GM's Saab must boost output to make money - paper

Mon Feb 21, 2005 04:21 AM ET

FRANKFURT, Feb 21 (Reuters) - General Motors (GM.N: Quote, Profile, Research) remains committed to its Swedish car brand Saab, but thinks Saab must nearly double output to make money consistently, GM Vice Chairman Robert Lutz said in a newspaper interview.

"We like the brand, and we want to retain it," Lutz told Automotive News Europe in an interview published on Monday. "We will do what is needed to keep the Swedish character of Saab."

But GM's determination to stop losses at Saab means the brand may not remain an independent Swedish carmaker, the paper reported, noting Saab lost $200 million in 2004 because of poor global sales, adverse currency influences and high manufacturing costs at its assembly plant in Trollhattan.

GM has decided to keep Saab, the paper said, citing GM sources, but wants to make sure it operates profitably.
It quoted Lutz as saying it would be "almost impossible" for Saab to make money producing fewer than 250,000 vehicles a year. Last year Saab built 128,646 units in Trollhattan. "We cannot subsidise a factory for that," Lutz said.

GM, in the midst of cutting its European workforce by a fifth to stem chronic losses in the region, is due to announce by the end of March whether it will build its next-generation mid-size car in Trollhattan or at the Opel Plant in Ruesselsheim, Germany.

Models built on the so-called Epsilon architecture include the Opel Vectra, the Saab 9-3 and the planned Cadillac BLS, built specifically for the European market.

Automotive News cited German sources as saying say it was almost certain that Ruesselsheim would produce the Epsilon vehicles. But GM may make other vehicles in Trollhattan, it added, quoting a company source.

One option GM has considered is for all Saab models to share architectures with other GM brands, including engines and transmissions, the paper said.

A Saab design team would add "Swedishness" to Saab models derived from other GM divisions and affiliates. It said the same team developed the Saab 9-2 based on the Subaru Impreza and the Saab 9-7 SUV derived from the Chevrolet TrailBlazer.

 

I pray that GM does not mess this brand up. For some reason I always had some sort of.... well not love, but I always like their designs, if wierd to some. SAAB grills and headlights always been a favorite of mine and so has the center consol ignition location.The hatchback 900SE and the 9-3 Viggen in the birght blue was soooo hot looking. I kinda like the new 9-3 however their is so much better out there in that price range, nad they made it like anyother near luxo car. A sedan. I liked the 9-2X, however they didnt do enough on the interior to differenciate the two, and a hood scoop on a SAAB just isnt right. The 9-7X looks like it has potential with its big rims and lowered suspension and it comes from a respected platform, however, no matter which way you cut it, its still a heavily rebadged Trailblazer and contains no Turbo. What kind of SAAB doesnt have a turbo?? Thats like Subaru with no AWD.

But what could save this brand??I know that the 9-2X and 9-7X are just fill in cars for now, but what will these next generation cars look like?? Does the US still think hatchbacks are attractive?? Should they create some sort of crossover, i.e. Matrix, Vibe, R-class?? Should they go higher than the 9-5 which desperately needs a redesign?? More or less platform sharing with Opel which by the way has some attractive designs?? And to top it off, Saturn is moving upclass and their cars are looking like rebadged Opel's?? I dont know what GM is doing, and quite frankly, I dont think they do either. Only time will tell.

 

In this day and age of global markets and super-size companies, SAAB will have to either fold or be a basic GM tarted up brand. Only BMW is owned by BMW. Everyone else has their pockets in another company.

I think SAAB fans will miss the brand, not much of anyone else though.

 

Saab screwed themselves up. They lost $200m last year. GM is just trying to clean up the mess.

 

SAAB, Isuzu, Mitsubishi, I'd like you to meet Oldsmobile.

 

Bob Lutz says he wants to keep Saab around. To close the would definetly result in ill will towards GM in Europe.

But SAAB will never really effectively compete with the Big Two from Japan.

I drove a fairly new S80 the other week, the car is just like CR says. It is no subsitute for a well executed Japanese car.

 

You do know the S80 is a Volvo (a Ford product), right?

 

I bought a 2003 Saab 9-3 (the redesigned sport sedan) pretty soon after it first came out in December 2002 and had tons of problems with it... got rid of it in July 2004 for my Infiniti FX35. That's the shortest amount of time I have ever had a car... would never buy another one.

 

Saab's not going out to pasture yet. True, compared to many other large companies, they are essentially a small and niche automaker, but they STILL have a rather strong and loyal core of customers here that include people of Scandanavian descent, environmentalists, safety advocates, lesbians, and far-left-wingers in general....about as far as I, Mr. Anti-stereotype, will go in classifying a car image-wise. Bob Lutz DID, however, make a mistake in dropping the Saab hatchbacks....one of their most popular features....and badging new Saabs under the GM world platform sedan designs. That, unfortunately, cost them some customers. The only Saab hatchback (the 9-2X) is not even a Saab but a upmarket Subaru Impreza....I have seen it and driven it.

 

Just another Saab story...

My neighbor is parts manager at a Saab dealer and says Saab has product plans through 2008 so unless GM just pulls the plug they will go on.

Saab's are 'unique' cars but I just never found their unique qualities appealing - qualities like rough ride, strange steering, staggering turbo lag, ignition keyhole in the center console. Basically f-ugly. The Saab convertible isn't bad though. Very popular with gays by the way.

 

Saabs have their quirks, but that adds up to their uniqueness. Too bad GM is enforcing a "cookie cutter" policy throughout their organization.

 

Just to let you know a little something something about those cars:
http://www.saabnet.com/tsn/press/000704.html

 

Gotta disagree, Vegas........Saab did not make the decision to cut out the Saab-design hatchbacks, which cost them some of their traditional customers. THAT was a GM management decision for.....( what else? ).......to save money by standardizing world platform designs. That was Bob Lutz's first goof. His second goof was not dropping the Pontiac Aztek several years ago. His third goof was introducing the GTO last year without hood scoops.....but overall, even in spite of a few goofs, he has done a pretty good job .......FAR better than the line of bozos that preceded him. Roger Smith, especially, was an idiot.

 

Clear that up, is the S80 a Volvo or a Ford, I read the S80 was a Volvo and that S80 platform was what Ford used to build the 500 and Freestyle on, since the S80 has such a weird body thats why the 2 Fords look so round and boring and the S80 platform also provides the 2 with an AWD option, so it's a Volvo design that Ford is using

 

I'll clear it up for you guys....the S80 is NOT a Ford design...it is a true Volvo.
But....Ford has also benefitted from Volvo ownership.....from Volvo's safety features to its Haldex AWD systems. Volvo's RSC (Roll Stability Control) is now being adapted to Ford's SUV's and the Haldex AWD system is being offered (along with a CVT transmission) on the new Ford Five Hundred / Mercury Montego and Freestyle / Monterey.

We kind of got off topic, though....Saabs.