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by Swade

A look at the state of play with Saab

November 23, 2009 in News

We’re on the cusp…… so here’s a little official and non-official info to start the week.
The deal
The word out of Sweden is that Koenigsegg Group and Saab are all ready to go. Everything is prepared for immediate startup once they get the nod. What we’re waiting for now is approval from Europe with regards to the ruling on state aid, and then the final EIB loan guarantees from the Swedish government. Every indication so far is that the government will give their support, so it’s just the EU we’re waiting for now.
A whisper has come through from elsewhere in Europe hinting at December 1 or 2 as a possible date for the EU approval. I have nothing to substantiate this, but Saab Cars North America using November 30 as a deadline for cancelled dealerships indicates that maybe my source has heard the same things they have.
Beijing Automotive
Part of that deal coming off is Beijing being included and one of the obstacles to that is GM being OK with their inclusion. Sure, GM may be dealing with Koenigsegg and not Beijing directly, but you can bet your bottom dollar they’d find a way to shimmy out of things if they felt too much tech was flowing somewhere they didn’t want it to go.
Indications from Sweden are that that side of the deal is all stitched up, too, with clear limitations as to what can be used by BAIC in the future.
The plans to remanufacture previous Saab models look like going ahead, with the outgoing Saab 9-5 and the pre-2006 Saab 9-3 (no, that’s not a typo) both being candidates for manufacture there. The level of modification or re-design that would take place is not known.
The dealerships
This has been the big issue of the last week in the US and will possibly continue to be prominent in the next week or two. Losing one third of your major market dealer population is no easy proposition and whilst a handful of those dealers will shrug it off, there are a number of very sad dealers and customers in various parts of the US right now.
It’s my understanding that appeals will be considered early this week, so we may hear some good news by the weekend.
It’s also come through to me that the total number of remaining outlets – given at 137 at this point – could comprise both dealerships as well as service-only outlets.
There was news in the Canadian market last week, too, which is encouraging. I’m expecting some news about the Australian situation in the next week or two. It’ll be very interesting to see what happens here in Oz, as the impression I get is that many Holden dealers that received Saab took it on because they were told to, not necessarily because they wanted to. It’s not the case everywhere, but let’s just say It’ll be interesting to see where Saabs are sold here in my little home city in six months from now. That goes for a few others, too.
The cars – 9-5
The date I keep hearing about in terms of widespread availability is April 2010. I’ve heard dribblings of information about earlier dates for some European markets, but April is the one that keeps popping up in relation to the US. We here in the antipodes will probably have a month or so longer than that to wait.
The cars – 9-3
Production will likely gear up as soon as the deal is done so that they can start pumping out 2010 models and get them to markets around the world. Dealers need these like they need air to breathe.
Several people have indicated that Saab are going to cease the incentive offers which might be likely for 2010 models onwards, but I have a hard time seeing them clear 2009 model 9-3s without big deals.
(btw……I think the whole no-incentives thing is good, but it makes me wonder about combined GM dealerships, which will likely be offering incentives on their Caddys, etc, on a rolling basis)
There’s even been unconfirmed indications that prices will go up, which I hope means that they’re going to jack up the equipment levels in the 9-3, in line with the premium segment they’re aspiring to. Hirsch leather interior as standard, anyone? I wish.
The cars – 9-4x
Whispers have come through on the wires that Saab’s diesel problems will likely mean a US-only launch of the 9-4x at first. The European market needs a diesel and whilst Saab are probably chasing one down as we speak, there’s no quick fix when it comes down to matching it with a pre-existing vehicle.
Will it premiere at a US auto show in the coming season? That’s the other big question.
The cars – a new Saab 9-3
Spies whisper that work is coming along nicely on the car, which has now progressed so far that it’s earned its own internal nickname. I won’t spill the beans on what it is, but interestingly, there’s a similarly named project that involves windfarms, which should make Maud happy.
——
You are now up to date.

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by Swade

Saab USA dealer update

November 23, 2009 in Saabology

UPDATE:
This will be the final full day I’ll allocate to this exercise.
The following dealerships are ones for which we either have tentative, or no information about. The list of dealers that we believe have been confirmed so far is here.
Please…. if one of the following dealerships is near to you, if you can call them or otherwise contact them and try to ascertain their status, it’d be much appreciated.
Thanks for all of your assistance so far.
Tentative:

  • MARVIN K BROWN SAAB – San Diego, CA
  • BOB MOORE CADILLAC, INC. – Oklahoma City, OK
  • PALM GAINESVILLE CADILLAC/SAAB – Gainseville, FL
  • Graham SAAB – Santa Barbara, CA
  • Red Noland SAAB – Colorado Springs, CO
  • Classic Saab – Mentor, OH – (now looking doubtful)

No confirmed information as yet:

  • BENTLEY SAAB – Huntsville, AL
  • KACHINA SAAB OF SCOTTSDALE – Scottsdale, AZ
  • DOWNTOWN SAAB – San Francisco, CA
  • PRESTIGE SAAB – Santa Rosa, CA
  • THREE WAY SAAB – Bakersfield, CA
  • LEGACY SAAB OF COLUMBUS – Columbus, GA
  • SAAB OF DES MOINES – Des Moines, IA
  • TARGET MOTORS INC. – Boise, ID
  • JACK SCHMITT CADILLAC-SAAB - O Fallon, IL
  • NAPLETON SAAB – Rockford, IL
  • EURO TECH SAAB – Wichita, KS
  • JOSEPH CADILLAC SAAB – Florence, KY
  • LONG CADILLAC – Southborough, MA
  • WOODWORTH SAAB – Andover, MA
  • BILL SNETHKAMPS LANSING DODGE SAAB – Lansing, MI
  • SUNTRUP WEST COUNTY SAAB – Manchester, MO
  • ROGERS-DABBS CHEVROLET HUMMER – Brandon, MS
  • Flow Saab of Winston Salem – Winston-Salem, NC
  • SID DILLON BUICK NISSAN HYUNDAI SAAB – Lincoln, NE
  • HUBER CADILLAC INC – Omaha, NE
  • POTAMKIN Saab – New York, NY
  • 86TH STREET CHEVROLET SAAB – Brooklyn, NY
  • BECK CHEVROLET SAAB – Yonkers, NY
  • MIDWESTERN AUTO GROUP – Dublin, OH
  • BOB MOORE OF NORMAN, LLC. – Norman, OK
  • DON THORNTON CADILLAC SAAB – Tulsa, OK
  • FAULKNER SAAB – Bethlehem, PA
  • SAAB OF READING – Reading, PA
  • RIDER SAAB – State College, PA
  • HURD SAAB – Johnston, RI
  • BARRY’S MIDDLETOWN SAAB – Middletown, RI
  • SITTON SAAB – Greenville, SC
  • GRAHAM AUTOMOTIVE – Sioux Falls, SD
  • Kelly Saab – Chattanooga, TN
  • ALLEYS SAAB – Kingsport, TN
  • LUKE FRUIA MOTORS – Brownsville, TX
  • SAAB OF RICHMOND – Richmond, VA
  • BROWN SAAB – Charlottesville, VA
  • VALLEY SAAB – Roanoake, VA
  • ZIMBRICK SAAB – Madison, WI
  • BERGSTROM SAAB – Appleton, WI
  • BROADWAY SAAB – Green Bay, WI
  • KOCOUREK SAAB – Wausau, WI
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by Swade

15% off T-Shirts – Euro shop only

November 23, 2009 in Saabology

RE-POSTED
Today is the 23rd, so it’s the last day for this discount!!
——
Ivan’s been hard at work whipping up some new T-shirt designs and for the next few days, you can benefit by getting 15% off the price!
The discount will remain in effect through November 23, so if your family members are a little stuck for ideas on what to get you for Christmas, maybe you should leave the computer open at the Saab Design Shop page and a Post-It note with the discount code nearby.
NOTE: At this point, I believe it’s only our European shop that’s offering this discount. Other shoppers might like to try the discount code at the US shop to see if it works, but I don’t think it will work there.
The discount code is NOVEMBERSALE. Enter that code when you check out and the 15% discount will be applied. The discount is applicable to all items in the shop, but will most likely not apply to shipping.
Link to: European standard shop (choose from pre-formatted items)
Link To: European custom shop (pick your garment and design)
——
Some of the new designs include the Saab 9-3x, the new Saab 9-5, and the Saab 9-4x:
Saab T-shirt
Saab T-shirt
Saab T-shirt
Other new designs include an old-skool Turbo badge and the fantastic Viggen emblem, both in silhouette and in full color:
Saab T-shirt
Saab T-shirt
Saab T-shirt
Finally, we also have our full range of old-school style Saab outlines that cover a range of favourite Saab models, old and new.
Saab T-shirt
——
If you want your shirts simple (and a little bit cheaper) then head for the Euro pre-formatted shop where we’ve selected a number of popular design and garment combinations for you.
If you want full control over your shirt, head to the Euro DIY custom shop, where you have full control over the garment and design combination, as well as the size, color and positioning of the design you choose. You can even add multiple designs and custom text!
Remember – the 15% discount ends November 23rd and the coupon code to enter is NOVEMBERSALE when you check out.

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by Swade

Kelly Saab – cut PA dealer – rallies support

November 23, 2009 in Saabology

Kelly Cadillac Saab are located in Lancaster County, central Pennsylvania, and they were one of the unfortunate ones who received a letter saying that their dealership would not be one of the retained outlets in the future.
Kelly aren’t taking the notice lying down, though. They have a love for the Saab brand and feel a obligation to their customers, so they’ve started a website – saveoursaabs.com – in order to petition Koenigsegg Group into reconsidering this decision.

……we were somewhat dismayed last week when we were notified that Koenigsegg Automotive has chosen to close our Saab dealership.
Since more than 8,000 Saabs have come through the doors at Kelly – with over 1,500 current and active Saab customers – we believe that Kelly Saab plays an integral role in the future of Saab here in the United States. The Kelly family has been in the automotive industry for over three decades, and owns 12 franchises in 6 locations along the eastern seaboard. We have deep ties to our customers and community in all these locations.
To that end, we have respectfully contacted Koenigsegg Automotive to take a closer look at Kelly Cadillac Saab in order to realize the negative impact that closing this particular location could have on their chances for succcess.
So we’d like you, the customers of our Saab dealership, to let Mr. von Koenigsegg know what you think of our dealership, of your Saab automobile and the importance of keeping a Saab dealership within Lancaster County.

Please click here to read the messages of support and maybe even leave one of your own.
There are 150+ comments there already, which is a very good start.
——
Earlier this year there were a lot of people in the car industry who would have left Saab for dead. It seems to me that if you’ve got someone this committed to supporting Saab and keeping them, you ought to keep that person on-side.
It’s my understanding that appeals from dealerships that were cut have been coming into the offices of Saab Cars North America and that those appeals will be considered this week.
I hope some good judgement is excercised here, and that the good people in some of these dedicated Saab dealerships are retained. It matters.

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by Swade

Sunday night snippets – Alive edition

November 22, 2009 in Saabology

Pearl Jam are touring Australia at the moment, and whilst I won’t be seeing them (bummer) it does remind me of one of my favourite road trips of all time, during which we had a cassette tape of TEN on auto-reverse for an entire week.
Remember when auto-reverse was the biggest thing in audio? I digress.
This whole dealer upheaval, price upheaval and model range upheaval has me in a spin. Will the car company that I’ve grown to appreciate, even love, look anything like it does now in three or four years from now? Will it have the same qualities that drew me to it in the first place? Will there be a Saab motor car that I can not only appreciate, but genuinely aspire to?
I’m still alive when it comes to Saab. I fear that the company is turning its back on its own history, but remain hopeful.
The next 9-3 has a big burden to bear, doesn’t it?
Sorry if that was all a little too dramatic, but sometimes you just have to write what you think.
——
Per Eklund, standing on top of his car having just driven it to victory at the Solberg Extreme Motor Show. From Rallycross.com
Eklund09.jpg
I’m not sure what was involved in this event (and I think it was mostly for laughs and a good show), but Per beat some good competition to win the best-of-three final round.

In the ‘Real Deal’ class Per Eklund (SAAB 9-3) beat 2009 FIA European Rallycross Champion Sverre Isachsen (Ford Focus ST) in the final after both drivers won their semi-final from respectively Morten Bermingrud (Citroën C4) and Camilla Antonsen (Ford Focus).

Per also hired out a car to another driver, who drive the Saab 9-3 to victory against Marcus Gronholm to take the ‘Golden League’ event.
Hat tip to Mike Jager, as usual.
——
So what goes into renovating a kiss-ass dealership in the US?
Try a gymnasium, masseuse, manicurist and every other amenity under the sun.
Read and enjoy this article from the Chicago Tribune on a new Cadillac/Toyota/Chevy/Scion dealership. This takes some money.
——
I must say…..
In considering my thoughts as posted at the top of this article, I was compelled to consider the appreciation I have for my own modern Saab.
Yes, I prefer the older stuff, but I’ve got to say that my more modern Saab really is one heck of a nicely sorted machine now. I’d even go so far as to say i’m more attached to it than what I was to my Viggen. It doesn’t look anywhere near as good, but it does drive every bit as good.
They really made something great out of that car. The 900/9-3 was my least preferred Saab when I first saw it back in the 1990s. If only I’d known then what I know now.
Bottom line: in spite of my fatalistic outlook, this company’s clearly capable of some brilliant, brilliant things.
Have a good Sunday.

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by Swade

EnG Snippets – Tax Abatement Style

November 22, 2009 in News, Troll Stuff

Good evening all Saabisti! A few ruminations from my head to yours.
As expected, Saab Cars North America was approved for a tax abatement from the city of Royal Oak, Michigan to locate their new headquarters in an existing facility in that city.
Where is Royal Oak? It’s about 15 miles north northwest from downtown Detroit.
Here is the specific location to which Saab Cars North America plans to move:

View Larger Map
As reported earlier, Saab Cars North America is also expecting incentives from the Michigan Economic Growth Authority (MEGA), a state-level agency, and will not commit to the location until that agreement is reached. Apparently the local tax abatement, which is only about US$6,000 per year for the next four years, is necessary for the city and Saab to apply for funds from MEGA totaling about US$1.2 million.
You would have read this article about five hours ago if you were following me on Twitter.
————-
A funny thing happened to me at the hardware store….
Today I got my hands a little dirty and replaced the worn tie rods on my 1999 Saab 9-5. It’s not a particularly difficult job, and I’d gotten the tie rods about a month ago via mail, so today was the day.
I got the car up on the jack stands, wheels off and started to get the old tie rods off. Judging from the size of the nut, I figured that it was a 17 mm. I got my trusty socket set out and turned back to my work only to find that the nut was larger than 17 mm. So, naturally, I tried the next larger size from my socket set — a 19 mm socket. It was too big. Now, this is where things get a little dicey for us in the US: Were these replaced at some point with parts that used English measures? Quickly doing the math in my head, I confirmed that the 19mm is virtually equivalent to three-quarter inch, which leaves 11/16-inch was the only reasonable choice. Knowing that the 11/16-inch iss very close in size to the 17 mm, I didn’t think that was right, either. Figuring that it was worth a shot, I tried and failed with that one, too.
It was an 18 mm. How annoying. Virtually no consumer-grade metric wrench sets available in the United States include an 18 mm size.
I trekked down to my local hardware store who I trust to have this kind of stuff. They carry the details. I’m thankful for that. This is the kind of place where they still have six or eight knowledgeable staff around even on the weekends, so I was not surprised to see someone approach me as I perused the sockets. Not even looking up from my task, I was surprised at what I heard upon approach. I heard a voice saying, in perfect deadpan, “I’m not at all surprised to see you here looking the metric sockets.” Looking up, I recognized a semi-famous friend of mine there getting a little grass seed and a box of fireplace matches.
You see, this fellow has a new-generation Saab 900 convertible that has a balky top. At this point he’s got about $2,000 invested in the top alone, and he’s had a couple of odd ball electrical issues with the car. He loves it, but he has a defeated sense of humor about the quirks of working on his Saab. He and I have compared notes on numerous occasions. Because I’ve been primarily a C900 owner, I’ve not experienced some of the pain that he has suffered, and I often find myself defending Saab while he rants a little about the weird things that he’s encountered. Today, I had to admit that he was right. Right as rain. I was at the hardware store, buying a tool that I would likely use once and never again just to change the tie rods on the 9-5.
That’s right, I’ll use the 18mm socket just once because the OEM replacements came with 19 mm nuts on them. Really.
That’s quirky. I know that Swade hates that term, but it’s reality sometimes.
——————–
Your moment of zen.

sm lime yellow 9-3 convertible beach sunset 2009.jpg

Courtesy of Flickr.

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by Swade

Dimini.ch on Flickr

November 21, 2009 in Saabology

I posted a few weeks ago about Dimini.ch, a new website that’s focused primarily on selling scale model Saab cars.
I’ve just noticed they’ve got an account with photos of their models on Flickr, so you can check out all their excellent work in one place prior to figuring your way around the website. It’s a great way to see it all at once.
Their Flickr account crossed my radar as they’ve just added two new models to the range and they’re quite retro-grooooooovy.
The early model Saab 9000:
Saab9000model.jpg
And the too-cool-for-school Saab 90!
Saab90model.jpg
Bookmark it, baby!!!

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by Swade

Mike Colleran speaks! …..and Saab USA dealer network mapped

November 21, 2009 in Saabology

The Chicago Tribune has an article today on the culling of two-thirds of the Chicago area dealer network.

Only three Chicago-area dealers were selected, according to Saab officials. The three survivors are Downers Grove Saab, Saab Exchange in Lake Bluff and Patrick Saab in Schaumburg.

Although none would confirm termination, local dealers ostensibly left by the wayside, unless they successfully appeal, include Motor Werks in Barrington, Gartner Saab in Aurora, Flikkema Saab in Lansing, Rizza Saab in Tinley Park and Perillo Saab, the sole Chicago location.

There’s also a dealership in what must be northern Indiana that’s been cancelled – Schepel Saab in Merrillville.

They managed to get a few quotes from Mike Colleran, head of Saab Cars North America, about the process.

“It’s not like we’re really eliminating them,” said Mike Colleran, chief operating officer of Saab Cars North America. “We’re just selecting ones that make sense for the new business plan for Saab.”

Colleran said that while the decision was difficult, dealership longevity and stand-alone allegiance to the brand did not enter into the equation. In addition to sales, parts and service performance, the smaller network reflects a marketing strategy aimed at recapturing Saab’s unconventional cachet, something that dissipated during the GM years.

“It is our intent to focus more on premium positioning in the luxury segment, and to focus less on discounts and volume,” Colleran said.

In another year, I would have done a whole post lampooning that first sentence, but I’m trying to turn over a new leaf here :-)

Taking a cue from the second paragraph there, it remains this author’s position that “dealership longevity and stand-alone allegiance to the brand” should have played a bit more into the equation. Notably, there are mentions in the article of an appeal and review process. Here’s hoping that some of those longstanding members of the Saab family can get a fair hearing.

Saab are obviously looking to the kiss-ass method to lure in some bigger spenders, but good old-fashioned personal service (where the customer is treated as a friend rather than a sugar daddy) also has its place.

Heaven help us if we and the dealers who sell to us turn into the stereotypical BMW crowd (present company excepted, PT and Richo, of course.)

——

To the second part of that headline……..

OK, it’s not the whole dealer network as it will be under Koenigsegg’s ownership, but it’s everything we’ve got so far, which is around 105 dealers at this point. 30 or so to go.

The map is available here or there is also a page set up here at Saabs United, linked in the left sidebar.

Here’s a few screencaps. First, the map in it’s entirety.

SaabDealerMap.jpg

As you can see there’s still a definite concentration of dealerships in the top left right corner (d’oh!). Here’s a closer look.

SaabDealersNEUS.jpg

I’ll maintain the map page as the central record now and updates will be posted as they come to hand.

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by Swade

New SCNA website – featuring 2010 SOC

November 21, 2009 in Saabology

Before SCNA stood for Saab Cars of North America, it was (and still is) the acronym for the Saab Club of North America.
The SCNA has a new-look website online and it’s looking pretty good. Those of you who haven’t checked it out yet might want to do so here.
SCNAwebsite.jpg

They’ve got a link there to some groovy Saab wallpapers, put together by a guy named Roy Chui. Great work.
I love Saab wallpapers :-)
SAAB-CabriB-4.jpg

Most importantly, they’ve also got some preliminary information on the 2010 Saab Owners Convention, which will be held in Aurora, Ohio from July 22-25th, 2010.
SOC2010logo.png
This will be the first post-GM convention and I’m sure the new Saab 9-5 will play a prominent role.
Early details are available at the Saab Convention website.
-

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by Swade

Koenigsegg going cheap….

November 20, 2009 in Troll Stuff

Some time ago, back in the Trollhattan Saab days, we did a demographic survey on the site including various questions that people were asked to answer anonymously.
One of those questions was about income, and a few people responded that they were filthy freaking rich and could pretty much afford whatever the heck they wanted.
Now’s your chance to pick up Saab’s next big brother, maybe at a bargain basement price, too (you didn’t get that way by paying top dollar, did you?).
COYS Auctions are having a “True Great” auction and one of the cars on the block is a 2005 Koenigsegg CCR, which is estimated to go for £175,000-250,000. Bargain!
KseggCOYS1.jpg
KseggCOYS2.jpg
Ksegg3COYS.jpg
I need someone I ‘know’ to buy one of these. How else do you get a ride in one?
Hat tip to Pistonheads

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by Swade

EU edging closer to a decision on Saab loan

November 20, 2009 in News

TTELA have a report in today’s paper with several news points with regard to the European Union’s decision on Swedish aid to Saab in the form of loan guarantees.
Those blesses with Swedish language skills, click here.
Here are the dot points for the rest of you, via Google trans and my own limited skills of comprehension.

  • Swedish government and KPMG provided a report earlier this week, which should go a long way to clearing up Saab’s financial status over the last 18 months.
  • Bottom line: Saab weren’t insolvent during this period, which was the main point of concern.
  • Swedish Industry Ministry say they’ve done all they can to expedite the matter and assist Saab in securing the loan.
  • Note: EIB have already approved the loan, but EU decision is necessary.
  • Decision could take up to two months, but should be much quicker as Industry Ministry has assisted to a great extent with information (thankyou, Industry Ministry)
  • EIB loan is for 400mil Euros and Saab/Koenigsegg will contribute 578mil Euros.
  • Loan is to be paid to Saab in nine instalments.

Another fantastic piece of work by TTELA’s man on the ground, Magnus Nordberg.

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by Swade

Saab GB Autumn sale this weekend

November 20, 2009 in Saabology

If you’re in the UK and in the market for an excellent bit of value, then you might want to check out Saab’s Autumn sale. It’s on this weekend, the 20th to the 23rd of November.
SaabGBAutumn.jpg
The big attraction at this autumn sale is the chance to save £5,900 on a new Saab 9-5 Turbo Edition Estate 2.3T. The big estate is going for just £19,995. That’s around $40grand Australian and for that you get a fully loaded 9-3 wagon including the stonking 260hp engine.
That’s actually quite unbelievable.
There’s also a number of approved, used Saab 9-3 TiD’s available in Vector trim for £14,495.
Here’s where to click.

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by Swade

Saab 96 retro rally project wants your input

November 20, 2009 in Saabology

We’ve seen some good retro-Saab ideas that were pretty much just photoshop ideas.
This is something different. This is something that someone really plans to build using a Saab 9-3 convertible as a base.
96revivalimage.jpg
The project is being publicised and promoted by our mate Etienne from Belgium. Here’s the thrust of it:

It’s a modern reinterpretation of the 1960′s Saab 96 which will be built on a convertible 9-3′s platform. At this moment the project is only a sketch but this English company mean to develop a drivable prototype with 300hp that will be shown at the 2011 Goodwood festival of speed, to celebrate the jubilee of Erik Carlsson’s second victory in the 1961 RAC rally with the 96 number 1.

If the project goes ahead, it will be built by Snetterton Memories Ltd, and English company who specialise in designing and building vehicles inspired by prestigious popular ‘old-time cars’.
THEY WANT YOUR FEEDBACK!!
A website has been setup for this project and here’s the last paragraph:

The project is absolutely a private matter between Snetterton Memories Ltd and its designer Vincent Maréchal, and they hope to see this project become reality. You can help by showing your interest here. Your valued comments on this blog could very well help to see this project become reality.

So please head on over to the website and provide your thoughts.
When you post your comment, you might think it’s been rejected as the comment form returns with your details present but the comment box blank. Scroll up and check first before re-entering them.

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by Swade

A bit of background on Saab dealership selections

November 20, 2009 in Saabology

UPDATE – A bit more background, added below
——
As you might know, I’m pretty concerned about some of the dealership cuts that Saab have announced in the United States.
I can’t confirm this, but my best educated guess is that this decision would have been made by Saab, not by GM, and it would have been made based on advice by the people in charge at Saab Cars North America, the group who will lead Saab’s distribution and promotion in the US once the deal to transfer Saab over to Koenigsegg Group is finalised.
Saab Cars North America aren’t releasing a list of surviving dealerships, nor is there any concrete information about dealers losing their sales rights but possibly keeping hold of their ability to provide warranty service.
I’ve been trying to build a list of retained dealerships and we’re at just over 100 now, for which I thank all those who’ve made calls and sent emails.
I’ve been doing a little bit of homework on this in the background, trying to understand the rationale behind the decisions that were made. Some of these cuts run pretty deep, in that some old dealerships with strong historical links to Saab have been terminated. Some of these dealerships have small sales bases, but very happy customers who buy again and again from them.
Here’s what I’ve discovered in trying to understand some of these cuts.
A strong dealership base is the #1 priority.
Saab need strong, profitable dealers to take them forward into the future. As you know, there are some regions in the US that have much greater exposure to Saab than others. There’s very few Saab dealers on the western seaboard once you head north of San Francisco, but cross to the other side of the country and you could throw a blanket over 7 or 8 dealerships in eastern Massachusetts.
My count has it at 13 in Pennsylvania, 9 in Ohio, 16 in New York with another 7 over the river in New Jersey, either 11 or 12 in Mass, 5 in Maine and 9 in Connecticut (conditional upon me getting the count right from SaabUSA’s dealer locater). Add to these the dealerships in Rhode Island, New Hampshire, Vermont, Delaware and Maryland and things have got quite populous in that northeastern corner of the country.
Saab’s sales will be under pressure in the coming few years and it’s understandable that there probably won’t be enough to go around for all these dealerships. It’s considered that Saab will benefit from stronger, healthier dealerships and that means reducing the number of them in this densely populated area.
That’s the rationale for the reduction. What I don’t understand so well is the rationale for some of the selections.
The cost to SCNA is minimal, at best.
Having chatted with a few in the business over the last few days, I can tell you there is minimal, if any cost to Saab Cars North America in having a dealership in a certain location.
Dealers do their own local advertising, pay for their staff to be trained up, pay for their facilities, have to finance their floor plan, etc.
I don’t know what a national marketing body’s main expenses are. Staff facilities, marketing plans, wages? There might be an additional network to book an ad for, a few extra promotional items to have printed (though there’s usually overruns on those anyway) but the incremental cost of having 150 dealerships instead of 137 dealerships is minimal, if anything at all.
And all that makes me wonder all over again, why some of these long-term Saab dealerships were cut.
Yes, some were in crowded areas and consequently, would be prime candidates. That goes double if their facilities haven’t been updated in some time (and I don’t know which ones were and which ones weren’t).
But some of these cut dealerships had great reputations, great relationships with customers, great histories that could be leveraged – all without the density problems that might have faced others.
We’ve already talked about Continental Motors in California. What about Meyer Garage, in Iowa?
I’d urge you to go and read Eggs’ account of the recent open house at Meyer Garage. You can’t buy positivity like this, even if you tried. It’s not a fancy dealership and it’s definitely a small community, but isn’t that a micro-study of Saab itself?
And if it costs next to nothing for Saab Cars North America to have a dealership on their books, then why cut somewhere like Meyer Garage?
Sorry, I got on my soapbox there for a moment…..
This is more about the future, than it is about history
I guess this would be Koenigsegg/Saab’s argument to me in reply of my rantings, above. I’ve had another conversation with someone involved, and here are some thoughts that they shared.
Koenigsegg/Saab have plans for certain types of cars at certain price points. Where they can sell these cars in the future and the potential for sale growth is more important than where they’ve sold cars in the past. Remember, this is from Saab’s perspective as a manufacturer. They don’t make the money from service that a dealer does. They make money from manufacturing and then selling the vehicles themselves.
They want sales growth more than service maintenance. Owners will get their cars serviced somewhere – they have to – but new owners may not make the journey to buy if the dealership isn’t nearby. Therefore, if you’re going to cut or keep someone, it makes some sense to keep those with the best growth potential, even if it’s at the expense of an established, happy but non-growth market (personally, I still subscribe to my theory of keeping oldies if they’re no threat to new ones – Meyer Saab and Continental being obvious cases in point – SW).
The strength and potential of dealers is imperative. Dealer service (read as: the ability to kiss the customer’s ass) sells cars and the better off the dealership, the better personal service they should be able to offer. Saab are looking for car sales more than after-sales, which the dealer will hopefully maintain at a good level for their own benefit.
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Back to me again…..
I don’t know the formula used for deciding the number of dealerships, nor the rationale for which ones would be cut in preference to others.
The need to pare back crowded areas makes sense, and I understand the attraction of shiny new buildings. What I don’t get is the need to kill off solid, historical connections where they don’t crowd others.
Saab dealers need a good area to cover, they need products to sell (“just give me anything with wheels on it” is one quote) and they need leasing facilities to offer.
Oh, and completion of the sale to Koenigsegg, too.
There’s a lot yet to happen and a lot at stake. I just hope Mike Colleran’s got his selections right and I also hope he’s open minded to the appeals that some of these cut dealerships will make.

Avatar of Swade

by Swade

Friday Snippets – the sky is falling!!!! edition

November 20, 2009 in Saabology

If there’s a sub-story in the Koenigsegg sale that could prove to be a stone in their shoe, it’s that of the employee from BAIC who’s accused of stealing trade secrets from Ford a few years ago and is currently bing held in Michigan.
The Detroit News has some more information about it, which they published today as Xiang Dong Yu was arraigned in the US District Court.

Yu was arrested last month at Chicago’s O’Hare International Airport when he returned from China. The government says a laptop computer he was carrying contained thousands of pages of proprietary Ford documents and a large number of confidential documents belonging to another company not named today in court…..
….According to a federal indictment, Yu had access to “sensitive Ford design documents.” He is alleged to have made electronic copies of “system design specification documents” prior to leaving his job in Dearborn in 2007. The documents contained proprietary information about Ford’s engine and transmission mounting subsystems, electrical distribution systems, power supplies, electrical subsystems and generic body modules.
Prosecutors allege Yu started taking documents to the industrial city of Shenzhen, China, as early as 2005. Officials say he was hired in 2007 by PCE Industry Inc., a California-based subsidiary of a Taiwanese electronics company, Foxconn.
The government contends Yu tried to use the documents in 2008 to land a job with another Chinese company, Shanghai Automotive Industry Corp. He eventually was hired by Chinese automaker Beijing Automotive Corp.

That last paragraph is the one that makes me nervous. So this guy apparently stole the stuff on his own, then tried to land a job using the documents as bait. It didn’t work at SAIC, but eventually landed a job at Beijing Automotive.
There’s no allegation there that he got the job at BAIC because of the stolen documents, but the insinuation is damning enough.
I hope this isn’t something that will scuttle things as far as KG’s purchase of Saab is concerned.
For those who don’t know, Beijing Automotive has offered to take what could be up to a 20% stake in Koenigsegg Group once the deal is finalised and this potential infusion of funding is pretty important to the whole Saab sale.
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I give that whole trade secrets story a heck of a lot more credit than I give this story, from the World Socialist Website.
I received a few links in my email to this one overnight. Upon reading it, all I can say is it reads to me like a bunch of extreme leftwing spin on news that we’ve already heard.
The sky is not falling.
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Robert Farago has left The Truth About Cars and my, hasn’t it changed?
Far less frequent are the stories with content like “Saab is dead. Everything’s dead. Everyone’s a liar – and dead!”
The other day they even had a story about GM using some creative accounting techniques to boost Saab’s losses over the years. DI.se had a story about Saab costing GM around $5,000 for each car that it sold and yet, KPMG and the Swedish government found that Saab were in a sound condition in a study the conducted for the EU. The reasoning – Saab were healthy but the losses (if they ever existed) were paper losses most likely attributable to the artists in GM’s accounting division.
Today there’s even a story from an author who’s also a car dealer, trying to make sure a classic Saab 900 convertible he got as a trade goes to a good home.
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Finally, the biggest story in Sweden in the last 36 hours – the Swedish referee who booted Ireland out of The World Cup by missing a handball foul that the player concerned even admitted to.
Oh my.

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