Saab-Koenigsegg theory

| 16 Comments

Karen has dug up a very interesting article studying one man's view as to how the new Saab-Koenigsegg operation may look.

Our writer's name is Turan Ahmed and he writes for an opreration called investment-auto-motives, based in the UK. I'm not sure of this guy's credentials and I disagree with his reading on several fronts:

  • His opinon, whereby the Swedish government are helping to facilitate this union is one I haven't encountered anywhere else.
  • His inclusion of FIAT as an original bidder with Renco and Merbanco is an error. Fiat are the government's favourite, but did not lodge a bid, did not take 'the tour' and were only ever interested in Saab as part of a deal for Opel.

Reading such things gives me cause for caution with regard to the rest, BUT his thoughts on what Koenigsegg might look to do with their new acquisition (providing it all goes ahead) are at the least, quite interesting and he seems to speak the automotive language.

The full article is here and it's a long read, but well worth the time.

Here's a few of his thoughts on various areas of the K-Saab operation. There are plenty more at the link for you to have a think about, too.

They're just theories, but somewhat enticing ones in some instances (and perhaps fanciful in others).

Business Strategy

This approach appears to indicate that Koenigsegg apparently wishes to raise profile by:

  1. Becoming 'the' prominent player of advanced engineering applied to volume production.
  2. Use its core competencies as the catalyst of metamorphosis at SAAB
  3. Use SAAB to access off-the-shelf, lower cost front-engined architectures (Epsilon 2 to broaden own product range - (vs Merc CLS, Maserati Quattroporte, Porsche Panamera, Aston Martin Rapide, Tesla Bluestar/Whitestar, Fisker[Quantum] Karma) -and use Delta platform for smaller footprint vehicles.
  4. The creation of a fully fledged Engineering Consulting division for external client work
  5. Providing opportunity for Koenigsegg to access Opel-Magna given technical origins
  6. The opportunity for Koenigsegg's eco-developed GM-SAAB platforms to be offered for contract manufacturing purposes to 3rd party '21C' car companies that focus on brand and outsource all manufacturing and build.

Product Strategy

To critically take-control of product planning and implementation using adapted Epsilon2 platform (9-5), adapted Delta platform (9-3), thus able to focus on high-value systems improvement (eg powertrain, drivetrain, chassis, electrical) since low-value capital intensive BIW (Body) system already in place.

The marriage of small and large operations that are respectively advanced and conventional offers a new spectrum of possibilities:

  1. The opportunity to leverage a supercar name for SAAB via cross-over branding ties.
  2. Thus create a new premium/performance division for SAAB similar to Mercedes AMG, BMW M-Sport, FIAT Abarth et al
  3. Possible 3 tier product orientations of: Base > Viggen (sport) / Griffen (lux) > Koenigsegg
  4. This would theoretically enable stretch beyond the current credibility constrained price ladder so reaching into BMW, Audi and Merc buyer territory.

Design Strategy

  1. To gain greater cross-range aesthetic cohesion which has been lost.
  2. Presently the SAAB styling cue palette is overlayed onto less than optimal body dimensions, proportions and forms).
  3. Maximise the opportunity to regain the conceptual purity of Sixten Sason's design language sympathetic to aero and modernist functionality.
  4. (As re-layed by the reference-point created by the 'Aero X' concept).
  5. 'this will be a prime element of SAAB's rebound and so the upcoming vehicles (9-5, 9-3, 9-4X etc) together espouse a 'clean cohesiveness'.

As mentioned, these are only a few of the thought threads on offer in this piece.

I think a few of them are a little unrealistic in the near to medium term, which is where thinking about K-Saab should probably be focused.

But it's some interesting Saab-focused thinking that can get you feeling good about the prospects for the future if you let it.

------

Thanks again to Karen for the find.



16 Comments

Haven't gone the distance on Turans article yet but the segments here pose some aspects of the deal that have already been raised across SU and would seem to make a lot of sense. Ignore for a moment Saabs dire financials ( which cannot be ignored at all of course) and its hard not to see a blue sky upside in terms of design, engineering, marketing and product if SAAB-Koenigsegg hits its potential. Theres clearly a ton of work to be done but these ideas perhaps point out some of the direction that could be taken.


Thanks Swade. As a note of clarification, my understanding is that investment-automotives is Mr. Turan's consultancy, or his blog for his consultancy. He has an "A" client list, and his blog is a marketing effort, seemingly targeted to investors looking for opportunities in the global automotive sector, from engineering to parts.

It was particularly interesting to start at the chronological beginning of his Northern European "eco-tech rainbow" concept, of which this was the most recent post mentioning Saab.


@DMR, yes, The Economist! I just love watching the media echo that ripples out from them every week. One can actually see market movements and foreign policy adjustments.

Fingers crossed the Swedish Government is reading both...


Good write-up overall, but also smells of wishful thinking. I or any other pundit could easily come up with these "strategies" and then some; where it gets all interesting is when the budgets, fixed costs and ROIs enter the picture.

We are still to see whether the Koenigsegg group will have enough cash to sustain Saab as is, let alone develop new models and go after AMG, M sport and RS. There could be a mayday call when they realize how much money goes into a large mainstream manufacturer with warranty costs, established competitors and marketing budgets factored in.

I hope Bård and CvK have as much patience as they have balls, and their financial backers as much money as we like to think. This business is not exactly known for fast turn-arounds and immediate rewards. Rather nasty when you consider GM, Opel and whoever owns it and the Swedish government will all be in the picture, too. And the EIB, of course.


Kroum +1


BMW is about to reconnect with its plane manufacturer roots by introducing its first Lear jet according to Swedish business tabloid di.se . (Interiors only)

My own thoughts;

Born from Jets, might be no more for Saab when competition out-exploits its plane connections far better.
Saab used to have double engine planes in its logo, but replaced it with a 'sitting duck'.
BMW has kept its propeller moving, by sticking to its original logo.

Saab really needs Koenigseggs super sparkle, to be taken serious from a branding point of view. Im glad Saab was not sold to a tractor company in the end. When is saab gonna exploit its supercomputer background from the 60s, DATASAAB is cooler than Apple computers.


Wow Saaburban, you raised some interesting stuff there. Agree that Saab shouldn't ignore its "coolness" factor. It can go a long way with consumers - its just that the business needs to keep up!

Just checked Wiki on DataSaab - hell of a story worth anyones 5 min to read. Spys, espionage....Fascinating.

Don't quite follow your BMW/Lear jet point - can you expand?

But on the tractor company comment - assuming you're referring to Merbanco. Saab hasn't been sold to anyone yet and I think its a while before the fat lady sings on this deal. Koenigsegg can add a lot to Saab and as a car nut it means a lot to me personally; but I wouldn't be so dismissive of Merbanco, they have a lot of expertise to offer. They were in the ag business with Aggco but they're essentially an equity platform which has done plenty of other, much larger things. Most of which are not in the public domain. Nonetheless, the "tractor company" could actually help Saab quite a bit, just in a different way to Koenigsegg. An ideal might even be if they worked together to rescue Saab but I'm not betting the farm on that just yet.


Hmm, maybe I should not buy this 900i next week. I could NEARLY get this one for the money. ;-)


The name should be enough to remember:
Svenska Aeroplane Aktie Bolag = SAAB.

BTW what aeronautic heritage has BMW (Bayerische Motoren Werke)got besides being a engine manufacturer for propellar planes in the early 20C

AFAIK they never made flying machines.
They were engine supplier -only.

That their logo should be a propellar is NOT correct. It has nothing to do with a engine at all !
It symbolizes the white and blue colours of the Bawarian flag that they used from the start.


Comments are not meant to be a link dump. I know this. Yet I wanted to share a fun story from the New York Times with an audience I know will appreciate it:
http://www.nytimes.com/2008/07/06/automobiles/autoreviews/06AUTO.html?scp=1&sq=koenigsegg&st=cse


AMS has a nice CGI on NG Saab 9-5 Wagon on the magazine that will be published on friday:

http://www.automotorsport.se/uploaded/image/2009/7/8/ams_2009_15_omslag_200_0.jpg


That AMS pic is based on the covered SAAB from secret future room. Like I tried to do few days ago:

http://picasaweb.google.fi/lh/photo/Uxea4RDQxhB8VF6pYi3_-g?authkey=Gv1sRgCMK7l4HBpI7f2AE&feat=directlink

So, it seems that they (AMS) too believe the official CGI is correct.


Peter +1 thanks for the early morning imaginary drive in the CCX on roads I know well enough in reality. and for clues to finding K-egg's New York dealer online. Just made this K-Saab story much more interesting knowing the K-egg dealer's local showroom and service team is in Glen Cove, Long Island. also answers my question of 'where do people actually drive a K-egg in New York?' answer? 'on your estate, or to the golf or yacht club along the side streets'


K-egg seems to be quite advanced in use of carbon-fiber...


One of the comments from the article hit home for me:

"Maximise the opportunity to regain the conceptual purity of Sixten Sason's design language sympathetic to aero and modernist functionality."

That's the essence of Saab's design identity and Sason's concepts must be embraced once again.


A dash of Sixten Sason's apprentice Björn Envall's designs wouldn't go astray either!


Aeropilot, I pretty much agree with you but if you look at the very old BMW logos or read their history info the logo is always about propellors. To me its a combination of both. The Bayern Flag & the propellor heritage.


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This page contains a single entry by Swade published on July 8, 2009 8:58 AM.

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