We are delighted – Saab’s future is now secure. From today we will be concentrating all of our efforts into reviving Saab and transforming it into a sustainable and profitable company with the confidence to be bold. We will reinforce the emotional experience between Saab drivers and their cars and we will focus on Saab’s historical strengths in the fields of independent thinking, aircraft heritage, ecological performance and motorsport.
Through this acquisition we add approximately 15 euros per share in equity and 60 euros of assets. With a well funded business plan in place we are looking forward to working with Saab’s management on the realization of that plan and bringing exciting new products to our customers. Real Saabs, Saab Saabs.
Spyker CEO Victor Muller celebrates the official transfer of ownership of Saab [full release in PDF format here]. GM’s release can be found here.
In these times of bailouts, stimuli and protectionism, it’s probably a good time to remind ourselves of the basic tenets of capitalism. In short, let the free market run free and things will adjust themselves. Or so they say. If factory costs are too high, you either cut costs or move to a place that has lower costs. This is why Eastern Europe is so popular for European manufacturing companies. Cheap labor, low overheads and no tariffs due to EU membership. However, as I said earlier, when a free market is allowed to be free, things will adjust. And adjust, they have. Read More >
Fiat is acknowledging a “a collapse in orders” as Italian scrappage rebates expire, and as a result, all six Italian Fiat plants will close for two weeks [via the BBC]. The move is being justified as a break from past overproduction, with Fiat spokesfolks claiming “we’re only building to demand.” Though that might help CEO Sergio Marchionne justify his $6.5m paycheck, it couldn’t come at a worse time. Fiat is putting 30,000 employees out of work for the next 14 days, just as it faces widespread protests over the closure of its Sicilian Termini Imerese plant. With the Italian government (and even the Pope) condemning Marchionne’s decision to cut the perpetually money-losing plant, this unplanned vacation will give workers plenty of time to agitate and organize further resistance. Not that Marchionne could have avoided it. Italy’s consumer subsidies for new cars were keeping demand artificially high, and the Italian government was hoping it could offer their renewal in exchange for a Fiat commitment to the Imerese plant. But as the Wall Street Journal [sub] opines, Europe’s scrappage-swollen market has to come down to earth at some point. Just as Fiat has to rid itself of some of its terminally underperforming Italian capacity, at some point. And, as usual, there’s no time like the present.
You don’t want to be traveling in or to Europe these days. In Germany, Lufthansa’s pilots went on strike this morning, grounding 3200 planes. “The largest strike in the history of German aviation” (Die Welt) paralyzed German air traffic, and caused jams on the ground as travelers switched from planes to trains and automobiles.
Meanwhile next door in France, a nation is running out of gas. Workers at the six refineries owned by the country’s biggest oil group, Total, have been striking for more than a month. The work stoppage threatens to spread “to the two French oil refineries owned by US group Exxon Mobil, where strikes are planned for Tuesday,” reports the BBC.Read More >
After decades of “up-positioning” and premium-branding, the sudden success of cheapskate models such as the Dacia Logan has not gone unnoticed at Europe’s largest automaker Volkswagen. Czech media is abuzz with reports of a new entry model, blatantly codenamed “A Entry,” which may be part of the Skoda line-up.
Reuters cites Czech media reports that the new model could be priced around $13,650, putting it somewhere between Skoda’s smaller (Polo-based) Fabia and the larger Octavia, which sits on a PQ35 (think Golf, Jetta) platform. Priced and positioned like that, it won’t be a Logan-killer. The Dacia goes for under $10,000 MSRP.
In the meantime, rumors that VW aims a lot lower won’t die in Wolfsburg. Read More >
Nissan’s alleged premium brand Infiniti is going to the dark side…well, the less refined side. The Auto Channel reports that Infiniti are going to put a newly developed diesel power train (produced in grand alliance with Renault) into their vehicles for the European market. They are aiming to put this oil burner into the EX and FX CUV’s, and later into the M saloon. (Which is not a new watering hole. It’s what the Americans would call a sedan. Which is a town in France. Or in Australia. Or in Indiana, Kansas, Minnesota and West Virginia. You figure it out. ED)
Infiniti has been in Europe for less than a year. Jim Wright, Vice President of Infiniti Europe, compensates lack of experience with lack of shame, and with a PR-writer prone to flowery prose (always a dead give-away for wannabe-luxury:) “The sales success enjoyed by Infiniti in Europe against a backdrop of financial uncertainty proves the cars’ appeal to a discerning audience. We have established Infiniti as the luxury performance brand thanks in part to the remarkable multi-award winning VQ petrol engine that powers most of the models in the range.” (And he didn’t refer to a kitchen stove. ED) Read More >
Imagine you’re a Belgian worker at GM’s plant in Antwerp. You’ve had to endure jokes about being the “sick man” of GM Europe’s family and had the sword of Damocles hanging over you. You then get told that you’re being shut down at a time when the economy is fragile, at best. How would you feel? Bad? Angry? Helpless? Well, GM’s just about you kick you while you’re down. The BBC reports that GM Europe are going to create an extra 700 jobs at their plant at Gilwice, Poland. But wait! There’s more! The reason these new jobs have come about is because they want to increase production of GM’s new Astra model, the very car which GM Antwerp made. The Gilwice plant will now operate 24 hours a day over three shifts. Ulrich Weber, Opel Spokesperson, told the BBC that “This has been planned for a long time, and will be in operation by the middle of the year,”. I’m sure that’ll come as some comfort for the Belgian employees. However, these new jobs in Poland don’t represent a change of heart from Vauxhall/Opel. They re-iterated their plans to cut 8,300 jobs across Europe. And by “across Europe” they mean those jobs in those expensive countries like Germany, Spain and The U.K.
Do you want to believe? You’ll feel at home over at SaabsUnited.com, where the most incurable Saabtimists on the web are (still!) trying to turn their beloved brand around one comment-thread at a time. One current topic, “What to do about Saab dealer finance?” illustrates just one of the major problems facing Saab-Spyker. Other problems include, well, money. CEO Victor Muller has hinted that he’ll list the new Saab-Spyker’s shares in London and Stockholm, “to be closer to investors,” he says. Automotive News [sub] figures it’s because he needs money to develop the new model lines that have been “rumored.” At some point they might want to think about those dealer issues too. Meanwhile, Åke Svensson and Saab’s fourth quarter results epitomize the strained optimism we’ve been hearing for months now.
In the confusion of the recent Saab-Spyker deal, an interesting tidbit has flown beneath the radar until recently. Most industry news outlets [ourselves included] had reported that Spyker’s backing from Russia’s Conversbank had given GM intellectual property nightmares, and that the deal had gone through with backing from other corners. Not so, it turns out. Bloomberg [via BusinessWeek] reports that Alexander Antonov confirms his bank supplied the first $25m in payments to GM. A strange turn of events, considering Russian backing for Magna’s failed Opel bid (and GM’s attendant IP paranoia) was said to have scuttled the deal (and that didn’t even have Convers’s bizarre Chechen blood feud connection).
Diesel drivetrains have long been a crucial component to the European market’s forbidden-fruit appeal for American enthusiasts, ranking right up with station wagons and manual transmissions on the list of under-offered features in the American market. But there are signs now that Europe’s longtime infatuation with oil-burners might be drawing to a close (and not just for biodiesel). The Telegraph reports that Europe-wide diesel market share has fallen from 52 percent to 46 percent in the last 12 months, with the UK’s share dropping from about 43 percent to about 41 percent. Much of this trend is being driven by growth in the low-cost car segment, where the higher cost of diesels make them less competitive. Fears of higher repair costs for more complicated clean-diesel drivetrains and a relative undersupply of diesel fuel aren’t helping either. And just as diesel is faltering in its most important consumer market, the EU is eying a tax increase that Reuters UK says “could boost demand for gasoline at the expense of diesel.”
Fisker’s Karma won’t compete directly with Chevrolet’s Volt or Opel’s Ampera, but it will be the only other Extended Range Electric Vehicle (EREV) on the market when it goes on sale later this year. But GM isn’t taking the challenge laying down, showing this Opel “Flextreme” Concept as a vision of a Volt-based four-place coupe, a theoretical (and vaguely Lexus LF-A-inspired) challenge to Fisker’s EREV luxury four-door. Too bad Opel’s facing nearly as many challenges as Fisker is…
Reuters reports that Daimler are so smitten with Dieter Zetsche, they’ve extended his contract until 2013. By then, Zetsche will be 60 years old, and will have worked for Daimler for 37 years. “Promote the insiders” was the cry in Daimler’s headquarters, as Thomas Weber, a board member responsible for group research, also received a contract extension to 2013. In the excitement, Wolfgang Bernhard was elected to a newly-created seat on Daimler’s board of directors as well. But these votes of confidence shouldn’t be taken for granted. Daimler have some big challenges in front of them, chief of which is a lack of scale and cost competitiveness in the compact segment. Herr Zetsche did start talks with Renault, but nothing has come to fruition yet. Another big problem, particularly in the ego division, is that Daimler are falling behind BMW (and, gasp, even Audi) globally and in emerging markets like China and India. It seems that if Dieter Zetsche wants to retire at 60, he’s going to have to earn it.
As much grumbling as there is among US-based enthusiasts about increasing efficiency standards, Europe’s emissions requirements are yielding even stranger fruit than mere V6-powered Porsche Panameras. One such product of the conintental obsession with downsizing: Fiat’s new TwinAir engine, available this summer on European-spec Fiat 500s. The 900 cc turbocharged twin generates 85 horsepower while emitting fewer than 100 grams of C02 per kilometer, and uses Fiat’s much-vaunted MultiAir technology. An uprated turbo version with 105 hp will become available later, reports Edmunds, as will a 60 hp naturally-aspirated version. The only other automaker to offer a two-pot in a road car? That would be Tata, which equips its Nano with a 33 hp, 632 cc engine. Given the close ties between Tata and Fiat, could Europeans have a 100 hp+ Abarth-branded Nano in their future?
ACEA wants you to know that revised numbers of the January European sales figures have been posted. Figures have been updated in the market table (Portugal and Hungary) and the manufacturer table (Ford Group, Ford, Volvo, Others). Nothing earth shattering. The revised PDF is here. The revised Excel sheet is here.
“Toyota is considering halting production at its factory at Burnaston, near Derby, because of collapsing sales amid the car company’s recall crisis,” London’s Times reports.
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