Except for the faithful at Saabsunited.com, there aren’t too many left who are convinced of Saab’s success. Now, there is one less. Dubbed as “the last Swede,” Saab’s CEO Jan Ake Jonsson handed in his resignation after leading the company through what must have been six very stressful years.
Saab’s Amsterdam-listed parent, Spyker Cars, reported a full-year net loss of €218 million ($303 million) on sales of €819 million ($ 1.15 billion) for 2010 after the Dutch boutique supercar maker bought Saab from General Motors last year. Jonsson sent in the resignation letter along with the numbers.
Financial Times reports that Spyker’s Victor Muller will take over as interim CEO until a (preferably Swedish) replacement is found. Muller will have a hard time finding a candidate for the ejection seat.
“There is so much cynicism that if I say something is red, people think it must be black,” Muller told the Financial Times.
It’s the other way round. If Muller says numbers will be black, people see red.
Saab sold just under 32,000 cars last year, down from a peak of 130,000 in 2006. Saab wants to sell 80,000 cars this year, a goal which Muller concedes is “a stretch.”
Muller said that he hopes that Russian entrepreneur and alleged organized crime figure Vladimir Antonov will return to Spyker as a big investor “sooner or later.”
With friends like these …
Gosh, TTAC really does love to rag away at SAAB. Every single review, every single article.
Frankly, i have no idea if SAAB is going to succeed. But they have a strong and, for once in the class, interesting sedan as well as a good looking crossover. It is too early to look at any serious trends in sales for either of those, so I find it interesting that TTAC (despite the fact that they like the 9-5), a constant believer (and publisher) of numbers, has discerned the failure of SAAB already. Seems like more of a bias at this point than an actual, informed, opinion.
As a publisher of numbers, I can assure you that an automaker who has sold 30,000 cars, has lost $300m and has $150m line of credit left, is a walking corpse.
Bertel also conveniently forgets that the Saab assembly lines were shut down at the beginning of 2010 and that some suppliers had already destroyed their casting molds for parts. It took several months for the factory to get back online and reestablish supplier partnerships. Instead of hating on the company regardless of the news (like DI.Se seems to do with regularity), it would be nice to see people rooting for an underdog. I prefer to see the glass as half-full given that Saab still exists, has a fully funded business plan through 2013, will introduce 3 new models this year (9-4X crossover, 9-5 sedan, 9-5 SportCombi wagon), and is working on the new 9-3 (for 2012) which will include an innovative hybrid drivetrain and the return of the hatchback.
And just in case there was any doubt remaining, I am indeed one of the SU faithful. So come on over, the optimism is contagious.
What, they don’t have tooling for the 9-7x?
(Or is that just blaming the victim?)
CraigSu: The so called Saab optimists’ standard explanation of late seems to be “Nonono, the problem with Saab is not a lack of DEMAND but a lack of SUPPLY”. Supposedly, as soon as the production ramps up, cars will fly out of the dealerships’ doors. Can’t we put this theory to rest now, judging by the huge discounts – which you normally only see on models soon to be replaced – on new 9-5s, from Sweden to California. The demand is simply not there.
I would have to agree with Paul W. A short story…
I happened to be down the street from the nearest SAAB dealer this morning while my VW was getting serviced. Two months ago I had been exchanging e-mail offers with the SAAB dealer for a factory demo 2010 SAAB 9-3 with 13K miles. MSRP was $38K and I was offering $17K. The dealer’s last counter was $19K. I decided I would walk down to see if the car was still there – it wasn’t. It had sold a week ago but I don’t know for how much.
They did have a 2011 9-3 manual transmission (13 miles on the odometer) with a MSRP of $33K. They indicated they could let it go for something in the low-to-mid $20K range. I test drove it and realized I had overly romanticized my previous SAAB ownership (a ’99 9-3 and an ’04 9-3SS) – the car simply wasn’t even competitive with other cars in the low $20K range.
They also had a 2010 9-5 on the floor with a MSRP of $50K. It was red-tagged at $41K. I am pretty sure an offer of $39K would have been quickly accepted.
Desperate times at this SAAB dealer… which wasn’t busy, didn’t have a lot of inventory and didn’t look “long for this world”. I loved my SAABs but would never own another.
Paul W: Not all of the Saab faithful are Pollyannas, whistling happy tunes waiting for the masses to buy Saabs. We know there is still a hard road ahead, but to summarily dismiss Saab’s chances when they’ve had only a year to recover from a complete shutdown by GM is, I believe, disingenuous. There are a lot of people working very hard to make Saab able to stand on solid financial ground.
Going forward the intent is that Saab will leverage relationships with other companies to more quickly get in the black. The most well-known example of this is the agreement to use BMW’s new 1.6 litre engine rather than developing their own. Of course, the Saab engineers will put their own spin on this engine and tweak it to their needs/desires. This is in keeping with Saab tradition pre-GM. These types of agreements are essential for Saab to be able to survive and thrive as a niche automaker. They’re not looking to be the next Toyota or VW. They know where their place is in the automotive world.
I’m simply not willing to give up on the brand when they’re just starting to climb out of the hole. Will Saab survive? Only time will tell, but I’m one of those willing to give them the time. They have a great deal of interesting technology in the pipeline for the 9-3 replacement due in 2012. If they can become innovators then I believe they will succeed. If not, then they will take their place in the dustbin of automotive history along with the other defunct marques. Even with a fully funded business plan through 2013 the clock is ticking, but it hasn’t run out yet. I remain hopeful.
It’s the two AA’s in the middle. Drives them nuts. Doesn’t look like it’s spelled right.
And just days ago the new vice president of Saab decided to back out before he had even started! The Swedish National Debt Office is getting worried – and rightfully so – about what’s actually going on at Saab and is demanding an explanation. Hold on to that tax payer money, I say.
Bertel, what do you say to those who are claiming that “Jonsson’s departure has been planned for a long time, he just wants to spend more time with his family. This is not a case of rats jumping a sinking ship.”,
and “Once the 9-5 station wagon goes on sale, Saab sales numbers will skyrocket and everything will be fine”.
I’d love to hear your take on it.
“Once the 9-5 station wagon goes on sale, Saab sales numbers will skyrocket and everything will be fine”
Sounds like the right ship at the wrong port. I like Saab, and I love hatchbacks/wagons, but I’m in the vast minority and in the US it’s almost impossible to sell wagons, especially FWD ones, so those sales numbers are going to have to come from somewhere else. I wish them well but, to continue with the nautical metaphors, the ship has already sailed on all the niches they are currently chasing.
@sitting@home: You are correct, the 9-5 SC (wagon) will not sell as well in the US as in other parts of the world. That’s what the 9-4X crossover is for, the (North & South) American market. The EU (UK and Scandinavia in particular) are where the wagon will sell well.
EDIT: I almost forgot, the recent agreement that Saab made with a Brazilian distributor will be very beneficial for the 9-4X. Due to trade agreements already in place any vehicle made in Mexico that’s imported into Brazil (maybe all of SA) comes in tariff-free. Since the 9-4X is made in Mexico (along with the Cadillac SRX) that gives it a unique price advantage against the likes of the Audi Q-series and the BMW X-series which will be its primary competitors.
“You are correct, the 9-5 SC (wagon) will not sell as well in the US as in other parts of the world. That’s what the 9-4X crossover is for, the (North & South) American market. The EU (UK and Scandinavia in particular) are where the wagon will sell well.”
So Saab will sell wagons in Scandinavia, but how many. And UK, the new 9-5 is more than 5meters long. Will they buy that in UK?
THe 9-4X is a Mexican Cadillac SRX, will not sell at all.
Saab has said they will keep on concentrating on the Scandianvian, UK and American market. IMO it would be better to forget that and take a chance on Russia and China.
Gunnar: You’re spot on with the focus on Russia and China. Saab just recently cemented distribution agreements for both of those countries. The only BRIC member left is India and that appears to be a tall order for any manufacturer.
I respectfully disagree re: the 9-4X. I believe it has the better chance of selling in the US versus the 9-5 SC. I don’t understand what I presume to be a slur: Mexican Cadillac SRX. Both the SRX and 9-4X are made in Mexico. You seem to imply that one will be made better than the other.
This brand is probably hopeless. Better ditch it and start another one from scratch.
In the car business, everything is about scale.
Supposedly, you need to make 5 million units to survive. O.k., a Daimler or a BMW survives on a million and change,
In the trade, 30,000 units, even the “a stretch” 80,000 units is a death sentence. A Chinese parts manufacturer laughs at you if you order 30,000 parts. A twenty foot container holds 12,000 brake pad sets. You won’t get a call back if you order only two containers.
To develop, test, and certify any given part costs the same, whether you make 100 pieces or 3 million. You want to make 3 million to amortize the cost.
It is much easier to make money on a handful of supercars where money is no object than on mass market cars. Muller never made money with the supercars.
I don’t “forget” that the manufacturers already had destroyed the molds. If they did, even worse. The market doesn’t have compassion for missing molds.
If Saab couldn’t make it with access to GM’s platforms and parts bins, I don’t see how they can make it on their own. Even Lexus, Infiniti, Acura and Audi would all be hard pressed to survive as stand alone companies.
Volvo at least has the whole booming Chinese market thing going for them at a time when Volvo is a home team from China’s perspective.
Saab? Saab has nothing going for it to enable it to compete in the “near luxury” market segment.
Lets not forget, Messr. Schmitt, that Saab basically taught GM how to make 4-bangers and turbos…Buick?? is the NEW Saab? Regals are near 100% Deutschland…at least the 95s four is made in Tonawanda. Thats in NEW YORK.
Glad to see the ROW figurin out this new-fangled turbo thing.
I don’t know whether to laugh or cry when the negative comments on Saab come from the US of A. All those self acclaimed car analysts (which we have over here too btw) from which I wonder on what basis they make their assumptions and cynical remarks.
As for Herr Schmitt. I don’t think your website is interested in the truth let alone writing it. It’s just ventilating cynisism for the heck of it. Nothing has ever come from it. It is born from frustration and incompetence to reach what you are now cynical about.
It sounds really funny if comments about the losses of Saab and the money invested and the poor taxpayers, come from America. If it wasn’t for government support over the last 40 (!!) years. there wouldn’t be an American car industry today!
The money invested in Saab is not even a rounding error compared to the billions of dollars put in the American car industry to keep it alive (talking about a dead man walking)
I wonder what you have thought about your piece if your job was on the line Herr Schmitt. I advise you to take a look in Detroit to see what a social mess the American car Industry has left behind. Mr Muller and all the people at Saab deserve a fair chance we think overhere. This is not America.
Selling 4 models at scale of 30,000 – 80,000 per year? What Antonov is going to do if he does not get his money back – take SAAB CEO hostage and/or whack him? In Russia people get terminated for much less.
GM shuts down brands when they sell less than 200,000. SAAB should ditch all models and try to focus on one small AFFORDABLE model like e.g. 9-2 and do not take any money from Russian mafia. Do you remember DeLorean? And he focused on just one model and before all that fierce global competition and still could not make it. And I am sure he was much more credible than Muller. Just try make one model – small, affordable $20,000 hatch-back, whatever SAAB diehards would buy. And I am not sure even in this case SAAB will survive. Even Opel cannot make money. What, $50,000 variation of Buick LaCross? Forget about it.
Lest you all forget, SAAB is also gonna need lots of moolah for marketing. Where would they get it? Even Suzuki has trouble raising cash for advertising in North America.
There is no compelling reason to buy a SAAB today. There are much better cars around, and the 9-5 is simply a GM-engineered vehicle. The new SAABs have nothing in common with the old ones. And the poster above is correct – their cars are so inferior compared to the competition due to years of neglect and lack of investment.
[p]MG Rover sold more than 30,000 units during their final year (I believe around 90,000). Aside from nostalgia or simply wanting to drive something different, only a fool would buy one with their own money today.
Make that two. SAAB sold exactly 2 units in Canada in February.
A quick check of eBay Motors shows exactly one dealer desperate/crazy enough to advertise its 2011 stock — and precisely zero bids for any of them. What does that tell you? For the love of God, let SAAB die already.
Maybe, ever so slightly, the car-buying public is getting just a tiny bit smarter. Why spend $37,000 on a gilded Malibu? At least those driving their rental-grade appliance Chevys are being honest with themselves.
True, Honda/Toyota people will never buy a SAAB. But we have been here before. I have some very cool cars in my driveway but what do I long to drive the most? My classic SAAB 900 Turbo… an old and fragile car for sure but oh so special. So, so special…
Can’t wait to see Saab go. No need to be sentimental about these things. Of course I’d have been happier if GM had taken the knee, along with Chrysler, too, but you can’t have everything, I guess. Maybe once the Obamanator is through with Libya, whoever is left over there can be forced to buy whatever is rolling off GM and Chrysler assembly lines. Especially now that they won’t be able to buy Saabs.
There has never been a compelling reason to buy a premium or near-premium car at all. It’s all about things you don’t really need, and that you can also have in a F…., a Ch…….., or a T……….. It’s just that they don’t feel like what you are used to ..and if it comes to blows, it’s always been good to have some Swedish safety technology around you.
Apart from that, I remember there were some crazy people who believed that a bike from Milwaukee was different – for reasons millions of other people just couldn’t understand. You think that’s a different story? Then you most likely belong to the millions of other people. Nothing to bother about: There are hundreds of thousands of great cars that are waiting for you – and there is no compelling reason to buy a SAAB today, tomorrow or next week.
Still, there are some people who have always known the difference – and maybe one day, you’ll sit in a SAAB and understand. Welcome to the club, then!
German safety technology trumps Swedish safety technology.
I do not see why some are against premium cars and wish to have less choice in the market. Not every one wants to drive Camry or BMW. But premium does not mean that car has to be overpriced and SAAB is overpriced. SAAB makes FWD cars based on GM platforms – why it should cost substantially more than Buick or Opel? Buick is also premium marque but it sells at reasonable price. I do not see how SAAB is better than Buick. People who want to drive SAAB are not rich and why Muller thinks that he can to screw them? People who are rich, arrogant or want to make statement about their income will rather buy Mercedes or BMW.