconventional acquisition like the Saab-Spyker deal.",

year = "2010",

language = "English",

}

TY - GEN

T1 - Dwarf Buys Giant: Spyker’s Acquisition of Saab

AU - Halderen, Mignon

AU - Bogenrieder, Irma

AU - Tao, Y

N1 - The case serves three objectives. First, it helps students understand the business circumstances in which a small (non-profitable) company can buy a large company that is suffering financially. By analyzing the case, students can gain insights into strategies used to create profitability for both brands. Second, the case helps students understand the implications of an alliance between an exotic, luxury car brand and an upper class, mainstream car brand. Students may ask: • How do you create fit between both brands? • Which branding architectures are most appropriate in this situation? • How do you revitalize a nearly dead brand like Saab? Third, the case helps students understand the role of corporate communications (and corporate stories in particular) in increasing brand credibility (and thus reduce skepticism among stakeholders) after an unconventional acquisition like the Saab-Spyker deal.

PY - 2010

Y1 - 2010

N2 - The Dutch boutique sports carmaker, Spyker, acquired the Swedish carmaker Saab from General Motors (GM) in February 2010. Owing to fading fortunes across its entire business during the recent economic crisis, GM had looked to divest Saab since 2008 and eventually sold it to Spyker at a price much lower than Saab’s real worth. Although Spyker received thousands of Saab fans’ support, others doubted whether Spyker could turn Saab into a viable business. The scepticism was centered on the two companies’ huge differences in sizes and the fact that neither was profitable. Spyker CEO Muller was nevertheless confident he could make Saab profitable by 2012 and restore its once iconic status, which GM had let sink. He thought it crucial to explain the logic behind his decision to those stakeholders who did not believe in the Saab-Spyker synergy. Restoring customer, dealer, investor, employee, and public confidence was his top priority in 2010.

AB - The Dutch boutique sports carmaker, Spyker, acquired the Swedish carmaker Saab from General Motors (GM) in February 2010. Owing to fading fortunes across its entire business during the recent economic crisis, GM had looked to divest Saab since 2008 and eventually sold it to Spyker at a price much lower than Saab’s real worth. Although Spyker received thousands of Saab fans’ support, others doubted whether Spyker could turn Saab into a viable business. The scepticism was centered on the two companies’ huge differences in sizes and the fact that neither was profitable. Spyker CEO Muller was nevertheless confident he could make Saab profitable by 2012 and restore its once iconic status, which GM had let sink. He thought it crucial to explain the logic behind his decision to those stakeholders who did not believe in the Saab-Spyker synergy. Restoring customer, dealer, investor, employee, and public confidence was his top priority in 2010.

M3 - Research case

ER -

Dwarf Buys Giant: Spyker’s Acquisition of Saab

Abstract

Bibliographical note

Research programs

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Cite this