Because it was his first time leaving a comment here, the following went into the comment moderation queue and I didn’t approve it in time for it to sit in the sidebar.

I thought it significant enough to reprint here, though.

Even though I’ve been retired from the Car Wars for quite a few years, I continue to have a strong feeling for Saab, and a keen interest in the business despite how the marque has been handled by GM since they started calling the shots.

According to figures just released, total Saab sales in the entire United States last month came to just 852 vehicles. Eight Hundred and Fifty in the entire nation! It’s sad in the extreme.

Despite the current dismal outlook, I sincerely hope an adequate resolution can be found – for the sake of all Saab loyalists everywhere, the work force in Sweden and abroad, and the Saab dealer network who have invested so much in building their Saab business.

Bob
Santa Barbara CA, USA

To the dealers and Saab workers reading this, that message of solidarity and support is from former SaabUSA chief, Bob Sinclair.

Welcome to the TS comments section, Bob!! Good to hear from you again.

——

Jan-Ake Jonsson did an interview with BBC World yesterday, where he covered a lot of the things that I covered with Eric Geers on the phone.

The BBC reporter really did ask a few tough questions and Jan-Ake’s composure was commendable.

If you’d like to have a listen, click here (mp3 file – right click would probably be best). The Jan-Ake section starts at around 2:25

Thanks Alexandre!

——

I know a lot of people agree with the idea of Saab and Subaru being fairly similar.

On an intellectual level, I can see that, though in my experience, driving a Subaru just leaves me feeling cold towards them. No connenction at all.

There was an interesting article at Autoweek today about this subject, which pretty much mirrors the above three sentences.

Driving a new Subaru Impreza GT sedan over my favorite local twisties a few weeks back, the way the car spoke to me–quickly, honestly and directly–about itself and the road embodied some vital elements of real Saabness. But, as many others have noted, Subaru’s way is not Saab’s way–or anybody else’s, for that matter–and the 224-hp GT made that clear. It was quick and fast and handled well, and though the little AWD sedan hustled along at pretty much whatever pace this side of absurd that I wanted to maintain–with excellent brakes, very good seats and cockpit controls–it was not a memorable car.

It’s appropaite that Bob Sinclair should chime in via comments today, as there’s an appeal to coax him out of retirement in that article.

——

TurboNines have a few thoughts about what Saab could look like ex-GM.

Interesting reading for those who are still pondering this issue.

–

The following is an internal email sent to Saab employees in Europe from Carl-Peter Forster, the head of General Motors Europe (and incidentally, the head of Saab Automobile as well).

December 3, 2008

Dear colleagues,

As you are aware, on December 2, General Motors Corp. submitted a plan to use Federal bridge loans to create a leaner, more competitive company, one that is profitable and self-sustaining for the long term. Please know that this is a plan for the US. Of course, it is important for all GM employees around the world, not in the least because the plan needs to convince the US Government to grant GM bridge loans to ensure our mother company has sufficient liquidity to work its way through the financial and economic crisis.

In the plan it is also stated that GM will immediately undertake a global strategic review of the Saab brand. A ‘strategic review’ means GM will evaluate all options for the Saab brand. This could include anything from modifications to the current product line-up and sales distribution to a partial or complete sale of the brand. I understand that this announcement creates a lot of uncertainty, especially for everybody working with the Saab brand here in Europe, but it’s essential that we evaluate all of our options. Saab is a very desirable brand globally and we believe in it’s future, but we need to develop a solid plan to fund our product portfolio renewal and expansion in this uncertain environment so this study makes sense. In the next 12 to 18 months, Saab is planned to launch multiple new products. Those products remain in the product portfolio today and we expect to go forward with the launches as recently announced with a 9-5 sedan toward the end of 2009 and the 9-4X in mid-2010. We will of course keep you closely informed.

This is how the US plan impacts us. And of course, we have to continue executing our own measures here in Europe in an even weaker market. I realize it is sometimes tough to remain focused with all the uncertainty and speculation. It’s hard for all of us, but please stay positive and confident. I have full belief that we will come out of this as a stronger company.

Carl-Peter Forster

——

Djup Strupe has a few thoughts to go along with this is as well. I’ve added them below as I think they’re pretty well-formed and relevant to Saab’s needs for the future.

What I don’t understand with Saab talking to the Swedish government is that the broadening of the brand is about making a 9-5 in Germany and the 9-4x in Mexico. This cannot be of interest to the Swedish government to finance? Geers didn’t mention that the 9-5 and 9-4x are great looking cars, but not the fuel efficient cars that Saab really needs. I believe we could capitalize much more on the 9-3 platform that is built in Trollhättan. They could put 9-X Air and the 9-1 on that platform and make two new cars really cheaply. They could hybridize the platform and all. That’s something the Swedish government could be interested in.

My thanks to Djup Strupe for sending both Carl-Peter’s message, as well as sharing an inside perspective too.

The first lot of bailout hearings have been going on while I’ve been sleeping and sifting through the initial coverage it doesn’t look like there’s much of direct interest for Saab-watchers. This dog and pony show is all about GM North America.

For those who are interested, the Detroit News has the best play-by-play coverage I’ve found so far.

The day didn’t start that well for GM:

General Motors Corp.’s driver of the “show car” version of the Chevrolet plug-in hybrid electric Volt nearly was arrested when he couldn’t roll down a window at the request of a Capitol Hill police officer. A GM spokeswoman helped smooth things over.

In many respects it didn’t improve:

Sen. Richard Shelby, R. Ala., isn’t pulling any punches. He told the three CEOs that there plans were full of “scattered facts” and little else.

“They contain few concrete details about how your companies would return to profitability,” he said. “I suspect that any sensible banker would summarily dismiss your plans.”

He asked for more detailed financial projections, which all three said they would provide.

Mulally took issue with the senator’s suggesting that Ford’s plan would not pass muster. He said what Ford provided Congress is exactly what it provided the banks when it borrowed $23.5 billion in 2006.

Have I mentioned that I really like Alan Mullaly? One thing I know from my job (where I basically spend all my time reviewing the work that others do) is that they know their job better than I do. It’s the same with these CEOs and the senators questioning them. It’s one thing to be accountable to the, but when they start spouting crap at you, it’s alright to let them know. Mullaly’s just done that, and good on him for doing so.

Of course, Wagoner and Nardelli need the money a bit more, so they’ll take one for the team and plan their revenge later.

The Detroit News noted the following about Shelby:

Sen. Richard Shelby, R-Ala., now wants to know if the three CEOs did all their own driving. You can bet he has a driver, but that is not the point. Shelby is once again emerging at the biggest enemy Detroit has in this committee – and with good reason: As we reported last month, his state is home to more foreign auto factories than any other in the United States, and it has attracted those companies there by offering those companies billions in taxpayer dollars.

Shelby aside, there were some seeking to see things with a degree of common sense and understanding:

Sen. Sherrod Brown, D-Ohio, just hit the nail on the head, exposing the double-standard inherent in this process: “We didn’t ask the CEOs of the banks to drive here in Wells Fargo armored cars … We didn’t ask them to appear before us … We didn’t ask them for a plan on how they’re going to spend the money.”

——

I’m sure the media will start prognosticating on the Big 3′s performances soon enough. It’s hard for me to tell just slashig through commentaries. I guess you really needed to see things for yourself.

——

What’s evident to me from the Congressional stuff, the Saab coverage from Europe and the chat I had with Eric Geers is that there really are two games in play for Saab right now.

Saab Sweden’s job is to come up with a plan that secures their funding for continued operations over the next 18 months or so, whilst they roll out their new model range. Their end-game is to obtain guarantees so that they can show the corporate parent that they’ve got a genuine chance at getting through.

They need the Swedish government or a consortium of other partners to replace the corporate funding that’s previously come from Detroit or GM Europe. That funding will get these cars finished and ready for market, after which the plan says they’ll be able to actually make money and provide a return to their investors.

I think we’re all pretty fortunate that the new Saab 9-5 and 9-4x are so close to coming to market. If they weren’t then GM’s options with Saab would be much clearer and the decision that much easier to make.

If Saab Sweden can obtain the guarantees that they’re looking for, then the ball is back in Detroit’s court – and that’s the second game that’s in play here.

Detroit have given an undertaking to the US congress that they would put Saab under review as part of their restructure. The options for that review include the much-covered sale of Saab, but they also include selling a stake in Saab to a partner or obtaining bridging finance for Saab via the Swedish government until the new models roll out and Saab can finally start realising some of their potential.

To give Saab a pass is going to require a locked down, watertight set of guarantees, most likely from the Swedish government. GM have have a whole heap of future finance for their North American operations riding on them fulfilling their commitments as documented and presented to Congress.

I think that’s about it in a nutshell. Saab can do all they can on obtaining guarantees, but at the end of the day, GMNA call the shots and Saab’s fate will be up to them.

–

I’ve just got off the phone with Eric Geers from Saab Sweden once again and we chatted about the options that Saab are currently pursuing.

We’ve read in reports from Swedish newspapers that selling Saab is quite a way down the list of priorities for the senior executive at Saab Sweden. I can tell you from my conversation with Eric this evening that that definitely seems to be the case.

Whilst reports say that there are a number of parties that have already shown some interest in Saab, our conversation focused on Saab’s #1 priority right now: ensuring funding for ongoing Saab projects and trying to persuade the Swedish government to assist in creating market conditions that will stimulate activity.

——

Trollhattan Saab: You’ve been busy?

Eric Geers: Man, let me tell you, it’s been unbelievable….all up to the announcement and then afterwards – all night. And then at 6.45 the next morning we had the TV stuff….then radio and more TV. The day was completely full. Let me tell you, last night, almost the whole night there were people standing in front of the gate.

This is how emotional Sweden gets about this. This is what the car industry does to Sweden.

TS: I imagine if was Holden here, people would be going crazy, too.

EG: Yeah, it was incredible. There’s a lot of people involved here. You have the car industry, you have the government…and everyone’s look now not just the survival of the car industry but there’s government issues; from a labour perspective, etc etc. Here in this country, 15% of our exports are related to the car industry. It’s the biggest contribution there is…

TS: So what are you telling them all?

EG: What are we telling them? Well, what is your view on what’s happened?

TS: I’ve been reading all of the reports and getting as many translations as I can and it seems to be that selling is not something that’s being looked at closely right now (in Sweden). It seems to be that it’s probably being explored but it’s not something that’s being looked at closely. You’re looking at other alternatives first. There hasn’t been too much detail on what those other alternatives are…

EG: No. There’s basically no detail at that level on the plans. Absolutely not. If you use the term “strategic review” then, looking at Volvo, for example, people think that means we’re going to sell it but what people tend to forget is the other side of it, that there’s other options. Now, the question is, is it at the top of your option list or is it at the bottom of your option list? And the other options are basically forgotten. So what we’ve been trying to tell people is that we are looking at other ways of financing future Saab business, which is basically what we’ve been doing for the last few months.

TS: I guess a lot of people assumed a sale because of what’s happened with Hummer

EG: yeah, but there are also a number of other options. I think it was around eight months ago that they announced the strategic review for Hummer

TS: it was a long time ago….

EG: it’s seem that the only thing that’s in the media is then, OK, it’s for sale. And the same has happened to Volvo. Whereas the other options were forgotten. So we tried to explain yesterday what that could be and why they will be, as we see it, on the top of the list…..

….It involves a number of options that we’ve considered, like project-based funding to even equity ownership. We’re looking for the best financial options that will secure a good outcome for a successful Saab business.

TS: With the equity ownership option, does that mean that General Motors would be a joint venture partner with someone else in operating Saab?

EG: You might look, for example, at the Swedish state being a part owner. That could be for a bridge period, for a short time. That’s the sort of thing that we’re looking at. It doesn’t necessarily have to be like that. You could also say that we’re looking for external funding and look at specific projects. Now, what those things are is not something that we talk in public about but we have a few people and partners that we’re talking to.

TS: So the other day when Fritz Henderson gave his call about the presentation they were doing for Congress, he didn’t mention any of these other options for Saab. He said that it was going to be under strategic review and the only specific option that was documented really was the possible sale, which I think is what has got a lot of people talking about a possible sale.

EG: Well, he did mention when he was asked the question by Automotive News that there are several options including the sale of Saab.

TS: I guess we’ve all focused on that option because it’s the only specific one that’s been mentioned…

EG: ….which is understandable. If that’s the only one that’s mentioned then it will tend to come out like that.

The other part of what we’re talking about with the Swedish government is, as I said, securing funding for operations, including the development of next generation product, etc.

TS: Is that where the problems with the EU rules come in?

EG: Indeed. They can’t just say “here’s a bag of money. Good luck with it”. They will look also at what the German government are doing, what the French government are doing – they are focusing a lot on their own countries. It’s a bit of a puzzle that will require a lot of discussion between governments and with the EU and so on…..One element of that is reasarch and development, which is allowed within the legislation and then there’s other things.

So what we’re looking for is security for finacing for the Saab business and whether that’s state ownership or guaranteed loans or something, that’s up to the government to decide. It’s not only part ownership that’s the option.

TS: So that’s guarantees for loans, should you need them?

EG: No, it’s guarantees to be able to finance future business requirements

TS: So that’s pouring money straight into the business rather than providing guarantees for loans?

EG: Well, as I said, either you own a stake in the company, which means you buy part of the company, which could be for the short term, or you guarantee a loan because in the current market it’s not easy to get finance.

If you look at the 9-5, which now sells around 15,000 and then you look at the 60,000 we sold when we first launched it, you can see where we’re going….we believe that at around 150,000 to 175,000 cars, we’ll have a good business. So if you add the numbers from the 9-3 to the new 9-5 and the 9-4, especially with the 9-4 being made in the dollar zone, then we have a pretty good chance. And we believe firmly that that’s going to be the case.

TS: With your own economic situation, have you heard anything from the Swedish government about if or when they’re going to provide those incentives that you’re looking for?

EG: At this point the Swedish government has not presented anything. Yesterday there was an expert Swedish commentator on Swedish television saying that he believes something might come next week or so, but really we don’t know at this point. We just say “hurry up a little”

TS: Can they move that quickly given that it’s close to Christmas, etc? I imagine that’d be something that would have to go through the Swedish parliament.

EG: I’m not sure exactly how that will have to work, but I know that things will have to move quickly.

TS: Do you know roughly what sort of time frame you’ve got to present a case to General Motors in Detroit?

EG: No, but as to the external partners and funding and so on, I think within a few months, that’s what we believe. With the Swedish government, we just ask that it comes fast. There’s a lot of pressure now, from people: commentators and experts, the other parties who are not currently in government. But the discussions we’re having with government now are very constructive and very positive.

TS: If the government does decide to take a stake, and it sounds as if that’s a primary option that you’re pursuing right now….

EG: Well no, that specifically is not the primary option. But at least, we want to have some option from the government, some guarantees to secure future financing of the Saab business. How they do it is something the government will have to decide on.

TS: OK. Well if they do that for you, isn’t that going to put a lot of pressure on them to do it for Volvo also?

EG: That might be. Volvo…Saab… everyone has different requirements. It might be that it’s going to be similar. We’ll have to wait and see about that.

–

TS: Thank you. I think that’s enough for me to digest for now and I hope you have a calmer couple of days.

EG: Yes. I think the last call last night ended at 1.35 in the morning and at 5.37 in the morning there was another one. At least there was a few hours in between.

TS: Was that local people or people in the US?

EG: Swedish media. The Swedish media is extremely engaged, extremely engaged in everything that’s going on with the car industry. Lots of experts and lots of opinions.

TS: Including me!! I’ve got opinions flowing everywhere at the moment

EG: (laughs) exactly……..here in Pixbo, where I’m standing, we have the next generation 9-5 in this building..

TS: You’ve got it standing in the building where you are now?

EG: Yeah.

TS: Send me a photo! Just snap one with your phone and send it to me.

EG: (laughs) it’s an awesome car. Extremely cool.

TS: Is that a moving version or just a clay model?

EG: It’s not one one with complete engines, etc. It’s more one for working the interior and so on. There are moving ones out there, too, but they’re not in this building, so…

TS: You mentioned interiors, so I’ll ask you an interior question if that’s alright…

EG: Yeah

TS: The concept interior for the 9-4x and all that lovely dashboard treatment that we saw, is that being carried through to production with either the 9-4x or the 9-5?

EG: What we’re trying to do with current concept cars is not to be too far off the real production cars. So that goes for external and for internal design. Now, whether it’s glass or what else it might be, I can’t comment too much, but it will be….close. It will be different, very different.

——

Once again, I’d like to thank Eric Geers for taking the time to chat at what is without doubt, one of the busiest weeks he’s had in a long time.

–

UPDATE: CNN Money Report at the bottom

UPDATE II: Automotive News comment

UPDATE III: Swedish minister meeting with German counterparts

——

Swedish newspapers Dagens Nhyeter and Dagens Industri have run a few articles featuring comments by Saab Sweden’s Jan-Ake Jonsson and Eric Geers.

Thankfully, ctm’s provided a translation of the salient points. I’ll get to work on a full translation shortly.

——

Jan-Åke Jonsson at Dagens Nhyeter:

He does not interpret the strategic review as Saab is up for sale – despite that Fritz henderson said that GM is looking for a buyer.

He says that Saab is now working on a plan to secure the short and long term funding.

He characterizes the current dialogue with the Swedish government as “good and constructive,” and he sees major possibilities for the government to ha ve a positive impact in this “critical situation.”

- “The government now has the possibility to have some influence and create some cooperation between the four auto industries in the country.”

He thinks that Saab is well prepared when that market gets going again, and claims that the brand is an important part in the GM brand portfolio.

- “Saab is GMs only European premium brand in a growing and important segment.”

——

Eric Geers at Dagens Industri:

- “A global strategic review of Saab does not mean a sale of Saab, but rather how we can secure the future of Saab and how to raise the money.”

- “It could mean that we work together with an external partner.”

- “There are a number of interesting possibilities. But, of course, you can never exclude the possibility that we sometime will be sold.”

He points out that the most important now is to secure the future products and the funding of those.”

Do you think that Saab will benefit from the money that GM eventually can get from the Congress?
- “It depends solely on the Congress and their attitude. One could imagine that there will a bit too much America.”
- “But it is probably the same with other governments.”

As many others do, Saab also seeks support from the government. But so far, it has been without much result.

- “The current economic situation is as it is. But it extremely important to find a solution to secure future investments.”

——

From CNN Money, a further comment on the Jan-Ake Jonsson interviews:

STOCKHOLM (AFP)–Several companies have voiced interest in purchasing beleaguered Swedish car maker Saab if its owner, struggling U.S. giant General Motors Corp. (GM), decided to sell, Saab’s chief executive told Swedish public radio on Wednesday.

“There are many interested parties. I don’t want to mention any specific names but there are many (interested) companies that work with development and support car production, both in Europe and outside of Europe,” Jan Aake Jonsson said.

“There are many different alternatives and I don’t want to go into specifics but it’s obvious the discussions we have had so far have been with companies within the automobile industry,” he said.

Jonsson’s comments came a day after GM said it would “review” the future of its Saab and Saturn brands as it struggles to survive and restructures its business to focus on core brands.

GM said it will “immediately undertake a global strategic review of the Saab brand,” in a statement outlining a restructuring plan it presented to Congress in hopes of securing some $18 billion in government-backed loans.

BMW AG (BMW.XE), Renault SA (13190.FR) and Tata Motors (TTM) are all reportedly potential buyers.

BMW?

Not according to the last report. But that was then, I guess.

——

And from Automotive News:

With Ford Motor ready to sell Volvo and General Motors considering a possible sale of Saab, Sweden is being hit badly by the storm that is currently threatening the whole car industry.

The question is not just who would want the Swedish brands, but why would anyone want them?

…..In terms of being green, Saab is ahead of Volvo with its biofuel and turbocharging technology.

GM has neglected Saab’s brand character for too long. The Swedish brand has only received the attention it deserves in the last couple of years under Carl-Peter Forster, who is GM Europe’s president and Saab’s chairman.

Forster’s new Saab model range has still not been revealed but the 9-X BioHybrid and 9-X Air concepts have received very positive responses.

If GM sells Saab, Forster will neither enjoy the fruits of his efforts for the brand nor will Ford ever benefit from its commitment to develop Volvo into a world class brand with strong premium values.

——

I’m absolutely knackered from the last few nights, so please forgive me if I limit my own comment on this stuff and just pass on the news in bulk.

——

From Reuters:

Sweden’s industry minister said on Wednesday Sweden was talking to German authorities regarding its auto sector and she hoped to have more information soon on car units Volvo and Saab now the intent of their U.S. parents was clear.

Industry Minister Maud Olofsson told a news conference she does not think the state should be in the business of owning car companies.

“I have talked to my counterpart in Germany who is working on these issues. These (talks) revolve around the fact that Saab and Opel are very closely linked and we of course want to know how Germany is thinking about this,” Olofsson said.

“We want to know how they see their relationship with Opel and we will intend to try present how we see Saab’s situation. But in the current situation, these (talks) have had more of an exploratory nature.”

–

The full text of GM’s submission to the US Congress leaked early (surprise surprise).

To save you all the trouble of looking, here’s the only sentence in the 27-page document that mentions Saab:

GM will also immediately undertake and expedite a strategic review of the Saab brand globally.

That’s it. One sentence. 15 words.

To make that little bit of corporate-speak clear – Saab is now up for sale.

You guys keep posting in comments. I’m going to try and make sense of it all and post a summary up here on site so keep checking in.

I’d also like to take this opportunity to scream a nice, loud SCREW YOU to all the mofos at GM have who have sucked the life out of our favourite little brand and now intend to hang it out to dry. May the hairs on your bum turn into fish hooks and rip the sh!t out of you.

——

Comment of the moment, from Troll96:

Notice how GM plans to increase its emphasis on flex-fuel cars, hybrid technology, turbocharging and 4 cylinder engines. So, of course, Saab has to get the ax. Am I missing something here?

Rignt now, in the heat of this particular moment, I hope Wagoner’s Malibu hybrid breaks down on the way to Washington.

——

Here are the bones of the GM plan for those who can’t be bothered reading through the whole thing:

GM’s plan involves the following moves:

• Slashing hourly costs in North America by $3.6 billion in an attempt to make GM competitive with foreign automakers no later than 2012. GM currently has 96,000 workers and the goal is to have 65,000 to 75,000 workers by 2012.

• Reducing or eliminating four of its eight brands and cutting the number of dealers. The plan involves exploring the sale of Saab, talking to dealers about the future of Saturn and shrinking the Pontiac brand to more of a niche offering.

• Cutting executive compensation and eliminating its corporate aircraft fleet. CEO Rick Wagoner will take a $1 salary next year, and GM is cutting the top four senior executives will see their cash compensation slashed 50 percent in 2009. Neither Wagoner nor top executives will receive bonuses this year or in 2009.

• Complying with the Energy Independence and Security Act of 2007, which was designed to improve fuel efficiency and cut dependence on foreign oil. GM outlined its current lineup of cars and crossover vehicles and plans to shift its portfolio towards producing even more of the fuel-efficient vehicles. For 2009, GM has 18 models in the U.S. that gets 30 mpg on the highway and that push towards more fuel-efficient vehicles will continue, Henderson said.

The bill for all this?

GM is asking for $18 billion in financing, which includes a $12 billion loan and a $6 billion revolving line of credit that would be tapped if the market worsens.

The automaker would make several withdrawals of the cash in coming months. GM needs $4 billion this month to pay its bills and would draw $4 billion more in January.

GM would make a $2 billion withdrawal in February or March for a total of $10 billion. The remaining $2 billion would help ensure GM has enough cash to pay its bills through the end of next year, assuming an annualized sales rate of 12 million units.

The $6 billion line of credit could be tapped if the U.S. auto industry worsens to an annualized rate of 10.5 million units.

–