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BigEd December 9, 2009 3:40 PM

" But then building cars in Krona and exporting them into the EU and US was a recipe for red ink."

- really?

en.wikipedia.org/.../File:SEK-EUR_1999-2009.png

the graph above shows the rate of exchange between the Swedish Krona and the Euro after being stable for most of the present decade at SEK9=€1 went to nearly SEK12=€1 in the last 18 mths or so, i.e a one-third DEVALUATION of  the Swedish Krona compared to the euro - very similar to the British pound's 30% or so fall against the euro from late 2007 to early 2009.

This would of course be a boon to a manufacturer in Sweden paying costs in devaluing Krona and receiving income from sales in the Eurozone of appreciating euros. why do you write such nonsense before you check the facts?

As to US sales yes the dollar has fallen but Eurozone based car makers have been far worse affected, with the euro at one point, earlier this year hitting €1=$1.60. Mercedes are shifting some production of the next C-class to the States as a result. that's what successful companies do - they find a way to manage threats - unlike GM/Saab.

Anyways, it's plain what will happen - MG Rover mark two. lift and shift of the tooling; vague promises about having a Swedish-end operation, for design, production and so on, and then all quietly forgotten about after the protests die down, just like what has happend to Longbridge with Nanjing Auto/SAIC.

so forget your fancy Apple contracted manufacturing analogy. the Chinese don't want cast-offs, they want the whole shooting match by hook or by crook.

HiltonH December 9, 2009 5:41 PM

BigEd

OK, until very recently it has been a reciepe for red ink. But decisions that affect today's industry are made years ago. That's partly why the new 9-5 was originally scheduled for production in Germany, because 24 months ago Krona production made export to the US very difficult.

Saab's previous boss, Peter Augustsson, told me that the reason the interior of the 2003 9-3 was so cheap was because the car was 'designed to be profitable when sold in dollars'.

So an exchange rate that existed early in the decade had an impact on the quality of a car that's on sale today. A competitive devaluation after product plans have been rubber stamped is no damn use at all.

Shifting production to follow exchange rates is tricky, but possible it you have a global product strategy. GM's Bob Lutz imagined that cars based on the Epsilon 2 platform could be built on a number of different continents, including Europe, China and the US in order to make the best of exchange rate shifts.

BigEd December 9, 2009 7:20 PM

Look HH, we can see that it's the weak dollar that's been the problem throughout the last seven years or so - caused by Greenspan's stupid interest rate cutting after the dot.com crash and 9/11 - regards adverse exchange rates for Saab producing in Sweden, and not the euro.

but the at-bottom problem for Saab was out-dated, not at competitive level product, then compounded by each dollar they got from sales in the States going from ~10 Kronas in 2002 to barely 6 in 2008, and nearly back to that again now.

this is similar to the roller-coaster of x-rates for Jag and its US sales in the 80s under Egan, which eventually drove it into the arms of Ford.

Saab having GM as its parent should have had some shelter from the dollar's weakness but obviously different.

in conclusion, simply lack of fresh, competitive product and an owner, GM, that was more concentrated on saving itself and rationing resources to its faraway cinderella operation.

the Chinese will be the only ones to benefit.

Noraluminium December 9, 2009 8:05 PM

What is the addiction to Saab's Hilton? They are a pointless manufacturer with very little heritage that anyone really cares about. They have made glorified Vauxhalls for far too long. Vauxhall does that. They should go under too - rubbish cars bought by the masses that the masses can no longer borrow the cash to buy. Does anyone really want to own a fleet car with their own money?

ayrshirexc90 December 9, 2009 8:54 PM

Dear Noraluminium,

I think you are wrong. Saab has a strong but small band of loyal followers.  Yes, they are heavily based on Opel/Vauxhalls, but they are different. The Swedish input is what makes the difference. If they can return to the time when they were just that bit different, and just a bit quirky, I think they will have a future. They were never meant to be a BMW/Merc/Audi; if we think of them as unusual, slightly rare Sewdish cars, we would not be far off the mark.

MattDB December 9, 2009 9:45 PM

What wrong with a SAAB based on a Vauxhall when the insignia is as good as they say.  At least SAAB engineers have tended to improve upon the GM underpinnings they are based upon.  Volvo on the other hand seem to manage to take a really accomplished Ford platform and make it handle like a barge, but nobody berates Volvo for doing that.

HiltonH December 10, 2009 12:51 AM

Noraluminium

I think the automotive world would be a lesser place without Saab.

realdriver December 10, 2009 8:56 AM

The difference between MG/Rover and Saab is that Saab has a brand spanking new car just waiting to be sold. And it's probably pretty good too.

Saab is a brand with so much potential, it's incredible how the people at GM just threw everything in the bin. What a waste, all the money that was thrown into Cadillac with euro-specific models could have been put into Saab.

superheater December 10, 2009 9:59 AM

Well said all the SAAB supporters!  I too desperately hope SAAB survive and the new 9-5 is a success story.

I've had four SAABs over the years, the first being a 1989 9000 CDS, then two 9000CSEs and finally a 9-5.  It says a lot for GM's 'expertise' that my CDS felt to have a better build quality than the 9-5.

kcrally December 10, 2009 11:53 AM

so in summary, the chinese will end up buying saab, at the end of the day !

Chris Price December 10, 2009 12:10 PM

Do they want to sell it or not?  Simples...

RallyeSport Guy December 12, 2009 7:51 PM

Saab is a brillant brand, but it reputation was ruined by GM's lack of good management.if Saab does go under-and I hope it Does,nt- then the car world will be a sadder place.