Swade

An open letter from Saab Automobile

It would be a significant understatement to say that the last weeks have been challenging for Saab Automobile.

We are a car company. Designing and building distinctive cars according to a well honed, Swedish philosophy is what we do. And yet our production line – the beating heart of our company – has been idle for the last five weeks.

Though no-one’s fault but our own, we found ourselves in a cashflow crisis and unable to buy the parts we need to build our cars. This has hurt our dealers, our suppliers, our employees and many of our customers, a situation for which we are truly sorry. We want nothing more than to secure our financial position so that we can get to building cars again.

On May 3, we announced a deal with Hawtai Motor Group, a vehicle manufacturer from China. This deal would have included an ownership stake for Hawtai and significantly, an opportunity to develop Saab manufacturing in China, the new automotive frontier. This deal collapsed late last week due to an inability to secure the required regulatory approvals for it to proceed. This was a significant blow for us, however we persisted with partnership talks in China, which we see as an essential step in securing Saab’s future.

On May 16, we announced the signing of a memorandum of understanding with Pang Da Automobile Trade Co. Pang Da is the largest publicly traded sales and service distributor in the Chinese market, with over 1,100 outlets in China and Mongolia. The MoU includes strategic deals for distribution, branding and potential future joint ventures in manufacturing.

Perhaps even more importantly for our immediate future, Pang Da have placed an order for approximately 1,300 vehicles, with immediate payment to be made for these vehicles. A further order can be placed in the near term, subject to certain conditions.

This cash injection is important for Saab, not only as a vote of confidence in our brand portfolio, but also as a much-needed cash injection that will enable us to get our plant operational again.

With this and other cash injections in place, Saab Automobile will be well placed to initiate negotiations with our 1,200+ suppliers. These negotiations are intended to provide full payment for outstanding amounts at regular intervals and within a specified time period – and they are crucial to getting the supply chain moving, and our plant and our business operational once again.

Saab already has an order bank of nearly 5,000 vehicles for the Trollhättan factory. These are cars that are ordered and awaiting delivery to dealers and customers. These are cars that will see our cash position improve as soon as they leave the factory. We will also have the initial order from Pang Da to build, as well as the potential secondary order. These orders would take our order bank to well over 6,000 vehicles for our Swedish plant.

In addition, we are also pleased to report that orders of the new Saab 9-4x crossover vehicle are very strong, coming on the back of very favourable reviews from our recent Saab 9-4x press event in Washington DC. The Saab 9-4x is intended primarily for the North American market and US magazine, Winding Road, said “the driving dynamics of the 9-4x are positively brilliant”. The Saab 9-4x has also attracted praise from markets outside of North America. Robert Collin from Sweden’s Aftonbladet called it “the best Saab ever built”, noting the crucial role Saab played as the architects of the vehicle. The Saab 9-4x is indicative of the future for Saab Automobile. Dynamic. Exciting. Engaging.

In addition to the Saab 9-4x, the new Saab 9-3 Griffin range is the most fuel-efficient 9-3 range we’ve ever offered, featuring a diesel range specially developed to offer road tax advantages for a number of significant European markets. Our new 9-3 petrol engines offer the best combination of fuel efficiency and power in their class. We also have our new flagship Saab 9-5 Sedan and the all-new Saab 9-5 SportCombi coming later in 2011, which is going to deliver a new level of practicality to Saab 9-5 customers around the world.

Our vehicle range is constantly expanding and improving. More than that, we have new vehicles and groundbreaking innovations coming very soon, things that we believe will excite our customers everywhere. We are working on partnerships that will take us to new places, with new technologies to make driving safer, more enjoyable, more economical and more ecologically responsible.

The Saab Spirit that built this company remains strong and we cannot help but be excited by the future.

We thank you for your patience and we ask for your continued support.

Signed:

Kjell ac Bergström – Vice President Product Development Powertrain

Gunnar Brunius – Vice President Purchasing & Manufacturing

Mats Fägerhag – Vice President Vehicle Product Development

Matthias Seidl – Vice President Global Sales & Aftersales

Anders Svensson – Vice President Vehicle Lines

Knut Simonsson – Vice President Brand & Marketing

Poll: If you could buy a brand new classic Saab…..

You don’t get to be as well-loved as what Saab is without having touched a few hearts over the years. Whilst we’re all about new Saabs here at Inside Saab, we know that inside the heart of any Saab enthusiast there’s a place for the classics.

This week’s poll therefore has a touch of nostalgia to it. What if you could flick a switch and get Saab to start building any of the historic models once again? Brand new cars, just as they were sold in the past but with brand new materials. Which model would you choose?

I’ve picked nine models from Saab’s previous generation vehicles for you to choose from. Vote for your favourite, or if you prefer something unlisted, let us know in comments.

Here’s the poll, and there’s a little about the chosen cars below…..

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[poll id=”3″]

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Keep reading to check out a brief on all the individual cars in the poll……

Continue reading Poll: If you could buy a brand new classic Saab…..

Saab at Mille Miglia – a fan’s view

We’ll have some material on the Mille Miglia from the inside perspective tomorrow.

Today, though, I’d like to draw your attention to an absolutely brilliant collection of photos from the Mille Miglia, taken by some Saab fans in Italy.

Saabnews.it is an Italian Saab fan site and it’s typical of why Saab enthusiasts are the best automotive enthusiasts in the world. The dedication of the average Saab fan is without peer and the collection of photos from this event by the moderators at Saabnews.it is a prime example.

I’ve posted a few photos below with their permission, but please head on over and view the full collection for yourself. You’ll be AMAZED by the number of shots there:

2011 Mille Miglia at Saabnews.it

Click to enlarge.

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Saab 9-4x is in production

This is just a short one, but when I heard it an hour or so ago, I figured it was one of those little milestones that ought to be mentioned.

It’s with no small amount of joy that I can point out to you that production of the 2011 model year Saab 9-4x started on Monday 16th of May.

The 2011 models were all ordered by Saab dealers back in February and the model year’s entire production run is completely accounted for. Production of 2012 models will begin in a few months from now.

Vive la 9-4x!

Saab Design chief Jason Castriota named as one of the Top 100 creative people in business

Jason Castriota, Saab’s Executive Director – Design, has been honored by Fast Company Magazine as one of their Top 100 Creative People in Business for 2011.

The Fast Company list of 100 Most Creative People spans entertainment to medicine to technology to social enterprise. People honored in 2010 include artists Lady Gaga and Jay-Z, thinkers such as Chris Andersen from TED Conferences and various executives from Nike, Nokia, Microsoft and Nissan.

Jason Castriota was appointed the head of Saab Design in June 2010. Prior to this appointment he had previously held positions as Design Director at Stile Bertone and Chief Designer, Special Projects at Pininfarina. He began his own US-based design consultancy business prior to taking up the position at Saab Automobile.

Jason Castriota’s first public design statement at Saab was the PhoeniX concept vehicle, which debuted at the Geneva Motor Show in March 2011. He is now leading the design execution for the new Saab 9-3, which is expected for release in the final quarter of 2012.

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Saab 9-4x – reviews at a glance

Saab recently hosted members of the automotive press in Washington DC. Their mission – to drive the all new Saab 9-4x crossover.

It’s fair to say that the reviews have been very positive for the Saab 9-4x. It’s been noticed in Saab-land, too. Just Saab, a dealer in Ohio, tweeted the following this morning:

In over 16 years with Saab, I cannot recall better press toward a new model than the new 9-4x. It’s almost euphoric. Great Job Saab team!

Naturally, we’re pretty happy with the outcome of the road reviews. And we’re equally happy that our dealer network and customers are excited about it, too. This is a vehicle that Saab has needed for some time and we’ve finally done it, and more importantly, we’ve done it right.

You should rarely take one review as the chapter-and-verse about a vehicle. Different reviewrs have a different emphasis. Accordingly, here’s a sample of some of the reviews that have come online recently. We recommend that you check them out at your leisure:

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Autoblog: “From its cantilevered roof to its sweeping “hockey stick” greenhouse, ice-block blue headlamps and full-width LED taillamp band that echoes that of the 9-5 sedan, Saab has done a remarkable job imbuing brand hallmarks old and new into this simple two-box form…..

…..the 9-4X clearly skews toward the sportier end of the luxury crossover arena, eschewing leather-lined kinschleppers like the Lexus RX and Volvo XC60 in favor of chasing sportier entries like the Audi Q5, Mercedes-Benz GLK, and BMW X3.”

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AutoGuide: “Saab hasn’t been cruising on easy street, but the 9-4X could be the x-factor that changes negatives into positives.”

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Car and Driver: C&D took a comparative approach, looking at the 9-4x in comparison with it’s sister vehicle at Cadillac, noting that Saab engineer Peter Dörrich was the chief architect behind both vehicles. You can see Peter’s view on the “Saabness” of this vehicle in this video, shot in Los Angeles last year.

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LeftLane News: “Unlike the SRX, the 9-4X’s steering felt linear and direct, if a little light on feel. Reactions were quick at any speed, with positive turn-in and good straight line stability. Despite the Aero’s big 20-inch wheels wrapped in performance-oriented tires, the 9-4X was nearly silent on the highway. That bling hardly disturbed ride quality, either, which was several notches above the SRX. Where the Cadillac is wooden and confused over undulating surfaces, the 9-4X happily took anything in stride. Body lean is modest, as it should be in a soft-riding crossover.”

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Motor Authority: “Cargo-wise, there’s lots to love here. Although the floor is a bit taller than you might expect, there’s a ‘hidden’ compartment under a large portion of it; rear seatbacks also fold flat, and they can be adjusted for rake to three different positions. The cargo management system is very useful, with a bar that can be configured to split part of the space off—to keep grocery bags from tipping, or suitcases from sliding around the space.”

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Winding Road: “The controls enhance this feeling of refined responsiveness. The steering has a well-chosen ratio with decent on-center operation. The brakes are firm, with a pedal feel that should be studied by some sports car makers. Best of all, the automatic transmission, especially in sport mode, anticipates the downshift you will need so that you seem to be in the right gear for acceleration much of the time.”

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Victor Muller addresses Saab workforce

Saab Chairman, Victor Muller, addressed the assembled Saab workforce at 12:30pm today.

UPDATE: Notes from Victor Muller’s address are now posted below.

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Notes from the address by Victor Muller to Saab employees – Tuesday 17 May

– Victor began the address with a heartfelt apology to staff for having put them in this position. He mentioned a commitment made to Jan-Ake Jonsson when they made the Saab purchase that they would not let this company slide and he is very mindful of that commitment. Of course, this is a different situation to the purchase, however, because now Saab are their own masters.

– “I got us here. I’ll get us out”. There was a definite feeling of personal responsibility in the address.

– VM was heartened by the good news that Saab has received through this situation, the reviews of the Saab 9-4x from the drive event in Washington DC, in particular. Whilst it’s been a bad time for Saab, there have been encouraging things happening on the product side.

– In speaking about press coverage of the situation, VM said that whilst the press have applied a high level of scrutiny to Saab, the only reason they’ve been able to do this is because we gave them the opportunity to do so.

– On the collapse of the Hawtai deal, VM indicated that there were a number of potential suitors at the time the deal was done. Hawtai had great potential but the deal was ultimately thwarted by the regulatory structure and the challenges that would provide to getting the deal done in a timely manner. Indicated that Hawtai executives were heartbroken when they had to advise that they couldn’t complete the deal.

– The collapse of this deal was quite unfortunate, but it did give Saab the opportunity to learn from it and construct a better deal second time around.

– Pang Da will make for an incredibly good partner and their focus on sales and distribution should mean more business for Saab, plus the opportunity to execute parts of the deal straight away such as the commitment to purchase cars straight away. Buying cars is Pang Da’s business and does not require regulatory approval, which is the benefit of this deal for Saab at this time.

– It is too early to say what the medium-long term ramifications of the recent stoppage will be for Saab, but as well as challenges, there are also opportunities and the deal with Pang Da presents such opportunities.

– The required negotiations with suppliers, as well as supplier ramp-up time mean that it could take several weeks for production to recommence.

– VM is mindful of the fact that Saab operates in a glasshouse environment, where everyone is watching what we are doing. We have to take steps and build strength in the organisation so that we are protected from this sort of situation ever happening again.

– As with the sale process from GM, the recent situation has demonstrated the loyalty and commitment of Saab employees once again. VM expressed a profound gratitude for their loyalty and vowed to reward it with a healthier company. He will continue to source deals and partners that can assist in building stability into the Saab business.

– His final words: “Never, ever give up”

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Saabs United Days a success

I got back from Australia in to Trollhattan on Saturday evening, just in time to take in Day 2 of the Saabs United Days event on the weekend.

Saabs United Days was a gathering organised by the Saabs United website, aimed at giving a chance for readers of the website to get together, share some Saab experiences and attend various presentations to give them a better understanding of the Saab company and brand.

Day 1 was conducted mostly at ANA, which is arguably the largest and most trafficked Saab dealership in the world, located right here in Trollhattan (the new Saab of North Olmstead showroom in the US might be the single point of argument about size).

There were plenty of new Saabs to test drive. All variations of the new Saab 9-5 were on offer so that people who’d previously not had a chance could get to sample the new Saab 9-5 Sedan range. Attendees also got an exclusive small-setting opportunity to spend some significant time with the new Saab 9-5 SportCombi and the new Saab 9-4x, neither of which are released to world markets just yet.

Reports say that a number of vehicles were sold at ANA on the weekend, which is a great outcome for both ANA and Saabs United.

I joined the group for Day 2 of the event, which was hosted at the Saab Museum in Trollhattan. Aside from the opportunity to check out the various historical Saabs in display (with free entry for SU Days attendees), there were also a couple of presentations made giving people an insight into how Saab operates as a company.

A team from the Saab Technical Development center presented on how Saab use modelling and simulation to enhance the model development process. Everything from design to supply and even safety is enhanced by Saab’s greater use of modelling techniques. In fact, where Saab used to build mules every six months to test a generational change in the development cycle of vehicle, they can now test significant changes to development vehicles every six weeks using computer simulations.

This presentation also included a segment about the Saab IQon vehicle entertainment and integration system. The IQon system drew a great amount of interest at the Geneva Salon when it was unveiled earlier this year and that interest level hasn’t dropped off at all, with plenty of questions in the group Q&A session that followed being about IQon in particular.

The second presenation addressed Saab’s production facility – how Saab actually goes about making cars. We had a photographic tour around the factory, as well as some detailed insights into how Saab use ‘Lean’ production methods to constantly improve their production process. It was a very intensive presentation and one for the real Saab die-hards, but an incredibly interesting perspective nonetheless.

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I’ve been writing about the Saab company for over six years now, until recently that was on the Saabs United website. One of the great aspects about Saab is the community that surrounds it – a very dedicated and passionate group of people who want to know more about Saab and why we do the things we do.

It’s easy to think of this gathering as being just a group of car nuts, but the fact that people were willing to travel from England, Finland and Holland to attend something organised by other fans just like them is indicative of the passion people have for the company.

I’d have to rate the first Saabs United Days an outstanding success. The fact that people are willing to organise and attend such an event is something that we at Saab really appreciate. It’s also a feather in the cap of the organisers and attendees, the people who are always needed to make such an event a success.

If you’ve got an event like this happening in your local area, please do contact me so that I can add it to the Events page on this site. I might even be able to get along and say Hi if the schedule works!

Photos by Rune at Saabs United. Used by permission.

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About Pang Da Automobile Trade Co

Saab has signed a Memorandum of Understanding with Pang Da, otherwise known as the Pang Da Automobile Trade Co.

Interested Saab fans might be asking who is this most recent of suitors for Saab Automobile? Here’s a little of what I’ve been able to find:

Pang Da are essentially an automobile sales and service company. They are publicly listed, having raised close to billion in an IPO earlier this year, China’s second largest IPO for 2011 so far.
Pang Da have a sales, service and affiliate distribution network of more than 1,100 outlets across China and Mongolia.
In 2010, the company was ranked amongst the top 200 enterprises in China, and in the Top 100 service enterprises. It has consistently been listed first amongst automotive service organisations in China.
The company is based in Tangshan City, Hebei Province, around 150km east of Beijing.
As well as a number of domestic Chinese brands, Pang Da also distribute and service Toyota, Subaru, Audi, Mercedes Benz, Mazda and Honda vehicles in China.

Under the terms of the MoU signed between Saab and Pang Da, the deal is still contingent on certain conditions being fulfilled and documentation completed. There is still some distance to go, however it’s good to become acquainted with a potential future partner.

Press release: Saab Automobile and Spyker Enter Into MOU With Pang Da Automobile On Distribution/Manufacturing Partnership For China And Equity Participation

Trollhättan, Sweden – Spyker Cars N.V. (Spyker) announces today that Spyker and Saab Automobile AB (Saab Automobile) signed a Memorandum of Understanding (MoU) with Pang Da Automobile Trade Co., Ltd (Pang Da), China’s largest publicly traded automobile distributor with over 1100 dealerships nationwide. The MoU includes a strategic alliance consisting of a 50/50 distribution joint venture and a manufacturing joint venture (MJV) for Saab branded vehicles as well as for an MJV-owned brand (the so-called ‘child brand’) in China. Saab Automobile will have up to 50 percent in the MJV, with Pang Da and a to-be-selected manufacturing partner owning the remaining shares.

Pang Da shall make a EUR 30 million payment for the purchase of Saab vehicles and is expected to make an additional EUR 15 million for the purchase of more Saab vehicles within 30 days subject to certain circumstances. Additionally, Pang Da will take an equity stake in Spyker for a total amount of EUR 65 million at EUR 4.19 per share (the weighted average of the ten last trading days), representing 24 percent of Spyker on a fully diluted basis, and will have the right to nominate a member of the Supervisory Board of Spyker and /or the Board of Saab Automobile.

Spyker, Saab Automobile and Pang Da signed an MoU on the formation of a joint ventures with respect to distribution and manufacturing in the Greater China market, subject to definitive transaction documentation and certain regulatory approvals.
Pursuant to the MoU, Pang Da will transfer EUR 30 million to Saab Automobile as payment for the purchase of Saab vehicles and an additional EUR 15 million within 30 days for the purchase of additional vehicles depending on certain circumstances.
Pang Da will take an equity participation in Spyker for a total amount of EUR 65 million at EUR 4.19 per share representing up to 24 percent of Spyker’s outstanding share capital on a fully diluted basis.

The MoU between Spyker, Saab Automobile and Pang Da contains the principles on which the parties will establish a 50/50 joint venture for the distribution of Saab-branded vehicles in China.

Continue reading Press release: Saab Automobile and Spyker Enter Into MOU With Pang Da Automobile On Distribution/Manufacturing Partnership For China And Equity Participation