Posts tagged ‘Trollhättan’


Saab to get €245 million if Pang Da and Youngman deal approved

04.07.2011

Today, from Saab:

Swedish Automobile N.V. (SWAN) and Saab Automobile AB (Saab Automobile) today announced the signing of final agreements with Pang Da Automobile Trade Co., Ltd. (Pang Da) and Zhejiang Youngman Lotus Automobile Co., Ltd. (Youngman), thereby converting the non-binding memorandum of understanding relating to the equity investment of Pang Da and Youngman …

The amount of the investment is €245 million, which amounts to this, according to Saab (some proofreading changes by me):

The agreements allow for the return of Mr Vladimir Antonov as a shareholder–financier of SWAN and Saab Automobile which the parties expect as soon as the parties at interest have cleared him. The NPJV will be 50 per cent owned by Saab Automobile and 50 per cent by Youngman Passenger Car, and forms the foundation for an expansion of the Saab product portfolio with three models which, until now, did not form part of Saab Automobile’s current and future product portfolio. As such the NPJV will focus on developing three completely new Saab vehicles: the Saab 9-1, Saab 9-6X and Saab 9-7.

   No doubt there will be existing technology in the three cars, and they should go down terrifically in China. And if it all goes well, this means that Saab won’t follow MG Rover down the gurgler, despite having been unable to pay wages a few weeks ago.
   But €245 million isn’t that much in today’s world, especially since Saab can’t be breaking even at its present capacity.
   I don’t want to see Saab disappear. It may have been the choice of TV villains (Leslie Grantham in both The Paradise Club and 99–1 comes to mind) as well as one or two real-life ones I can think of, but it’s a storied brand and it’s made good cars over the years. And a mate of mine has a 900, too.
   Sweden hasn’t spent all these years bagging the brand, either—it was effectively stripped of its Saab-ness while under General Motors.
   Let’s hope the company can get things right with the Chinese equity stake, which hopefully will provide more confidence. It’ll open up distribution in China, providing the government agencies agree, where a foreign brand like Saab would go down immensely well, and just at the right time. Good timing was not something that MG Rover was blessed with, regardless of the actions of the Phoenix Four.
   The discerning Chinese buyer is emerging on the mainland, and they don’t necessarily want the flash of the Mercedes-Benz. A more subtle brand might work there, and Saab actually fits the bill.
   The 9-7, I assume, is a large car, and Youngman’s Pang Qingnian hints that not only will China get this model, but the US as well.
   Good luck to the parties on this one—here’s hoping the worst is over.

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Saab promises new generation of cars will have original DNA

26.02.2010

Rumour has it that the new Saab—a small car (finally)—will resemble the ur-Saab, the 92. In fact, inside Saab, it has the codename 92.
   Where have I heard this one before? I know. Stefan Engeseth’s Detective Marketing, 2001 edition. And from what I understand, since in 1999 I could not read much Swedish, it featured in the original Swedish edition, too.
   While I am no fan of retro design, a modern one that has strong inspiration from Saab’s roots could go down well with the market—especially if the new 9-1 model had some advanced, non-fossil-fuel powertrains.
   A car tied to Saab’s roots as an airplane manufacturer could reinvigorate passion for the brand in the same way as the Jaguar mascot unveiling under John Egan in the 1980s. And new boss Victor Muller, CEO of Spyker, has wasted no time getting Saab loyalists excited about the brand again. He has not set his sights on brand-new customers: he wants the old Saab buyers back.
   While it might have Opel underpinnings, it at least gets Saab into the European premium compact car game, one which GM denied it, probably due to overlap with its mainstream brands. It was an opportunity missed as BMW, Audi and others broke in to the compact and supermini game.
   I know at least one Swede who finds Muller’s promises exciting, and I sincerely hope to be proven wrong when I expressed doubts about bringing a 40,000-sales-per-year company back from the brink. Below is the announcement of Spyker finalizing its purchase (via Detective Marketing).

   When he talks about ‘DNA’, Muller really means brand: it will rediscover and redefine that brand and its entrepreneurial spirit, using it to fuel the corporate culture, and having that drive product quality, R&D and other functions. If he succeeds in reaching his 100,000-per-year goal, then we can say that brand loyalty was a huge driver.
   His first announcement alone has been praised, Saab’s 100-day plan gives distributors and loyalists some certainty, and the folks in this video actually look enthused—already this is not like a tired, Rover-style attempt at getting the company back on its feet, even if the annual sales’ figures are far worse than what the English company had prior to its collapse.

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