To many peoples’ surprise, SAAB was amongst the brands that made the cut when federal bankruptcy judge Robert Gerber cleaved GM in two. Saab was owned by GM Canada. It’s now part of New GM—which is busy negotiating with The Koenigsegg Group to offload the Swedish automaker. Very little has come out of the recent negotiations re: the sale and/or the European Investment Bank (EIB) loan that Saab, GM and Koeningsegg view as a prerequisite for the deal to go down. Meanwhile, last week, SAAB CEO Jan Åke Jonsson declared “we need a cash infusion so we can boost production.” Förlåt?
At the moment, SAAB is building 100 or so cars per day—36,500 per year without holidays—at their main production facility in Trollhättan. In recent years, SAAB have averaged sales of 120,000 – 130,000 cars per year. In 2008, sales of the Swedish cars fell to 93,388, down 25 percent. And it’s getting worse.
Sales of SAAB in Sweden are down 60 to 65 percent so far, SAAB CEO JÅJ revealed in a recent interview. They fell to 4200 units during the first six months of 2009. In the US, sales during May fell 64 percent to a mere 783 units. SAAB sales in Europe dropped 66 percent to 2,191 during the same month.
Since sales of SAAB have plummeted nobody really understands why they want to boost current production levels.
Another conundrum: CEO JÅJ still seems to be talking in terms of using the EIB loans for operational expenses. The Swedish business daily newspaper Dagens Industri reckons any such move would make the loan approval more difficult to obtain. EIB loans can only be used for future projects, preferably “green” projects.
Moreover, it seems the Swedish Government is not impressed by what they have seen of the group who might well become the new owners. Last week, Jöran Hägglund, Deputy Minister of Industry was interviewed by Dagens Industri. “Jöran Hägglund replies with a smile in response to the question of how he views the new owners’ public presence (or absence).
“Then he says: ‘We have met them all, and it seems like some are more shady than others, or whatever the appropriate phrase might be. But we have made it clear to them that if they become the ultimate owners, we will conduct a thorough economic analysis of each and every one of them.’
“This process is said to have begun and evidently Hägglund’s team will be getting help from the outside. ‘We will get help from a varitey of sources, so I am sure we will get the information we need,’ says the government spokesman.”
As TTAC has reported, the deal to save SAAB is a long way from assured.
Now THIS is a dead brand!
Interesting that Saab is still part of “New GM” while Pontiac and Saturn are part of “Old GM” yet all are up for sale.
Saab is like a millstone around New GM’s neck. Or should I say “another millstone”?
The reason Saab is with “New” GM is most likely that there seems to be a fair chance of it being sold.
I am not sure Saab is a dead brand YET, because there is likely to be a political fight in Sweden concerning whether or not the State should give a cash infusion. The Government has said No, but the opposition have indicated Yes, and it is my belief that Saab CEO JAJ is trying to keep the issue alive by repeatedly mentioning cash infusions and use of EIB loans for operating expenses.
Next year there is a general election in Sweden and jobs and the economy will be the main issue. What politician will not be willing to spend half a billion USD on getting re-elected?
Interesting that Saab is still part of “New GM” while Pontiac and Saturn are part of “Old GM” yet all are up for sale.
Saab is part of new GM because it has a future (albeit one on the selling block) and could be considered as an asset. Not so much for Saturn or Pontiac.
Saab still has a future: it’s probably the least tarnished of GM’s brands and could, in the right hands, be resuscitated. It doesn’t have the stink of death that Buick (and Cadillac, at times) have, nor the fire-sale mentality of Pontiac and Saturn. In the hands of someone other than GM, someone who would actually give them a new platform more often than once every decade, they might do well
I for one will be pleased to see the back end of the same bleedin’ saab shape cars we have been seeing for ever! Technology inspired from Jets” my ar*e you call 180bhp and crap plastic trim and the same lump nose “jet inspired” ??? well Ryanair jets perhaps! (european joke, sorry USA!)
Koenisegg may save them, all they have to do is CHANGE THE FRIKKIN 30 yr old shape,!! apply some keonisegg carbon fibre to the interior touchy bits, funk up the styling and release a Bio-ethanol powered 300bhp 4×4 new saab. Easy!! and they even already know how to do all that !! Muppets.
http://ezinearticles.com/?Bioethanol-the-Green-Fuel-That-Powers-Green-Cars-From-Saab-and-Koenigsegg&id=2193108
// Sales of SAAB in Sweden are down 60 to 65 percent so far //
Two questions:
1) Is anything selling in Sweden right now given the economic downturn?
2) What brand(s) do Swedish drivers favor?
Either way it appears that GM has so spoiled the brand that it’s not even wanted in its original homeland.
Nevermind.
There’s a market for SAAB….
Who among us hasn’t secretly lusted after a SAAB convertible?
BUT what would it take to get you to pull the trigger and actually buy one?
Better quality?
Better price?
More performance?
What’s stopping YOU from buying one?
My excuse is:
1. I live in Dallas, so FWD is no advantage to me.
2. The quality is legendary mythical.
3. For the same money, I’m driving a pretty nice 3-Series.
I just think too many of us have too many good excuses not to buy one.
Lokki, for me, it’s the lack of AWD.
The 9-2X and that recent TurboX (or whatever they called it) have been the only Saabs I’d consider.
The former was in production for all of two years, and the latter was priced too high.
Dyer channels GM management:
http://blogs.automobilemag.com/6553308/editors-soapbox/dyer-consequences-saab-for-sale/index.html
A couple of reasons why they would be looking at increasing production…
1. Magna is no longer producing the 93 Convertible in Germany, and SAAB is bringing it production back to Trollhattan. This requires more numbers to catch up on convertible orders that will have piled up for 6 months (an also more money to get the plant tooled for the convertible)
2. The Production has to start for the new 95 model which is ready to go (and has already had unbelievable reviews from the mules), and also for the newly refined 93x models. Oh ya, there is also a brand new compact SUV (the 94) which is ready to be produced.
3. Shortly after the news of SAAB being up for sale (remember that they were one of the first to be on the block), GM decided to put HEAVY incentives on the cars (Between 11k and 13k off MSRP in Canada). Couple this with GMAC’s 0% financing rate (or in hours dealer leasing), it created a boom for SAAB sales (at least in Canada) to the point that there were absolutely no new SAABs left in Canada. People would come in with cash, and be told that it would be 2 to 3 months before they can get a car.
That certainly doesn’t sound like a “dead” brand to me. Especially when this was done when SAAB was already going through the equivalent of a Chapter 11. All of the other ill-fated brands saw their inventories grow beyond belief in this situation.
IMHO, They are definately a strong (although unique) brand, and it is widely believed that they have suffered at the creative reporting/book-keeping of GM for quite some time now. It shoudl be interesting to see what happens when they are completely out from under GM.
Vorenus,
There has been an AWD version of the 93 (and not just the Turbo X Version) for almost a year.
2) What brand(s) do Swedish drivers favor?
Blondes
same2you, true, but the TurboX had the power, at least.
Hey atleast Saab still has some of the best OEM seats in the business.
BUT what would it take to get you to pull the trigger and actually buy one?
I lusted after SAABS before GM got involved. But I was in college and had not the funds to purchase. Then, practically AT THE MOMENT I could afford a SAAB…GM redesigned the 9-3 and removed the possibility of a hatch. For me, a SAAB always had a hatch.
So I moved on and abandoned my SAAB desire. Nice job GM.
Now, if The Swedes take SAAB back and turn the cars back into the SAABness they once were (i.e. 4 cyl, hatch), I just might have to reconsider buying one.
If Saab were a person with any pride, it would kill itself now to avoid further humiliation. In less than a decade Saab devolved from “innovative, fun, and built like tanks” to “boring badge-engineered lemons.”
My dad was a Saab guy for almost 20 years, but they’ve lost him forever.
It’s interesting that, when reading this post, one of the ads on the right says, in big letters, “DIVORCE”.
Samuel L. Bronkowitz asked what kind of cars are driven in Sweden. Well, here’s the list of cars sold in Sweden the first six months. You will find the Swedes are quite nationalistic. Here’s the Top 10
1 VOLVO V70
2 VOLVO V50
3 VW GOLF
4 VW PASSAT
5 SAAB 9−3
6 KIA CEE’D
7 FORD FOCUS
8 BMW 3−SERIES
9 AUDI A4
10 TOYOTA AVENSIS
For details and the FULL Top 100, go to
http://www.bilsweden.se/web/Topplistan_juni_2009.aspx
Press “Hämta”
I enclose the following dictionary:
100 I TOPP = Top 100
PB SEDAN OCH KOMBI = Automobiles, sedans and hatchbacks/stationwagons
MÅNAD 06 2009 = Month June 2009
SIDA 1 = Page 1
MÄRKE / MODELL = Manufacturer / Model
FÖRÄNDRING % Change percent
MARKN.ANDEL = Mrkt share
Well, I put my money where my mouth was and bought a new Saab. An leftover ’08 9-3 SportCombi 2.0T with 6spd stick. Fantastic car, faster than anyone has any need of going while getting low 30’s mpg on highway trips. The ride/handling balance is phenomenal – the best of any FWD car I have ever driven. It’s not a go-kart like a MINI, but it rides really nicely. It’s quiet, swift, and efficient.
No, it’s not perfect. The back seat is a little cramped, I’m not wild about the ’08 facelift, and the platform is getting a little old in the tooth (though light-years ahead of the ancient 9-5).
What got me to sign on the dotted line? The price, of course! At nearly $35K MSRP there is no way, no how. But after various discounts and rebates, I paid $22.9K. And I only paid that much because I insisted on a (very rare) manual transmission. I could have had an equivelant automatic for ~$20K, in my choice of colors. At the price it was a no-brainer.
A friend just bought an 08 9-3 convertible, auto, for about $30k. It replaced an 02 Cadillac DTS and he’d had an ETC before. I’m not exactly sure what drew him to it except that he likes a car that’s not too common and he said it was great fun to drive while turning in great mpg.
I only got to take it for a short spin, but I thought the tilt steering lever was ridiculously flimsy and the door pull, since it’s made of a few parts sandwiched together, squirms around a bit and creaks when gripped. That didn’t inspire much confidence but it’s his car and he likes it so there.
Local Saab/Saturn dealer is all out of new Saabs here in Nova Scotia. Sold 25 in the last couple of months. Can’t get any more to sell.
Now with $8 to 12K off, perhaps it found the price level at which people would raid their bank accounts to get one. So the old price was obviously 20% too high, something Saab will have to keep in mind if they ever make it back as a going concern.
It’s spelled “Koenigsegg.”
Saab still has a future: it’s probably the least tarnished of GM’s brands and could, in the right hands, be resuscitated.
You’re kidding, right?
Saab is the definition of a dead brand. It has even less of a reason to exist then Chrysler or Hummer. The alledgedly “unique” appeal of its products ceased being relevant around about 1993 or so. I seriously have no idea why some people around here have so much fondness for new (or even older) Saabs. Mazda and Subaru have been better at doing whatever Saab supposedly did well for decades.
If (as you say) Buick and Cadillac have the “stink of death” about them, then Saab is a corpse that’s been rotting so long it doesn’t even stink anymore. Frankly, who the hell cares if it disappears?
SAAB may well be a dead brand in the US. But I’m sure it’s got some life left in it as one of the 2 “local” brands in Sweden, and as an upper-midrange brand in Europe in general, and as a Euro-import brand in other places in the world (China? Does Saab sell there at the moment? I don’t think so…S. America?) where it can use “European premiumness/quirkiness” as a selling point. All of this depends, however, on it getting as far away from GM as possible. Then, if it recaptures some of its old self, a comeback to the US could be possible in a few years. Heck, if FIAT is coming back over, why not SAAB at some point in the future?