Monthly Archives: November 2008

Turbin’s new TiD

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My thanks to everyone for your comments on the Have you bought a Saab in 2008 post from last week. As I write this, there are 63 comments there, which tells me there’s a lot of you rolling in either new or new-to-you Saabs this year, which is great news. If TS has been of help to some of you in achieving that, then I’ve had a pretty good year.

Through our local email ring here in Australia, we recently caught up with Turbin, who might just have the most recent addition to the TS-related Saab list. He picked this beauty up only around 10 days ago, taking advantage of the rather massive loyalty discount being offered by Saab Australia at the moment. If you’re in Australia and have a Saab under seven years old, it really is worth a look (if you can still get it).

The car is a 2008 Saab 9-3 SportCombi TiD and it replaces Turbin’s 2006 SportCombi, which was a 2.0t and featured in the Saab Pride competition late last year (yeah, Turbin, I know….the pics don’t enlarge – sorry).

Anyway, here are Turbin’s initial thoughts on what is one sharp looking car (especially for a diesel!). Congratulations, mate!!!

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Pass:

About the drive, very happy.

Even with 17″s instead of 16″s the ride is better if a bit more noisy from the tyres. The heavy nose of the diesel (along with appropriate suspension) probably helps on the highway, as it feels less nervous than the 06. Looking to get 900kms out of the first tank with a lot of run-in still to do.

The rolling acceleration is great and not vastly different from my old 2.0t. On top of which the economy doesn’t take the same hit when you get happy with the pedal. There is alot of diesel clatter at idle and low speeds but that’s what I paid for, if I bought a diesel I want to hear a diesel (many would feel differently, I know).

Fit and finish is great, no problems with the new dash layout either. Doors close with a good thunk and the tailgate closes properly more often. The 06 would often take 2 or 3 goes to latch. Bluetooth is great and very clear. Sunroof is beautifully integrated and nicely tinted so you can leave the shade open more of the time. Seats feel better, maybe just less tired than the old ones. Parchment interior looks really good and is off-white enough to not look dirty so easily. Lights are great and the light pipes look fantastic at night.

Also really great on-road stance, even with the roof-rails.

Fail:

Gearbox combined with narrow torque band takes some getting used to. At 100km/h it’s 2000rpm in 5th. I am presuming better efficiency at 1500rpm in 6th but that doesn’t shift in til min. 105km/h. Whether the extra speed cancels out the efficiency I don’t know (?). 2000/5th is a bit noisier but in 6th it tends to (smoothly) kick down at the slightest hill.

Turbo lag is a monster. Really have to plan ahead. I don’t do much stop-start anyway but you don’t want to take risks turning into fast approaching traffic.

Those two things I was aware of from reviews and driver stories. The skimpng on leather was a surprise. The 06 had leather across all seat facings except rear outer bolsters. Now the only leather is the middle inserts of the 4 main seating positions. The middle of the backseat (where we put one of the boys seats) used to be leather as well, is now vinyl. Not that I could justify it but the premium leather is not even an option for Linear.

Final whine is that after taking delivery 1 week before the end of the Saab Exchange program, they have extended it through to Dec 31st. I maybe could have gotten a better deal later in the piece?? I don’t care too much anyway as this car was dealer stock and had a rare combination of factory sunroof and parchment interior as well as factory 5th headrest and CD stacker (not standard at this level). If I had have held on might have lost it and at less than $40k on the road I won’t complain.

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The wheels were the biggest surprise in all of this, Frank @ Mentone (who was a real gentleman to deal with) had agreed on ALU 45s which are the nice clean 17″x&7″ 5-spokes that are optional on the Linear and standard on the Linear Sport. When I arrived to pick-up he wanted to sign all the papers first. I asked to see the goods before signing anything.

Off we went and he’s saying, “looks really good, looks like a Vector”. Then I saw why, these wheels are, as Ferd said, ex Aero, standard Vector 17″x7.5″. Not considered a factory option on the Linear. I’d say that because they were ordered from accessories they went the cheaper option which is these at $40 less per wheel than the ALU45s. I’m pretty happy as it is also apparently pretty costly getting the 17/45/225 tyres whereas 17/45/235s are much more common here in Oz.

Three things are missing from the car as you see it, white on black plates (or should I go white on red ??? thoughts please), super dark tint and of course ….. something I’m not allowed to mention here – SW

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Saab 9-3x vs Saab 9-3 SportCombi

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I thought it these photos might make for an interesting quick comparison.

It’s amazing how some wheels, suspension and a bit of body kit can transform a car. Of course, the light and dark colors of the vehicles make the effect seem more pronounced, too, but all in all I think you’ll get the picture.

What you’re seeing here is the 2008 Saab 9-3 SportCombi in Aero form compared with the Saab 9-3x pictures that we got last week. I’ve tried to pick similar angles where possible so it’s an apples vs apples scenario.

They really do look like two different cars and you can see that Saab are intentionally toughening up the 9-3x to position it in that upper-Subaru wagon and Volvo markets. It looks a lot taller, a lot more rugged and nothing like the hunkered down form of the Aero.

I guess what’ll determine it’s success in that Volvo/Suuby market is the price. The Suuby market might find it a bit expensive though the smaller Volvo types might find it appealing.

The things we don’t know about the 9-3x that could make a big difference: levels of equipment and engine options. The base model 9-3 SportCombi with 2.0T and XWD comes in at $37,810 in the US. I can’t see the 9-3x being any cheaper than that.

I’m really interested to see this car in the metal. My tastes tend to skew towards the more sporting elements of the Saab range, but this one fascinates me to a degree, possibly moreso than the 9-4x at this point in time.

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JAJ on Saab – pt 2

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JAJ on Saab featured some relevant excerpts as translated and forwarded by Johnny.

ctm has been kind enough to translate the entire interview published at Dagens Industri and it makes for very good reading.

Thanks ctm!!

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Saab Automobile CEO demands help from the government

Jan-Åke Jonsson, CEO Saab Automobile, has presented the Swedish government with a list of demands. Among other things, he like to double the tax reduction on green cars, make it cheaper to have an E85 car as a company car, accelerate the scraping of older vehicles, and get Government loans for the development of new cars.

- “The negotiations are both positive and constructive, but I can feel that they are advancing a little too slow,” says Jan-Åke Jonsson to DI.

The current crises for General Motors, a company that needs Government support to have a life after Christmas, have an effect on Saab in Sweden. On Tuesday, GM – together with Ford and Chrysler – will present a plan in order to persuade the Congress to give them a 25 billion dollar bailout package.

The rumors the last few days have been about GM selling of Saab together with Pontiac and Saturn in a move to persuade the American politicians, who definitely don’t want the money to end up outside the US.

- “Since we are a part of GM, we have also been involved in shaping the plan. I know what has been discussed. I can tell you that Saab is very strong inside GM, we have a well defined profile, we are well integrated, and cooperate with several other brands. You have to draw your on conclusions from that.”

Is Saab a part of GM three years from now?
- “Yes, that is my belief. When we have full production of our new models, we expect a volume of about 150,000-175,000 cars per year. Then we have a solid profitability and can contribute to GM overall.”

We meet at the Saab office in Stockholm. At the moment, the CEO spends more time here than in Trollhättan.

- “I have visited the Ministry of Enterprise, Energy and Communications several times the last few weeks, and we keep in very close contact.

What kind of support do you want?
- “We expect that they take measures to get the market going again. For us, the big problem today is that customers hesitates. That is why we have proposed a package to lure the costumers back.”

But the CEO also want’s financial support for the development of new car models.

- “We want to guarantee the investments we are facing for our future model lineup. Of course, GM has its own plan on how to solve this; the sale of assets is one example of this. All this aims to improve cash-flow. But if the crises continues, new models may have to be postponed to free up some capital. One way to avoid that is to have some form of loan or financial guarantee from the Government.”

Jan-Åke Jonsson will not disclose what amount of money it’s all about, but maintain that no new models have been postponed – with one exception:

- “The only model we have postponed is the 9-4X from 20009 to 2010. We have emerged in a favorable position from those discussions inside GM.”

The Swedish Minister for Enterprise and Energy have asked GM and Ford what their plans are for Saab and Volvo…
- “And she got an answer. There are no doubts about GMs plans for Saab. But the Government has to make a decision. At the moment, there is a possibility to influence how the Swedish auto industry will look in the future. And the earlier you decide, the more influence you can have.”

When do you want an answer form the Government about your own proposals?
- “I expect to have it any day now.”

Saab has lost 18% of the sale so far this year, but according to Jan-Åke Jonsson it’s not very surprising.
- “We had expected 2008 and 2009 to be difficult years, for the very reason that we are on the verge to introduce new models. We had calculated this downturn, and took measures last year to adjust production capacity.”

But you are down over 30% in the US?
- “We have taken a decision to not chase volumes at any costs. Instead, we have raised prices with 11% between 2008 and 2009, have sell cars with a higher level of equipment which have a positive impact on our margins, we have abandoned some sale channels [?], and the US operations has actually gone from a negative return to a segment-positive return – despite the loss of 8,500 cars.”

This year, Saab will end up selling about 100,000 cars, and next year even less. But Jan-Åke Jonsson confirms that two new models will be introduced and produced during 2009. The all new 9-5 “during the later part of the year”, and the 9-3X – a raised combi, with some exterior changes and four-wheel drive.

- “I think there is a bigger potential for that car than we have imagined. It’s more of a passenger car than what a cross-over is. It’s a segment that has the potential to grow even more than we thought.”

Is the smaller 9-1 off the table?
- “No. We have a need for a smaller car, and there are several different ideas for it. If it is developed together with other cars inside GM, the process could go very quick. But first GM has to get some clarification about the financial situation, if they will get the Government bailout plan.”

It sounds like the decision about a smaller car is far away in the future?
- “I don’t think so.”

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Metallic Paint or Metallic Pain in the wallet?

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For reasons which will soon be revealed, I’ve been become acutely aware of the margins on auto options as mentioned in a previous post. The prodigious markups are obvious on some items — after all, who really believes that floor mats cost anything near the charge? How about the stereo upgrades that can be bested in aftermarket gear for less than half the price? In some cases the upgrades are worth the price because they look or feel better, but in others the value vs. the cost is debatable. In this post, I explore this question: is metallic paint really worth the price?

Most car makers still charge a premium for certain colors of paint. Saab is no different. Buy a Fusion Blue Metallic 2009 9-3 and the car will set you back US$550 over the same model with Polar White paint. On a 9-5, the same privilege will lighten your wallet by the same amount. In fact, only three colors, white, red and black, are offered at the “base” price.

Is this additional cost justified, or is the option up sell for metallic paint simply additional margin for the automaker?

First of all, let’s explore the roots of metallic paint and why automakers charged a premium in the first place.

The obvious question: does metallic paint and it’s close cousin pearlescent paint cost more than solid color paint? The answer: not much if any. Metallic paint simply has a very small amount of aluminum flake added to the formulation while pearlescent paint has an equally small amount of mica flake added. Certainly these raw materials are very inexpensive, and the remainder of the mixture doesn’t vary to any great degree. If you want to test this theory, call an automotive paint supplier and request pricing for any color in both metallic and solid. There will be no difference.

The next question: does metallic paint cost more to apply? Well, that’s debatable.

In the 1960′s, metallic paint really was something special. Without the automated paint booths that create today’s perfect finish, paint was either applied with hand-held sprayers or with full-component paint baths, neither of which guaranteed even coverage and therefore even distribution of metal flake. Therefore, paint rework was more common and more difficult with metallic colors and thus metal flake was more expensive overall.

By the late 1970′s, the environmental regulations and workforce protection laws changed paint formulations dramatically to reduce airborne pollutants released in the paint manufacturing and application processes. Faced with the differences, automotive finish experts were forced to change many established practices to make the new paint work. Because I can find almost no data on the comparative costs, I’ll give the car makers the benefit of the doubt here — let’s assume that some difference in cost existed during this period.

Therefore, there was likely some historic precedent of increased production cost for metallic paint.

Today, however, I believe that most of the cost differences for application of metallic versus solid paint are miniscule if any real difference exists. Certainly, automation is a huge advantage overall for auto builders, but no place more so than in the modern paint booths employed in all current auto assembly plants. Once the correct procedures are dialed in, all cars are produced with similar results. Sure, certain paints my need slightly different procedures, but those changes easily happen on the fly with the manufacturing computers remembering the “recipe” for each configuration.

Certainly there are many that agree with me.

From drive.com.au, Mr. Tim Colquhoun finds that auto OEM’s are keen to defend their position that metallic and “special” paint colors cost more, but paint experts differ:

Darren Kenney, owner of Kenney’s Automotive Paints in Carramar, says that there is little justification for car makers charging a premium for metallic paint.
“It’s a bit of a rip-off really,” he says. “The only difference between standard and metallic paint is that metal flakes are added to the tinter in metallic paint.”

Wikipedia has this quote, which is, in my experience, true:

Manufacturers almost always charge a premium for the “option” of metallic paint on a new vehicle, although metallics usually account for all but one or two of the colours from the palette available (only red and white are available as solid colours from many makers).

The same article goes on to say:

…many consider the price premium for metallic paint as a way to boost the base price of a new vehicle.

In the end, I find these sorts of games with numbers annoying. You can view the inflated cost of the metallic paint “option” in two directions: either the auto OEM is attempting to raise the profit of the car with a low-cost, high-priced up sell, or the maker wants to advertise an artificially low starting price. Either way it’s attempting to obscure the truth. When the consumer doesn’t have a firm grasp of the truth, the relationship deteriorates. It’s really that easy in my view.

Does it have to be this way? I think not. In fact, consider the Saab 9-7x. For the Saab 9-7x, your choice of available colors adds nothing to the price of the vehicle. That’s right: for the 9-7x, easily the largest vehicle in Saab’s line up, the additional cost for metallic paint is zero.

So, tell me this — how can this be? Does Swedish metallic paint cost more than American metallic paint? Does Saab simply think that they can get an extra $550 per car, but not on the SUV?

Your opinion, as always, is welcome.

First Drive: Porsche 944

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I had a little fun today :-)

The car at the top of my list to replace my Alfa and be car #2 that I fulfill from my “Cars I’d Like To Own At Some Time In My Life” list is a Porsche 944. One came up for sale here in Hobart this week and fortunately for me, the owner was kind enough to let me come around to his house, ask a few questions and…..go for a spin!

This is the car:

It’s a 1983 Porsche 944.

This model year, the 944 had a 2.5 litre, four cylinder engine in the front of the car with an output of around 150hp matched to a 5-speed gearbox. The 944 has a transaxle gearbox so the weight distribution is within a bee’s gennies of being dead on 50/50.

What I love about the Porsche 944.

First of all, I love the fact that it’s the second most affordable Porsche (the 924 being the most afforadble). I don’t think I could dream of ever getting into a decent 911, but even the best of the 944s is probably within my reach.

Second, I absolutely adore the styling of the car. Many of the cars I’ll drive in the next 10 years or so will be things that I loved as I grew up in the 1980s. You don’t get much more 1980s than pop-up headlights and in my view, there’s no prettier car with pop-us than the 944. In fact, despite the pop-ups, the 944 still manages to look quite contemporary.

Does the car in the photos above/below look like a 25 year old car to you?

Things I learned from driving this car today

The main thing that I learned is that there’s no way I’m going to buy a pre-1986 Porsche 944. This car, and all the 944s up to around mid 1985, had the 924 interior. Some time in 1985, Porsche gave the 944 a new interior that looks a whole lot better and is most likely quite a bit easier to live with.

This car, for instance, had no tilt adjustment for the steering wheel. Given that the wheel is so low and virtually sat right on my legs, this could be a problem (one that I hope will be remedied in a 1986-on car).

Just as it doesn’t look 25 years old, the car didn’t really feel 25 years old, either. The gearbox was still really tight and snappy. The steering wheel had a minimal amount of play when you first move the wheel, but after it had taken up the tiniest bit of slack it was really precise with superb feel and you could tell the car was really well balanced. It just hunkered down and stuck to the road.

This car had that 150hp engine I mentioned before and whilst it does have a bit of zip when you stick in the persuaders, I’d definitely need a bit more grunt to feel like I’m driving a Porsche and getting my money’s worth.

Today’s drive pretty much confirmed in my mind that I’ll most likely try and track down a good 944 Turbo. It seems logical and appropriate for a Saab guy, really. I just need to find one in good condition. The early Turbos (i.e. the ones I’ll be able to afford) had a 220hp engine, giving the 944 Viggen-like numbers but with a bit less torque.

It’s still going to take a while to save the money I’ll need to get one of these, but having got a taste of it today, I’m really looking forward to the day it happens.

Time to fix the clutch in my 900 and prep the Alfa for sale, I think :-)

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Old 924 style interior with aftermarket steering wheel:

Newer generation interior from 1986 onwards, with original steering wheel that’s a pain in the butt to use, hence the large number of aftermarket wheels out there:

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JAJ on Saab

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Johnny has posted an interesting excerpt from an interview with Jan-Ake Jonsson, published in Sweden’s Dagens Industri newspaper today.

This was originally posted in comments, but I thought it worthwhile bringing into the light in a separate article.

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A really interesting interview with Jan-Åke Jonsson is published today on Dagens Industri site.

Some excerpts (sorry for the quick and rough translation):

[About delays and cancellations of new models:]
“Our only change is that we have pushed 9-4X from 2009 to 2010. We have been successful in these discussions within GM”

[About the decreasing sales volumes:]
“We knew 2008 and 2009 was going to be difficult, because we are just about to launch new models. We already expected decreasing volumes and took measures last year to adjust the production.”

[About sales volumes in the USA dropping by 30%:]
“We have made a decision not to chase volumes at any cost. Instead we have raised the prices by 11 % between 2008 and 2009, we’ve added more standard equipment which is good for the margins, we’ve moved away from some sales networks [not really sure how to translate that one.. /J] and our US operations have actually gone from a negative contribution to a positive segment contribution [not sure about what JAJ means here /J] despite a sales drop by 8,500 cars.”

This year Saab will sell just short of 100,000 cars, and next year it will be even less. But JAJ confirms that two new models will be launched during 2009: an all new 9-5 “to be launched second half of 2009″, and the 9-3X.
“I think it [9-3X] has a much greater potential than we have imagined. It is a vehicle that is more passenger car-like than a cross-over. That segment has a potential to grow more than expected.”

Whether the plans for a 9-1 is cancelled:
“No. We have a need for a small car and we have lots of different ideas. If we work together within GM it could be engineered really quickly. But GM needs to get a clear view of the future finances, whether there will be financial support from the government. For now, the 9-5, 9-4X and the new 9-3 are prioritised.

DI: sounds like the decision about a future Saab small car is way ahead?
“I don’t think so.”

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Again, like the interview I did with Eric Geers last week, JAJ is maintaining a positive frame of mind for the media.

Also of note is the confirmation from the boss of what was mentioned last week, that the Saab 9-5 is still scheduled for release in 2009, most likely as a 2010 model.

The note about the US market actually making a positive contribution is an interesting one and it’s one that I just can’t comprehend. I’d love to get some better of understanding as to what he meant here. The 9-7x makes huge margins, as does the 9-5, but the incentives they’ve been offering on these models must surely eat significant amounts out of those margins.

I hope he really means it when he says a small car would be quick to develop. And I hope we still get a chance to see it happen.

My thanks to Johnny for the link and the quick translation.

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Saab in Second Life

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I know many real life companies have a presence Second Life, the online escapism project that allows people to be what I guess they’d like to be in real life. The companies concerned see it as a cost-effective way to market their products to people. I’ve even read in the news about companies doing Second Life product launches, complete with speeches, press releases and the whole shebang.

I don’t know if Saab have taken up an officially backed presence in Second Life, but these screenshots would tend to suggest that someone has taken the trouble to set up a Saab-ish presence there.

Personally, I’ve got enough on my plate with real life and have never explored the Second Life world, but I remember it being huge a few years ago. It seems to have quietened a little since then.

Even Santa’s paying a visit, probably wondering which Saab he should park under my tree :-)

Beware, there’s every chance that this attractive young Second Life woman is actually a fat, hairy old man with eleven fingers and a drooling problem.

A question for all our Saab dealers tuning in – how often do you have this many people in your showroom at one time?

If you’d like to see more, there’s a set of 32 screenshots at Flickr.

And if you’re a Second Lifer, have you come across any Saaby presence there? Any other companies of note? And are you a fat, hairy old man with eleven fingers and a drooling problem???

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News imminent from Saab?

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Sorry about the lack of writing, but my throat is staging a revolution today.

Just a quickie…..and this is third hand or thereabouts.

I’ve just heard from a news source in Sweden that there may be some news coming from Trollhattan in the very near term. Their tip came from someone close to the workers union that oversees the factory workers in Trollhattan (and other places), the union called IF Metall.

Apparently there have been some people from another company looking around at facilities in Trollhattan in the last few days and this has something to do with the possible announcement.

So…possibilities:

1) A sale of Saab, as has been posed in Bloomberg News in the last few days, or

2) A sale of Saab property, as was first reported here last weekend.

I’d go for #2. If Saab are going to be sold, I’d be very surprised if anything happened this quickly. The property sale seems like a far more likely scenario, if anything, though even that’s a relatively long shot at this stage.

There’s nothing on the newswires at this point, including Trollhattan’s own TTELA, who are only covering the initial news that GM are using JLL to shop properties around.

Anyway, I’m off to bed. If anything happens, comments are open.

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