This is a Google-trans of an article that’s just gone online at Welt-de. I’ve now edited it slightly for readability where I could do so.
It’s fantastic to hear something from Jan-Ake Jonsson again. I know they’re crazy busy right now with Koenigsegg’s due diligence and deadlines, but it’s very important to get this information out there so that stakeholders can have some confidence in the future.
Jan-Ake Jonsson is the perfect man for the job.
My thanks to Radulf for the link.
——
What Saab leaves at Koenigsegg
As a subsidiary of U.S. car giant GM, the Swedish car manufacturer Saab [had] no luck. In February, Saab had to file for bankruptcy. Now CEO Jan-Åke Jonsson [leads them] to independence – [with] the assistance of a small sports car maker, as well as American-Norwegian investors.
WELT ONLINE: Mr. Jonsson, you are pleased that Saab’s former parent General Motors is going on?
Jan-Åke Jonsson: We have long worked. Meanwhile, we are finally, after lengthy preparations also very much on the way [to being] an independent entity that can control themselves. With Koenigsegg Saab has a good partner [that] is found to be independently successful.
WELT ONLINE: Is this business safe or can [the sale] to the consortium to Koenigsegg still fail?
Jonsson: So far we have only signed a Memorandum of Understanding signed, but it is always the first step. There are still many details to be clarified. But until now there are no open questions, based on a failure of the talks could help.
WELT ONLINE: At the rehabilitation Saab GM has already tried unsuccessfully. How should a tiny sports car manufacturers such as the Koenigsegg succeed where what was once the world’s largest automotive group has failed?
Jonsson: It is not that the sports car manufacturer Koenigsegg Saab over, but a consortium around the Koenigsegg Holding, the Norwegian entrepreneur Bard Ekers, the U.S. investor, and Alan Bishop, the entrepreneur Augie Fabela. That is a separate organization. These people are interested in cars and have great industry experience. Together with our experience in the automotive industry may be a promising path.
WELT ONLINE: But an industrial partner would not have been better?
Jonsson: Obviously, you can choose different paths. Saab combined with a major manufacturer would have been a possibility. Saab into a smaller organization to develop, but it is the way that we ourselves have chosen. Saab sold 100,000 cars would be seen as part of a large group of five or six million cars per year sold only one brand of many and have fewer opportunities, to develop. Therefore, it is better to big in a small organization [than] to be considered small in a big group.
WELT ONLINE: So Saab is shrinking? This means less staff and fewer cars sold?
Jonsson: On the contrary. Saab will again grow. Development, production and other tasks are returned to Sweden zurückverlegt. This Saab is stronger than ever as an independent brand.
WELT ONLINE: And you’ll finally sell more cars?
Jonsson: In recent years, at least we have an average of 100,000 to 130,000 cars sold.
WELT ONLINE: [Which] in the opinion of experts [is] too little to survive.
Jonsson: But we are still there. And I think that Saab in the coming years this magnitude will reach. I do not think we in the future from 200,000 to 300,000 cars sold. In good times it will be a maximum of 150,000 vehicles.
WELT ONLINE: If you look at your sales figures, your predictions seem optimistic arg. Sales in the past year decreased by 60%
Jonsson: Since several factors play a role: One is the overall difficult situation of the automotive industry, the manufacturer must take all and thereby also us. It is our biggest volume model, the Saab 9-5, in twelve years on the market. The model is in years, although it is still sold quite well. And last but not least, the situation of our potential buyers insolvency insecure. 2009 is therefore a year of transition.
WELT ONLINE: And how do you want the paragraph to improve the current goal?
Jonsson: In the next 18 months, four new models come onto the market. These include the new Saab 9-5, the Saab 9-4X and the Saab 9-3X. The new vehicles will be decisive. To revert to the trust in our brand back.
WELT ONLINE: Koenigsegg wants Saab rather small and exclusive position. Who gives the Saab strategy before?
Jonsson, Saab is using his business partners agree, the existing business plan which we have developed with General Motors have continued. It is particularly important, [to get] new cars to market fast. Certainly, the business must also figures in a reasonable time to improve.
WELT ONLINE: “Better” is finally black? When is the prefix?
Jonsson: We want as quickly as possible with our cars to earn money. A positive cash flow, we expect according to our plans already in 2011, so that we at least from then on investments in new products from its own finance. When we return a net profit or operating black figures is another matter. However, I am hopeful that soon we can earn money because the income threshold at low sales figures can be achieved.
WELT ONLINE: Even if you earn money, press Saab debt. What are the really?
Jonsson: We currently have debt of around 920 million euros. This sum, however, we can greatly reduce, if our creditors as scheduled on 75 percent of their claims.
WELT ONLINE: How much money does Saab [need??] today, in order to cope with the crisis?
Jonsson: Overall, we need one billion U.S. dollars – and this means we have the prospect of getting. 600 million U.S. dollars we receive as a loan from the European Investment Bank, another 400 million U.S. dollars grant us General Motors. With this money we can achieve positive cash flow.
WELT ONLINE: Is Saab open for further cooperation partners?
Jonsson: If you are self-made, one needs during the transition period of very much help – as in this case Saab – from its previous parent company General Motors. Some of the supply of gearboxes, motors, and the provision of platforms. Medium and long term, however, I see the opportunity to collaborate with new partners. We can now cooperate with each. This is a great advantage.
WELT ONLINE: What advantage Koenigsegg Saab in the future?
Jonsson, Saab has long experience in the production and development of vehicles. Koenigsegg however has other qualities, such as alternative propulsion systems or the performance of vehicles. And from the right premium, the Koenigsegg with its 700,000-euro cars, and the joy of driving, the Koenigsegg radiates, Saab can certainly learn.
WELT ONLINE: In Germany, Saab Saab 900 with the cult for years. Then the image has been neglected. How do you want the brand to new life?
Jonsson: In Germany, Saab in the past not been consistent in building the dealer network. At the same time the mark was not consistently established and developed. Ultimately, prices will not fit on the equipment. In Britain, the United States or Sweden, on the other hand was much more stable on the Saab. From the mistakes we need to learn and they stop.
WELT ONLINE: What [other] mistakes have been made worldwide?
Jonsson: The Saab whole organization must be stabilized. It starts with the communication of the brand and its values, but also for the dealers. Moreover, our products are not fast enough on the market. It may not last for twelve years until the entry of a new Saab 9-5, in competition with the Audi A6, the BMW 5-or Volvo stands. Saab must be much faster and a wider product portfolio will receive.
WELT ONLINE: So?
Jonsson: The Saab 9-4X is our entry into the crossover segment. It will not stay. Saab has more niches with good gasoline and diesel four-wheel vehicles or occupy.
WELT ONLINE: Counting also new areas such as small cars?
Jonsson: We are missing a vehicle safely below the Saab 9-3. However, it is not yet decided how we are approaching this issue.
WELT ONLINE: What about alternative propulsion systems from?
Jonsson: Short term, our strategy on smaller engines with turbo-charge to bring meaningful. Saab has 30 years experience. However, we have hybrid cars or electric cars in the future planning. As Saab is able to deal with these issues, however, certainly depends also on the business development.
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{ 27 comments }
Fantastic interview and a real clarifier!
Ooph. That was a tough read. But I got some cool tidbits from it. Sounds like JAJ is not big on the 9-4x. “It will not stay.” Haha…
JAJ looks great in that convertible concept. Very confidence inspiring mostly.
a few things getting lost in translation.
The poll, “Why should Saab survive?” seems a bit sarcastic. I voted for “because without Saab, there would be no Moose test” because I disagree that ‘Darum’ translates to ‘Therefore’
Yeah, I’m not sure what’s going on with that bit about the 9-4x. All previous mentions have called it a very important vehicle for Saab, which I agree with.
Maybe we need a German speaker to accurately translate?
“it will not last” is a fair translation, but I think JAJ means the crossover segment is not a longterm focus for New Saab, which I agree with. especially if they aspire to maximum 150,000 per year and are determined to sell 100% assembled in Trollhattan. The fuel economy and diesel options are far better niches to focus on for 2011 and beyond.
been a long time since I dreamt in German…
until tomorrow.
Contextually I think it means “It will however not stay at that “. Meaning they will find further niches beyond just the 9-4X and the cross-over segment Babelfish translation says:
“Jonsson: …Saab must become here clearly faster and get a broader Produktportfolio.
WORLD ON-LINE ONE: That means?
Jonsson: The Saab 9-4X is our entrance in the Crossover segment. It will however not remain. Saab must occupy further niches with good gasoline and diesel engines or all wheeled vehicles.”
The NG9-5 spotted high altitude testing in Colorado,US. Motor Trend has pictures!
Great interview, JÅJ is a cool cat and I’m glad to see he also understands the importance of dealer networks.
The 9-4X thing is probably lots in translation. Contrary to what Karen believes, it is a very important vehicle for Saab.
Sounds like 9-4X will be build & sold thrue
GM for 3-5 years (one term), which sounds
smart. Saab can desighn & build crossover
in Sweden on existing platforms delta II and
epsilon II . Something like BMW & AUDI.
That way they can make maximum profit.
It was good to see JAJ surface. He has to be exhausted!
On the plus side are he is there, in command, saying the right things about Koenigsegg, and the organization needs stabilized.
The minus side includes more references to $1 billion in debt, no mention about government support, no mention (again) of planned capitalization, and no mention at all of anyone beside the characters we know – no secret investors.
Based on tonight’s posts, they are hunkered down.
Overall very encouraging and balanced. Wonderful to hear some ideas about the cars and business in general, not just the sale process.
There are still gaps to the outside observer as none indicates but hopefully these issues are in hand.
Small point & forgive my ignorance: does Alan Bishop = Mark Bishop?
Mark Alan Bishop.
the crossover slot is a transition away from full-size SUVs (I only understand the U.S. market), but there better be another transition vehicle with far more efficient mileage in
“Jonsson: In the next 18 months, four new models come onto the market. These include the new Saab 9-5, the Saab 9-4X and the Saab 9-3X. The new vehicles will be decisive. To revert to the trust in our brand back.”
Waitaminit ….. that’s only 3 models he listed.
Aaah, an auditor in our midst!
I think you can count the 9-5 as two models, Ken. Sedan and wagon. Wagon will come 12 months after sedan, most likely.
SAAB must be the only company that considers a wagon to be a separate model
The correct translation should be:
The 9-4x is our entrance into the Crossover Segment. But we will not stop there. Saab has to occupy further niches with good (might mean economical) petrol and diesel engines or AWD cars.
Good to hear from JAJ. Well done interview.
Thanks for the genuine trans, Till.
Nice wheels. Rock me, Amadeus.
“Darum” means something like “just because”.
I voted for “Because there is once again a manufacturer who builds no sedans”
Seems like they also got the hatchback thing
No, Audi as well considers there wagons as a different model to. I see Saab building something in line to the X6(Coupe/Crossover) as a future replacement to the 9-4 model. As a car in the vain of the X6 could ride on the Epsilon II platform and be produced in Trollhattan as well. Great read though, I always enjoy hearing from the Chief!
BMW & Audi are also usually guilty of announcing every iteration of a new model separately Makes sense from a marketing POV. Its not often that the new models are separated by 12 months – but luckily we’re all used to that with Saab.
Good reading.
Even Saab themselves have described the 9-4x as more of an ‘interim’ product. It is necessary until car based crossover versions of the new 9-5 and the next gen 9-3 make an appearance. Saab probably won’t make a huge profit on it either as it is OEM produced by GM, however it will keep up Saab’s presence in the US until it can revamp it’s range. I think it would be fairly safe to predict, that it will never be directly replaced.
@Till72: Danke! I thought ‘Darum’ was a metaphysical ‘because’ as in ‘because Saab must exsit’, but allowed myself to be sidetracked by ‘weil’. Come on, I thought the ‘no hatchback’ choice was the most sarcastic!
BTW, the German-Swiss media is now picking up highlights of JAJ at Die Welt, sole focus is on the potential in hybrid, electric, diesel…
(you have to news.google “Jonsson Saab” to pick these up as Saab Defense is hogging the news lately)
Very interesting…Jan-Ake says “In the next 18 months, four new models come onto the market. These include the new Saab 9-5, the Saab 9-4X and the Saab 9-3X.” So…..I wonder if there will be a 4th, or if the translator has gone wonky again? At any rate, better times are coming my friends!
Gunnar Dacke Vallarta (big fan of JAJ)writes: “Anybody remember the “Saab spirit”?” at: http://www.automotorsport.se/news/18770/dackevall-n%C3%A5gon-som-minns-saab-andan/
Automotorsport also has a sidebar where they invite readers to help “shape the Koenigsegg Saab: Saab’s future is a clean slate. You now have the chance to “help” Koenigsegg and Saab to provide the right products. Klicka här. Have your say – so we present results for Saab / Koenigsegg! ”
their debate on Fiat rebadging Dodge for EU has only 43 comments so far…
Four cars. Sure I know 9-3 wagon, Mexico wagon, 9-5 sedan, 9-5 wagon, but he said “these include…” Why didn’t he say “these are…” German is a very precise language and he precisely said the wrong thing. Besides it is more fun to imagine a cloak of secrecy surrounding something new. Or maybe the engineers trotting out some model that was almost done before GM rejected it. Maybe the 9-3 hatch, maybe the 9-3 Sonnett, maybe a plan for the old 9-5 platform.
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