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It seems the deck chairs are shifting and the plans slowly unrolling within GM Europe for a more independent and distinct Saab.
There are two main news articles doing the rounds on the web today. The Automotive News article is based on a GM press release that reads as follows:
General Motors (GM) will reorganize the sales, marketing and aftersales function in Europe. The aim is to give more responsibility to the individual brands and markets in order to be able to respond fast to the rapidly changing market conditions, while continuing to focus on growth markets (particularly Russia). The changes will focus on strengthening GM’s brands and maximizing efficiency by capturing the non-customer visible multi-brand synergies.
GM Europe will also streamline the cluster organizations and have the markets report directly into the brands. This allows a more targeted approach in the individual markets, speeds up decision making and simplifies the structure.
To achieve this, GM Europe announces the appointment of three brand leaders, reporting directly to Brent Dewar, GM Europe vice president, sales, marketing and aftersales:
* Alain Visser, currently GME chief marketing officer, will be named GME vice president Opel
* Wayne Brannon, currently executive director Chevrolet Europe, will be named GME vice president Chevrolet
* Jan-Åke Jonsson, will add responsibility for marketing and sales for the Saab brand in Europe to his role of managing director of Saab Automobile AB
An interesting omission here – who’s the chief in charge of GM Premium Brands? The guy who’s going to push Cadillac’s barrow in Europe?
Did I miss something here?
The release goes on…..
The multi-brand structure has served the organization well and vaulted GM Europe to over 2 million vehicle sales for the last three years. We will now transfer to a set-up with more autonomy for the individual brands, increasing our efforts to grow brand equity, accelerating the decision-making process and driving business growth in Europe”, said Dewar.
“The multi-brand structure has served the organisation well”
???????
Then why change it?
Reading between the lines, I’d say this points to GM putting more emphasis on Chevrolet in Europe, admitting they can’t run Saab in Europe because they haven’t got a clue when it comes to individuality, and the final admission-by-omission that Cadillac has been an abject failure and total waste of corporate dollars.
You won’t hear anyone within GM say that. That’s just me.
The focus here, I guess, should be Jan-Ake-Jonsson’s increased responsibilities, which center more of Saab’s functionality within Sweden, which is where the plan is heading, of course. Those increased responsibilities will take effect on March 1.
One of our regulars here at TS – Maxfli – chimed in with the comment of the week in response to this story over at Automotive News:
Maybe Jan-Ake Jonsson can order toliet paper for the office now without asking 27 people up to and including Rick Wagoner for permission…..although I doubt it.
Classic!
——
The other report is from Autocar in the UK, where GM Europe chief Carl-Peter Forster (who I believe is a genuine GM supporter of Saab) has been providing some cause for optimism:
GM is working at top speed to complete “the base outline” of a Saab funding agreement with the Swedish government before the end of the month, GM Europe president, Carl-Peter Forster, has said.
A plan for Saab’s future must be part of the overall viability plan for GM presented to the US government authorities at the end of the month, said Forster.
February 17th is definitely “by the end of the month”
“I still believe in the Saab brand,” said Forster. “Its traditional values of safety, understated design and care for the environment all fit today’s socio-economic climate and are very resilient. With the right model structure and a consistent, well implemented strategy, I’m convinced Saab could still be profitable.”
Forster says GM’s ‘mistake’ was to set Saab on the correct path too late.
That’s CPF being very cagey with the corporate speak. Accentuate the positive. Getting on the correct path too late = lack of involvement and investment earlier in the piece.
Semantics aside, this is good meaty confirmation of the path that we already knew was being taken. A path that should bring us the following:
Saab will launch a new 9-5 in about a year, and a mid-sized SUV, the 9-4X, in about 15 months. That will be followed a year later by a new 9-3. At that stage, a new small Saab, probably Astra-based, could make sense, Forster believes.
As much as I’d like to see a smaller Saab, that new 9-3 has got to be priority #1.
Go you Swedes!!!!
14 responses so far ↓
1 Robin M
// Feb 6, 2009 at 9:32 am
With you on that one Swade,,,,again,
2 zippy
// Feb 6, 2009 at 10:15 am
The 9-5 will be the car that seals Saab’s fate. Its style has to scream Saab with no cheesy addons (ie those bloody awful 9-4Xesque rear lights) with high output diesel/gas engines and a top of the range Aero model twin-turbo engine putting out a minimum of 300bhp. We have seen a spyshot of the interior and from what I could make out – it’s TOTALLY Saab. Saab also needs a Swede as head of design who truly understands that Scandinavian ethos behind design.
Mess up the new 9-5 and it wont matter what happens next.
3 Markac
// Feb 6, 2009 at 11:38 am
zippy, hopefully those taillights were only borrowed as part of the 9-5’s disguise? Swade, you’re right, the next 9-3 is now of prime importance. The 9-3SS can not be left to languish like the 9-5. I still think the 9-1 has an important place in Saab’s future though.
Why is it that when anyone uses that “moving deck chairs” expression, I always see this black and white movie in my head: “A Night to Remember”.
4 ck1x
// Feb 6, 2009 at 11:56 am
I don’t know if I would go so far as to say that the 9-5 is the car that will seal Saab’s fate, but it does have to make a statement about the future of Saab and where they are going. The new 9-3 will be the car to prove whether Saab can be viable or not. Just from those quick statements you posted Swade. It’s kinda surreal to believe that a brand new 9-3 could be about 2 years away from now! If Saab can actually keep this current timeline for rebirth. Then we might be able to see Saab rise from the ashes a lot sooner than expected.
5 2-don
// Feb 6, 2009 at 11:57 am
Hopefully the rear lights will look a little more Aero X than 9-4. I’m sure it’s going to be a looker!
6 Markac
// Feb 6, 2009 at 12:10 pm
ck1x: I have to agree with you. The new 9-5 will have to carry Saab for a while, but we have to remember that it was conceived at a time when when things were much different for both Saab and GM. It’s probably a bit larger than Saab would currently look at for that class of car, and it may not show the true direction that Saab now plans to head. It will be very interesting none the less!
The next 9-3 will be truly indicative of where Saab plans to head. I can’t wait to see that one!
7 Bill H.
// Feb 6, 2009 at 1:15 pm
Is there also an implication that Saab in the US will be: 1) still dependent on management from Detroit; or 2) kaput?
8 Kroum
// Feb 6, 2009 at 1:40 pm
Yeah, Saab’s fate in the U.S. is of great concern to me, too. There have been a few statements coming from GM management that made me shiver.
The timeline looks extremely promising, though. The 9-5 needs to be both a stunner and a seller – to provide the cash for the all-new 9-3, which in turn could finance the 9-1.
You have to keep in mind that the Swedish government money is a loan, not a giveaway, so it would need to be repaid some day. And Saab would still need money for R&D and new model development.
And here is hoping that should all these models be the success I’m sure they will be, we could really see an Aero-X inspired halo car sometime during the next half decade.
9 Bruce
// Feb 6, 2009 at 3:04 pm
I really like what I am reading. It seems to mean that if Opel wants to sell Opels in NA then it can sell them as Opels unless it decides that the Saturn rebadge will do better for certain models. Saab dealers cannot survive as an accessible network with pricier Saabs without a less expensive line of cars to sell in the same showroom, and GM Europe looks as though it is being set up to do its own marketing in NA wherever they want to sell their cars. This is good news slowly taking form. Ditto for what we are seeing of the 9-4 and 9-5. The profits are on the high-end models . . . build image then bring the new 9-3 and indeed an Astra-based 9-1.
And it would be very nice to see those TT diesels in NA, but it seems in the US that diesel is priced quite a bit higher than gasoline, so one would never get the price difference back. Does anyone know why private-car diesel is more expensive than premium in the US of A?
10 bean of joy
// Feb 6, 2009 at 4:47 pm
independent saab is coming back. relationship saab was killing it.
a saab divided against itself cannot stand.
11 Me
// Feb 6, 2009 at 6:01 pm
@Zippy
“Saab also needs a Swede as head of design who truly understands that Scandinavian ethos behind design.”
My words.
I never understood, why they did hire a German for this job.
I don’t think the new 9-3 could be ready for the street in a shorter time frame. Even 2 Years is a really tight schedule.
SAAB needs a 9-1, they need new customers and young customers ( I think the main buyers of an Astra sized car) are not the biggest SAAB customer group.
12 van god los
// Feb 6, 2009 at 7:42 pm
Bizar, I thought that the new 9-3 was already more or less decided on.
It would be based on the delta II-platform and would have more or less the size of the chevrolet cruze (which is also based on the delta II-platform).
They were also talking about a 9-2 (an astra sized hatchback also based on the delta II-platform). Much like the 9-x and the 9-x air concepts.
And if after making the 9-2, there’s was still some money left, they were considering a 9-1 but they didn’t really have a platform in mind for this one as the GM platform for cars that size (chevrolet matiz/opel corsa) was found not got enough for a mini-saab.
Maybe with the saab independance thing, all options are open again.
However, in my opinion, the days of the smalls sedans are over (at least for “premium” european brands, for budget small sedans I think there will be a market – South east Asia, India, Northern Africa, the Middle East, South America – but I don’t think that’s the budget small sedans is the market Saab should be aiming at)
So I think Saab should drop the delta II-based sedan and immediately come with a delta II-based hatchback in 2 sizes, a smaller 3-doors and a slightly bigger and more practical 5-doors (think audi a3 and a3 sportback or volvo c30 and v50-sized hatchbacks, lancia delta, …) and a convertible (please, bring us the 9-x air).
True, there would be a serious gap between the delta II-based hatchbacks (max. +/- 4m50) and the 9-5 (+/- 5m) but as the resources are probably going to continue to be rather limited for saab for a while, I think it is important for Saab to be present in those market segments that have a future (cfr. the downsizing trend).
Just my 2 cents.
13 Pedro
// Feb 6, 2009 at 8:24 pm
“I still believe in the Saab brand,” said Forster. “Its traditional values of safety, understated design and care for the environment all fit today’s socio-economic climate and are very resilient. With the right model structure and a consistent, well implemented strategy, I’m convinced Saab could still be profitable.”
CPF gets it and he’s said to be a SAAB supporter withing GM, now let’s how much real leverage he has.
Product development priorities seem correct to me: refresh the top of the line model (9-5), introduce another top-end product (9-4X), reengineer the 9-3 and then, eventually, launch a 9-1. Work from top to bottom, get the higher unit margin vehicles out first, then go for the rest.
14 fuzzi
// Feb 7, 2009 at 7:43 pm
nice word near-premium !
“Chevrolet is very different from Opel and both are different from Saab,” Dewar said.
Chevrolet is GM’s value-for-money brand in Europe. Opel is its volume seller and Saab is near-premium.
http://www.autonews.com/apps/pbcs.dll/article?AID=/20090205/ANE02/902059997