“The rise in forecast values for the Saab 9-3 over the last ten months has been driven by an increased confidence in the brand; allied to an improved product content creating a better future used car,”
We were all pretty pleased to see that quote in a report in the motoring press today, commenting about the fact that Saab’s residuals have improved by around £1,000 in the British market place. (The report is based on a Saab GB press release, which you can view here for the full facts).
The improvement is said to be based on several factors. The first is some renewed interest and increased confidence in the Saab brand since it became an independent brand under the ownership of Spyker Cars.
More specifically, there is also the desirability of the new Saab 9-3 TTiD range, which offers a full-sized, powerful Saloon or SportWagon with the benefits of emissions under 120g/km. Low emissions means big taxation benefits for customers and Saab’s corporate customers are taking notice.
How much notice? Saab’s sales in Great Britain were up 73.1% in the first quarter of this year and Saab GB have had to increase the size of their corporate sales team to deal with the increased demand.
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A few days ago, in a post called Relief and Determination, I wrote about my belief in the future of Saab Automobile, based on the fact that there was just too much good stuff going on at this company, and too many people interested in it, for it to shut down.
You can call the type of innovation and success reflected in this story “Exhibit A”. Saab are making great products for markets around the world. I really believe that the Saab 9-4x is going to have a similar effect on Saab dealers in the US has what the sub-120g 9-3 range has had for British dealers.
Bottom line: there’s a lot of incredible stuff happening at Saab. We just need to tell people about it more and show them the product. It’s all about the product.
Greetings from Hong Kong! I’m on my way back to Australia for a week or so. It’ll be great to be home again.
We had a cold snap in Trollhattan just before I left. I had to walk to the bus stop amongst falling snow a few days ago. Snow!! In May!!?? I guess we’re not in Kansas anymore….
Anyhow, given that I’m now slightly out of touch with what’s going on there in Trollywood (until I get home, at least), I thought I’d share a few stories I’ve heard over the last week or so. Being in Saab’s home town, you get to meet a few people who have been around the company for a long, long time. Even if they don’t work there, they still seem to be part of the Saab family simply because they’ve got so much shared history with the company and its people.
I’ve met a few people like that recently. One of them I’d like to meet again, with my camera, so that I can take a few photos and share his story properly.
Others have shared a few short stories, which I’d like to pass on here because they made me laugh, made me smile, just made me feel good.
The first one comes from taxi driver yesterday. He’s been doing the corporate run between Trollhattan and Landvetter airport for too many years to remember and he told me a bunch of stories yesterday. The one I’d like to share is more like a quote than a story.
We were talking about the recent troubles at Saab and he said
“I tend to see Saab the same as I see my grandson. He never knew that he couldn’t swim, so he just went in and started swimming. Saab are the same. They can’t imagine that they can’t survive, so they just do.”
How true.
The second is another short snippet about the Saab 99 and the effects it had on people back in its day. I was at dinner a few nights ago and talking with a guy who I’d guess would be in his early-mid 50s now. He was a youngster in the late 1960s when the Saab 99 was released and his father was choosing between that and something new that Volvo had released at the time.
He chose the Saab and ended up getting a new one most years from the early 1970s onwards.
Around 1972, the family had their new 99 and they went on a trip from Sweden down to Austria and Germany. When they pulled into a service area in Germany to fill up the car and stretch their legs, everyone – everyone – in the service area came over to look at the Saab. They were particularly curious about one item. Everyone wanted to see…….
……..those fantastic new headlamp washers and wipers in action!
The car was a hit everywhere they went and I guess it cemented the Saab-buying habit in the family. A few years later, they bought a 99EMS and my friend had just got his driver’s licence. Naturally, he tried to borrow his father’s car whenever he could.
“It became very easy to offer the girls a lift in that car and have them accept……”
🙂
Saab – inspiring people and easing them into relationships since 1947………
Following are a number of questions and answers that I know are on people’s minds with regards to the recent deal Saab struck with Hawtai Motor Group, from China.
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Q: What does this deal mean for the financial future of Saab Automobile?
This agreement with Hawtai, along with the convertible loan agreement with Gemini, means that Saab has effectively satisfied it’s short-medium term funding needs. This is subject to certain conditions, of course, but we believe these conditions should be met OK. A big part of our financial future involves the building and selling of Saab cars and we’re working hard with our suppliers in order to begin production as soon as possible. There will be a limited amount of production tomorrow (Thursday 5th May) and we hope to build on that progressively though the next week.
Q: Will this deal change the ownership structure of Saab and Spyker?
Saab is owned by Spyker and that will not change. What will change is the ownership structure of the parent company, Spyker Cars NV. Hawtai Motor Group will become a large minority shareholder in Spyker Cars NV, signing up for a 29.9% stake in the company. These will be new shares, which is why it’s fresh funding into the company. If Hawtai’s stake ends up being more than 29.9% based on the agreed price and capital contribution, they will sell the excess to an independent third party (or parties) in order to get under the 29.9% cap.
Q: The agreement is subject to consent from certain Chinese governmental agencies, the European Investment Bank, the Swedish National Debt Office and General Motors. So how ‘done’ is this deal really?
A: The agreement is indeed subject to a number of regulatory approvals, but we don’t foresee any obstacles to it being approved, and we expect the deal to be completed in a timely manner.
Q: Why did Saab choose Hawtai as a partner? There were reports that you were also talking to other Chinese car manufacturers.
A: Spyker and Saab have held exploratory talks with several prospective partners in recent times. Each potential partner had its merits, of course. In the end, Hawtai was seen as the best fit and we’re convinced that our mutual interests are served best through this agreement.
Q: What’s the brief on Hawtai? Who are they and how big are they?
A: Hawtai is a privately owned, premium Chinese car manufacturer. They have 4600 employees at the moment, including 120 foreign workers giving expert advice on their development. There are many similarities between Hawtai and Saab, with both companies being of a similar size and with a growing sales volume. Hawtai have invested significantly in the expansion of their production capacity and now have the facilities to build 350,000 cars, 300,000 diesel engines and 450,000 transmissions.
Q: What does this agreement mean for Saab’s plans to produce cars in China?
A: The agreement that’s been signed between Spyker and Hawtai includes both production and distribution of Saab branded vehicles in China. Saabs for the Chinese market will be mostly produced in China, which is an essential and cost-effective solution to gaining a better footing into the world’s biggest car market. More details on which models will be produced, imported and exported with regards to China will be forthcoming at a later date.
Q: There is a technology sharing agreement as part of this deal. What does that mean?
A: Both Saab and Hawtai have technologies and expertise in fields that could be of interest to one another. We’re confident that both parties will benefit from this partnership as time progresses. However, at this point we can’t provide any more specific detail as to what would be shared, nor what model vehicles any technologies might apply to.
Q: Can you say any more about the joint ventures of manufacturing and distribution that were mentioned in the press surrounding this deal?
A: The proposed set-up is currently being reviewed by our financial and legal team, so we have an agreement in principal, you could say, but we expect the details to be signed off in due course. It includes a joint venture for manufacturing and one for distribution of both imported and locally produced vehicles.
Q: What about CATC? Several months ago, Saab signed them up to take care of distribution in China.
A: We have to be mindful here of the distinction between importing and distribution. CATC will still be responsible for the importation of Saab vehicles into the Chinese market. Together with Hawtai, Saab will distribute the vehicles and set up manufacturing, too. This arrangement will complement our current agreement with CATC.
Q: Now that you have secured financing, how will you win back confidence in the marketplace? How can you convince people that this will not happen again?
A: With the current agreements in place (Gemini and Hawtai), we believe that we will be able to stabilise operations and restart production, which is the essential first step. Saab and Spyker are totally committed to restoring confidence amongst our employees, dealers, suppliers, customers and other stakeholders as soon as possible and we are working hard towards achieving that. In the end, it all comes down to product and we believe that our new products will be well received, but we know that have to work hard to give them the visibility they need in the marketplace.
Q: How do the deals announced this week effect the intentions of Vladimir Antonov? Is he still a candidate to become a shareholder in Spyker?
A: Mr. Antonov has consistently stated that his intention is to become an investor in Saab/Spyker and that has not changed. After recently receiving approvals from the National Debt Office here in Sweden, as well as General Motors, Mr. Antonov is now awaiting approval from the Swedish government and the EIB.
Q: What about Saab’s business plan? Is that up for review after recent events?
A: Spyker and Saab stated on March 29 that they would review their full-year targets. Whilst we’re encouraged by the support we’ve received (we have an order book of approximately 5,000 vehicles awaiting production when we restart), it would be reasonable to assume that previously communicated targets will not be met given recent events. At this moment it is too early to tell what the exact consequences of those recent events will be for the confidence in our company, or to give a new forecast.
Following the deals signed earlier this week, Saab are now negotiating with suppliers to ensure parts delivery and the intention is to restart with limited production in the Saab factory tomorrow.
Below are a couple of photos from inside the Saab factory in Trollhattan today. Whilst maintenance crews have been on site for all of the shut down period, they are now powering up the machines that have been idled in preparation for tomorrow’s restart.
I know from the guys I spoke to today that it’s going to be fantastic for everyone to see vehicles progressing through these production lines again.
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It felt a little lonely walking through production with no vehicles moving through. It was as if the factory was missing its pulse.
But at least, now, the lights are on. Tomorrow, these vehicles will move again for the first time in three weeks.
The robotics at the ‘marriage point’ – that’s where the body meets the chassis – are being checked for correct operation and calibration after being restarted….
More controls being checked prior to operation….
This machine fixes the wheel nuts to cars and has different torque settings depending on which vehicle is next on the production line. It’s also being checked to ensure that the software and torque settings have been retained after the restart. In such a factory, the majority of assembly and production is done by machines. However, there are some tasks that require human assistance. In the case of machines, accidents are certainly less likely to occur than in production processes where humans are involved. It is common for factory owners to provide protective equipment such as headgear, hand gloves (possibly purchased from Unigloves), and safety glasses in order to minimize the risk of accidents.
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Again, it’ll be great to get back to doing what we do best at Saab – building our cars.
On a personal note, I’ll be on a plane somewhere around Hong Kong and on my way home when production actually begins, which is disappointing for me. I’m so happy for the company, though, that we can restart and be a car company again.
Yesterday I heard that one particular color in the Saab 9-3x range was the lowest selling color (there has to be one, of course) and thus was in danger of being cut to make way for a new color in the coming model year.
What I’d like to do is conduct a poll looking at the current Saab 9-3x colors and see which colors are most (and least) popular with readers. It’ll be interesting to see the results.
Your choices, all from the current Saab 9-3x color palette, are as follows:
Arctic White:
Laser Red:
Carbon Grey Metallic:
Diamond Silver Metallic:
Glacier Silver Metallic:
Jet Black Metallic:
Oak Brown Metallic:
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You can only vote for one color.
Please cast your vote in the poll below. It’ll be interesting to see whether the least favourite color in this poll is the same as the slowest selling color in dealerships.
I’m spending quite a lot of time at the moment just visiting various departments within Saab, getting to know what they do.
I spent a little time today at the climate controlled wind tunnel facility, where they can do various types of wind tunnel testing (though not aerodynamic testing, as it’s too small for that). The wind tunnel can be manipulated to simulate all types of weather conditions, but we’ll tell you more about that later.
They also have a couple of climate chambers there, where they can simulate different temperatures but without the wind effects. While we were visiting, a Saab 9-5 SportCombi was undergoing some durability testing on the rear rear door.
Following is a review of articles online about Saab that we enjoyed reading here at the Saab factory in Trollhattan. Please feel free to check them out for yourself.
An enjoyable look at the Saab PhoeniX Concept from the New York Auto Show.
The New York International Auto show wraps up this Sunday, concluding another round of the World Car Awards. While the World Car of 2011 and the World Green Car of 2011 respectively went to the Nissan Leaf and the Chevy Volt, the luxury market was represented with victories by the Ferrari 458 Italia (2011 World Sports Car) and the Aston Martin Rapide (2011 World Design Car). In other words, no brand new concept or production debuts won any of the top awards, begging me to determine my own winner – the Saab PhoeniX concept car.
Saabworld take a look at a rare piece of Saab’s history – the story of vehicle assembly in Denmark. It’s a very interesting read, including the little-known factoid about Saab’s largest export market from 1950 to 1953 being……. Morocco?! Perhaps that’s the biggest recipient of Danish assembled Saabs.
I haven’t checked any of this historical content with the Saab Museum, but it makes for some fascinating reading.
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The following video shows Toomas Heikkinen driving a car supplied by Saab rally legend and mentor, Per Eklund, at last weekend’s leg of the European Rallycross Championship. Heikkinen finished 6th in the A-Final.
Winding Road published a road test of the Saab 9-5 Turbo4 Premium last week and the results confirmed something that I’ve long suspected – the Turbo4 will be a genuine value surprise packet for many.
VS. BMW 528i
Saab’s brand identity is more laid back and casual than that of the sporting and slightly stuffy BMW, and that shows through in a direct comparison with the 528i. Where the BMW offers a more aggressive engine note, and firmer, pointier handling, the 9-5 is relaxing and more comfortable over the long haul. The Saab certainly looks like a fresher face, too, though the all-new 5-Series is not unlovely.
Surprisingly we end up liking the Turbo4 just a bit better than BMW’s straight-six here. Not only does Saab’s turbo deliver up more torque (258 versus 230 pound-feet in favor of the Swede), but it also offers superior throttle response. The sweet-revving six still sounds better though.
And….. without wanting to blow my own horn here, there’s a very enjoyable read about the foundations of this very website over at Car Advice, from Australia.
Zeewolde, The Netherlands, 3 May 2011 – Following yesterday’s announcement that Spyker Cars N.V. (Spyker) secured its short term funding, Spyker announces today that Spyker and Saab Automobile AB (Saab Automobile) signed an agreement with Hawtai Motor Group Company Limited (Hawtai). This agreement conditionally secures medium term funding and includes financing in the form of subscription agreements in the amount of EUR 150 million as well as a strategic alliance for China including joint ventures on manufacturing, technology and distribution.
Spyker, Saab Automobile and Hawtai sign agreement on strategic alliances partnership with respect to manufacturing, technology and distribution in China, subject to definitive transaction documentation
Spyker will enter into a subscription agreement with Hawtai in the total amount of EUR 120 million for in aggregate 24.6 million shares as well as a EUR 30 million convertible loan, subject to definitive transaction documentation and certain conditions.
As a part of the transaction Hawtai will invest EUR 120 million for up to a maximum of a 29.9 percent equity stake in Spyker on a fully diluted basis. The remaining EUR 30 million will be in the form of a convertible loan agreement in the amount of EUR 30 million with a 6 month maturity, an interest rate of 7% per annum and a conversion price of EUR 4.88 per share. The transactions are subject to agreement on definitive transaction documents and certain conditions, which include consents from certain Chinese governmental agencies, the European Investment Bank and the Swedish National Debt Office. As part of the transaction, Tenaci Capital will convert EUR 42 million of its current loan to Spyker into share capital in Spyker at EUR 4.88 per share, thereby substantially reducing Spykers interest burden.
Victor Muller, CEO of Spyker and Chairman of Saab Automobile said:
“The partnership with Hawtai allows Saab Automobile on the one hand to continue executing its business plan since we secured the required mid-term financing subject to meeting certain conditions, whilst on the other hand it allows Saab Automobile to enter the Chinese car market and establish a technology partnership with a strong Chinese manufacturer.
We expect that Saab’s unique brand values based on its aviation heritage, Scandinavian origins and innovation-driven character will do very well in the Chinese market. Our driver-oriented vehicles appeal to a whole new group of independently thinking customers who appreciate Saab’s advanced designs, safety and responsible performance.
With Hawtai’s clean diesel engine technologies and production capacity, and its ambitious development programs, we have found the right partner to develop the Saab business and build a solid relationship.”
Mr Richard Zhang, Vice President of Hawtai, said:
“This is a great day for our relatively young company which was founded ten years ago. The partnership with the iconic Saab brand will give us access to innovative technologies and an international network which would have taken us decades to build. On the other hand we have a very strong Chinese manufacturing and distribution infrastructure which we will make available to our new partner Saab Automobile. Our participation in Spyker, Saab’s parent company, demonstrates our commitment to the future of Saab Automobile as a premium European car manufacturer.”
Founded in 2000, Hawtai is a China-based privately-owned automotive company with its headquarters and R&D centre located in Beijing, and two production facilities located in Ordos, Inner Mongolia and Rongcheng, Shandong Province. Hawtai currently has an annual production capacity of 350,000 vehicles, 300,000 clean diesel engines and 450,000 automatic transmissions. By 2015, Hawtai aims to have raised this capacity to 1 million vehicles, 1 million engines and 1 million automatic transmissions, and to have established itself as a global leading automotive company.
For those who haven’t heard yet, Saab has secured short term financing in the order of EUR 59.1million to re-start production at the factory. We are also set to announce a strategic partnership with Hawtai Motor Group, from China. The nature of that partnership is yet to be revealed, however such an announcement can only bring positive benefits for Saab Automobile.
I was in a meeting this afternoon when the short term funding announcement was made and I can tell you that the dual feelings of relief and excitement in the offices at Saab was palpable.
As an enthusiast, I’ve commented several times to the effect that there was no way that I could imagine this company going down. As with the sale from General Motors, there was just too much excellent product in the pipeline – product that is now imminent – and too many interested parties for that to happen.
That’s not to say, however, that the company hasn’t been stretched in an almost unreal manner over the last few weeks.
The factory hasn’t produced a single vehicle since I’ve moved here to Sweden to commence work with Saab. That’s a difficult scenario both for the workers idling at home and the office staff trying to function as usual, making plans for when things get better. It would have been easy to take a doomsday type attitude in the last week, for people to drop their heads and lose some hope. All I’ve seen, however, are people 200% committed to making this company work.
A lot of people have asked me what got Saab into this situation and the honest truth is that I just don’t know. I wouldn’t tell you if I did – that’s a job for someone with greater responsibilities than mine – but I simply don’t.
What I do know is that all the people I’ve met who work for this company, love working for this company. And those are exactly the people we want. My colleague in Saab’s social media area left a more secure job at Ikea to work for Saab. I know guys back in Australia who have come from Mercedes Benz and BMW to work for Saab. People want this company to succeed and they want to be a part of it. Now we have to execute.
We know that the Saab community gets passionate about this brand and we have to be just as passionate about developing, selling and serving the best we can. We have to prove to our customers, our dealer network and most importantly, our suppliers, that we have what it takes to succeed.
We believe the range is in place. Sales of the 9-5, in prior and more ‘normal’ conditions, were growing slowly but surely and the key model for Europe, the SportCombi, is on its way. The Saab 9-4x is already receiving extremely encouraging reviews and more press is on the way next week after a short-lead press introduction in the United States. Finally, the 9-3 Griffin – like wind-up models before it – is the best iteration of the Saab 9-3 that we’ve ever made. It still looks absolutely fantastic and the addition of the new direct injection engine will give the model a new lease of life. And don’t forget the low-emission 9-3 diesels that free owners up from road taxes in a number of countries in Europe.
With the range in place, it will be time for us to execute. I know there are things that need work in my particular area of interest (the web) but I also know that upgrades in that area are coming very, very soon. I know that we have very creative people looking at the best ways to promote our vehicle range in a way that gives us great value for money and will offer the opportunity for great experiences for the public.
We need to play our part, and we will. We also need you to play your part. We have a good order book ready and waiting for the factory re-start, which is very encouraging. Of course, we’ve always got room for more 🙂 .
Thanks for your support and your interest in Saab already. This company just keeps on fighting and we couldn’t do it without you.
Saab Automobile and Hawtai Motor Group invite journalists to attend a press conference on May 3, 2011, for the unveiling and signing of an exciting strategic partnership between both parties.
The press conference will take place at 14:30 Beijing time (08:30 CET) in the Jinmao Ballroom (3rd Floor) at The Westin Beijing Chaoyang, 7 North Dongsanhuan Road, Chaoyang District, Beijing, 100027 China.
During the press conference both Mr. Victor Muller, Chairman of Saab Automobile, and Mr. Richard Zhang, Vice President of Hawtai Motor Group, will address the media and be available for questions.
