GM/Saab agree on technology use
March 25, 2009 in Archive
Dagens Industri are reporting that Saab have agreed on terms with General Motors whereby they’ll be able to continue to use patented GM technology for up to 10 years.
This was always expected to be the case, so this is not so much news, but it is a positive development in that the report gives a few more nuts and bolts about it and talks a bit more about why Saab might have found profitability difficult in recent years.
The Google Trans:
GM cooperation secured for Saab
Updated 2009-03-25 07:41
Saab Automobile reorganization group has secured cooperation with General Motors, GM, for a long time to [help] sell the Swedish car company.
It has been revealed by Saab Automobile CFO Lars Heron Castle.
“GM will be a vital partner for Saab for at least five to ten years. Where we are with a new owner we will still have access to much of the technology we need,” says Lars Heron Castle.
He stresses that the relationship with the GM should not cost a Saab any big money.
“We exchange their technology to our offering of our safety technology, competence for chassis tuning and motorteknik. But we retain our most advanced turbo technology, the reeds most security technology and cabtekniken themselves, to maintain the strength of our brand,” says Lars Häger Borg, who has worked in Saab Automobile since 1997 and has an important role in the reconstruction effort.
Collaboration with GM is planned so that Saab will begin with a number of cooperation agreements on technology and services that will gradually cut to be phased out after perhaps ten years and be replaced by cooperation with other partners.
This means that Saab can use GM’s platform technology to produce cars for a long time.
Reconstruction of Saab Automobile has lasted more than a month and it needs to come to closure in order to ensure market confidence.
Lars Häger Borg does not believe that it is possible to have a buyer fully ready before the three-month recovery period expires.
“Our ambition is to have come far in the process during that time, with very specific facts about a new ownership structure. Then we have something to negotiate with the Government, so that it can put up a guarantee for a loan to make it easier for us to move forward, “says Lars Häger Borg.
He turns against Saab’s future opportunities are often judged on what has happened historically.
“We draw lessons from that Saab has been difficult to create profitability, but is aimed now at a future competitive Saab with acceptable profitability,” he says.
The parties that are now talking with Saab may take part of descriptions of a company with an operating margin of 1-2 percent, a sale which is gradually growing and in 2013 reaches 140.000-150.000 vehicles, and a pace of development in which models are replaced after six years as competitors normally.
Saab claims that this company will meet the new objectives of a Development of 5-6 per cent of turnover, which is considerably less than the approximately 10 percent Saab has had before.
“By working smarter, it should happen. It is no wonder that we have found it difficult to earn money, with full development and where the models often have been delayed or stopped. Our 9-5 model is now quite aged, and 9-3X was been out on the market before, “says Lars Häger Borg.
Buyers of Saab will be attracted by the value that has already been done in the next generation of 9-5 model and the new 9-4X.
He indicated that 9-5 could be a month late and will be launched early next spring.
9-4X will be launched in the second half of next year.
So far, approximately 6-8 billion has been invested in these new models, according to the DI.
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UPDATE:
Whilst the last part of the translation says the 9-5 will come ‘next spring’, the intel I’ve received says that Saab still plan to show the car at Frankfurt, later this year. A delay of a month or so as per the article may apply to production, but that’s something I haven’t heard about for sure.
