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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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