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With a little help, Saab could flourish…

by TimR (SaabsUnited)on July 30, 2011

CHRISTER GERLACH, a journalist and writer has published the following article in DN.se (original article here: http://www.dn.se/debatt/med-lite-hjalp-pa-vagen-har-saab-chans-att-overleva) which bring up many of the points and issues that we as a community have been trying to make for such a long time. This is a google translation that I’ve tried to clean up as much as possible, I hope enjoy the reading!

The good conditions for Saab are more than you might think. It is not just a disadvantage to be small. There are small manufacturers who survive in the global competition. Jaguar / Land Rover, Suzuki and Rolls Royce are just some examples and Saab could be one of them. Brilliant engineering has given Saab excellent engines and the world’s safest cars. The model program is broader than ever and Saab has some of the world’s most interesting designers. The company has several new partners in the pipeline. A temporary state involvement would dramatically increase the Saab’s ability to survive, writes Christer Gerlach.

Saab Automobile is in crisis. You can recognize headlines like: Crisis, shock, bankruptcy, billions, desperate hunt for money …

But the misery is another reality that gives hope – but no guarantees – for the future. It’s time to take a look at the good conditions – there are more than you might think.

Small car manufacturers survive in global competition. It is repeated as truth, but is it true? Here an example: When Ford sold Volvo it also sold British Jaguar / Land Rover. Indian mega-firm Tata bought Jaguar / Land Rover, which then together produced about 250,000 cars a year. Far fewer than the Volvo. Jaguar alone produced around 50,000 cars – about half as many as Saab in a “normal” year.

But then Tata took over the Jaguar / Land Rover sales increased by 24 percent. In three years, Jaguar / Land Rover hired 1500 new employees and now needs another thousand engineers. Jaguar / Land Rover is now making hefty profits, and Tata will invest 50 billion over the next few years.

• Saab’s new partner Chinese Pang Da with 1100 retailers can be the key to recovery for Saab. Assume that each dealer sells a car a week. That means 57,000 cars a year and a half of a normal Saab Production.

• The Russian billionaire Antonov hope to make Saab into Russia. Local production means that Saab get past high import tariffs and access to a market that will be Europe’s largest 2014th

• Saab was first to adapt the turbocharger for passenger cars. Saab is associated in a unique way with the turbo and strengthens the brand.

• Saab has one of the strongest eco-diesels. Thanks to a unique self-dual turbo able to squeeze out 180 horsepower from a diesel of just 1.9 liters, which emits 119 grams of carbon dioxide. It is a brilliant piece of engineering.

• Saab builds the world’s safest cars. Within three weeks of crash-testing of two new Saab models the American Road Agency gave both the highest rating, and appointed them to the best choice.

• Saab now has a wider range of models than they have ever had. The new 9-5 is already for sale. 9-5 wagon is ready for production. SUV 9-4X has begun shipping in the U.S.. An all-new 9-3 – Saab’s most important model – launched next year in at least two body versions. Saab engineers are sketching on a smaller model that will be called 9-2 or 9-1. There is already a developed concept for a small SUV.

• Saab still has a modern, rational and efficient factory with skilled workers and employees.

• Saab has multiple partners at once. It has a contract with BMW for the purchase of engines. Chinese carmaker Zhejiang Youngman, who wants to invest in Saab, a combined deal with Pang Da could be crucial to success.

• Saab has today one of the car world’s most interesting designers Jason Castriota. He has designed concept car Phoenix that shows how future Saabs might look like.

• Saab’s latest models receive great reviews by the foreign press. Europe’s largest motoring magazine, Auto-Image German wrote about the new 9-5: “Seldom, Saab has been so attractive as now.” The American Road & Track wrote about the new suv 9-4x: “All in all, looks and feels new, the 9-4x as a true Saab, and do well against competitors like the BMW X3 and Audi Q5. ”

• It is not only disadvantages of being small. When it says BMW, Audi, Mercedes, Lexus and Volvo in every driveway in the German, American and Chinese neighborhoods, there is room for architects, lawyers and dentists who want something different – then there is a chance for a Saab.

• There are several small or medium-sized auto plants that are successful: Mini, Suzuki, Dacia, Rolls Royce, Bentley, Lamborghini, Subaru. They are all different niche with unique profiles: sporty, four-wheel drive, luxury, cheap, small cars … That is where Saab should position themselves.

• When GM decided to close Saab there were demonstrations in countries like Germany, USA, Australia and Sweden: Save the Saab! Saab has a core of devoted fans such as Jerry Seinfeld and Jay Leno. Saab is a very strong brand – an icon.

• Saab still has talented and resourceful engineers. Despite scarce resources, they have developed excellent diesel engines, made bold interior in the new 9-5, developed the new SUV 9-4X, adapted and refined the four-wheel drive from the Swedish Haldex.

Finally: Should states buy shares in car manufacturers? What is the situation in the rest of world?

U.S. government saved General Motors from bankruptcy with a loan of 350 billion and became the owner of approximately 60 percent of the company. Today, GM is profitable again and has now started to pay back the loans and the ownership is now down to 30 percent.

Even Chrysler got state aid and thus created the conditions for Italian Fiat to buy Chrysler paid back the loan.

The U.S. government is also via GM, shareholder of Korean Daewoo, Holden Australian, German Opel and Vauxhall UK.

German state of Lower Saxony owns 13 percent stake in Volkswagen and has 20 percent of the vote. The oil-rich emirate of Qatar owns 17 percent.

Via Volkswagen, Lower Saxony and Qatar owns parts of Audi, Seat, Skoda, Lamborghini, Bugatti, Porsche, Japanese Suzuki and Scania.

French state owns 15 percent of Renault and is therefore also part owner of Volvo Trucks, Japanese, Nissan, German Daimler / Mercedes, Romanian Dacia, Samsung and Korean Russian Avto / Vaz.

A temporary state involvement in the Saab would dramatically increase chances for Saab to survive and increase confidence among foreign investors.

How much money does Saab need to get by during the worst crisis – that is until when you can start selling the new models? Five billion, seven billion? Now needs to get money quickly so that Saab can pay their suppliers and begin production of the approximately 20,000 components of a modern car.

Without these parts – no production of the Saabs, no sales and no revenue.

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Please add your comments at Saabs United here: http://www.saabsunited.com/2011/07/with-a-little-help-saab-could-flourish.html#comment-147720

March 19th Meeting: Steve's Tire (Note Location Change!)

VENUE CHANGE: This month's club meeting will now be hosted by Steve Shane of Steve's Tire. Open House with Pizza, donuts and refreshments. Steve will present exciting info on the latest tire pressure monitoring systems (TPMS) that are being installed in new cars, including SAABs. He also promises that the 2008 offerings of summer wheels and tires will be in stock and on display. This is the ideal time to look at the new summer tire choices. Don't miss this one.  COME EARLY IF YOU WANT: Steve will have pizza in for 6:30 for any early birds who want to head to his shop straight after work! 

Time: 7:30 - 9:30

Address: 1950 Hwy 7, Concord, ON (North side of Hwy 7, W of Hwy 400)

For a map click here

Club Members Ken Pavri and John Burnet Return From Targa Newfoundland 2007

John and Ken have returned from The Rock with a First In Class award as well as a Completion Medal. More pics and details will be posted soon on their Targa website.

Website Access Update

Forum registration and user access have been upgraded. Your old forum password will now work for the entire website. You can maintain a global profile and post comments to the articles on the main site. Stay tuned, there's a good number of new features to come.

Here's a first teaser: SOCCI club members can now maintain their own personal blog.
An example of what you can do with it - dip's blog.

Users and Users

Spent a whole afternoon merging user databases for the SOCCI main site and the forum. A bunch of custom SQL and some fixes in existing PHP code. Will see how it works ;]

Grand Prix of Toronto - 10% Discount (Extended to June 27th)

Until June 27th the Grand Prix of Toronto is offering club members 10% off regular ticket prices. This three-day event takes place July 6, 7 and 8 and has taken place every year at Exhibition place since 1986. It features multiple races and events, including the main Champ Car World Series race. Of special interest is that one of the support races will include a Saab 9-3 SS.

If you have been following John Lockhart’s JL Racing organization you will know that they have formed a partnership with Saab to race 9-3’s and have already established themselves as a highly competitive and formidable team. This year they will be racing in the Castrol Canadian Touring Car Championship series this year at Grand Prix of Toronto as well as at Mosport International Raceway, Shannonville Motorsport Park, and the new Calabogie Motorsport Park.

The Grand Prix are offering the discounted price for Grandstand Seating as follows:
· Gold (Section 11) including Paddock Pass - $179 (regularly $199)
· Silver (Sections 21, 22, 23) - $125 (regularly $139)
· Turn 9/10 (Section 91) - $89 (regularly $99)
· Bronze (Sections 31, 32) - $67 (regularly $75)

There is also a VIP Pass which is being offered to club members at $250 (regularly $300) which includes 3-day access to the new Lake Shore Lounge at Turn 2, VIP pit walk-thru pass and Champ Car Paddock Pass, view of closed-circuit plasma television, official program, Sunday breakfast and lunch buffet with four drink tickets. A Gold grandstand pass can be added to the VPI Pass at half-price.

To purchase tickets at the reduced price go to the “Corporate Tickets” section of www.grandprixtoronto.com and click on the corporate ticket order button. When ordering use the promotion code SAABGPT. Remember – the offer expires on June 27th, 2007!

Welcome!

Welcome to our new website! Please explore the site to learn more about what we do and what we are passionate about - Saab automobiles. This year we are offering enhanced driving schools, monthly meetings, social events, a vendor discount program, car clinics and more.

If you share our passion for Saab then be sure to visit this site often. In it you will find announcements and details on the many different club activates. The front page of the website will contain the latest club news, announcements and fresh articles. We also operate an active forum with discussions open to everyone on Saab product development, performance tuning, maintenance and repairs, parts and club activates.

We'd like to thank our club member Kroum Vassilev of AdvAge Solutions for developing a new look for this website.

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