WooDz vents on Opel and the Saab 9-4x

| 28 Comments

WooDz is one of our long-termers from the days of Trollhattan Saab. He's got a bit of a unique perspective on things given that he lives in Germany but it is an expat Brit. Oh, and he used to sell Saabs for a living, too, so he's pretty familiar with markets and customers, etc.

He's sent me a little ventitorial and I figured it'd be good to get out in the open.

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There's a few things that have been going through my mind lately and it's now reached the point where I need to vent a little.

First up is OPEL and the recent news that Nick Reilly is convinced that GME OPEL can return to profit if they kill off 20% of their production and 10% of their workforce (not meaning they'll literally kill 10% of their workers, but.....you know....).

I can only guess that means 95% blue collar, hard grafting people and 5% white collar managers on 4 times the blue collar wage, who for the past year have endured a few bouts of RSI, churning out bar graphs and pie charts in true GM fashion, quite possibly showing the forecasted levels of 'Pi**ed-offedness' felt by Magna and the German government for each month they dragged their heels on the sale of said German company.

The Great Plan also consists of injecting 11 billion Euro and bringing 9 new models to market. Naturally this 11 billion isn't just for new models, it will also be used to improve OPEL's facilities, meaning the canteen will now offer latte and cappuccino as well as regular filtered coffee. Maybe that's where the nearly 3 billion Euros will go from requested government aid.

What confuses me, and maybe some of you would like to open my eyes to something I'm missing here, is why should the German government give 2.7 billion Euros in aid, when the result still leaves over 2,000 people in search of work? In January, 340,000 people registered for state benefits in Germany, pushing the total of unemployed, in one form or another, to over 10 million for this month.

How about OPEL cutting its production by 20%, cut off the dead wood in redundancy packages, stop 'crying wolf' to the EU and invest 8 billion Euros instead?

Even 8 billion Euros is an obscene amount of money. This is a company who couldn't find 500 million Euros to invest in a premium brand like SAAB each year. OPEL has 9 products and is looking to increase that by a further 3 new products. SAAB, on the other hand, should have at least 5 products. A Sub-Compact, A Compact, Mid-size Sedan/Estate, Over-sized Sedan/Estate and an SUV/MPV. If you want to give them names be my guest.

If GM had invested 4 billion Euros into SAAB I'm 100% convinced that SAAB's product wouldn't be in so much need of attention. This 11 billion Euros is just another reason why I am so happy to see SAAB finally setting off on another course and the quicker they can stop using GM components the better. I'd much rather see SAAB use Peugeot/Citroen as a supplier than have GM receive one more Euro of their money ........which brings me to the 9-4x.

I like the 9-4x, it fills a massive void in SAAB's product line-up. If you don't like SUVs then it's not going to be for you. However, please don't be all elitist and start spitting fire at the thought of a SAAB off-roader. If Porsche can have one, then any manufacturer can have one.

However, why on earth are we waiting until 2011 for this vehicle?

The concept debuted 2 years ago. It's production ready. What excuse does SAAB have not to launch the 9-4X sooner? Production costs? Shipping Costs? This is the beauty of the 9-4x. GM build it, SAAB slap on their margin, customer pays for it.

I know what you're think though. Marketing; we need flashy TV adverts. No we don't! TV is dead and expensive. Stick to print and online marketing.

So SAAB what are you waiting for? Place an order for 100 Units per month to get started and watch your demand rise to over a 1,000 units a month by the end of the year, without the need to discount them. Keep at least a 6 month waiting list as orders rise and see how well the residuals hold on the used car market. I'm not teaching these boys anything new, just reminding them that flooding the market with unsold cars is very bad for business.

With SAAB producing just 100 units per day they are in a very advantageous position over presumably all other manufacturers who are looking at cutting production and down-sizing. SAAB doesn't need to just right-size their vehicles - they can right-size their production too.

My hopes for SAAB are high but maybe, like many of you, I'm still getting over the fiasco of the last 15 months. I'm tired of all the what if's. I want to see some action, new products and I want to see them soon; not in summer and not in 2011.

Now's the time to capitalise on all the press coverage and launch a new model every 6 months, starting with the 9-5 sedan in March. If it can't be ordered, it can't be sold. If it can't be sold it's not earning you money.

Just remember you own advertising "The Time is Now!"



28 Comments

I agree. If the new Saab models were available, I would be looking at them.


Woodz, you're dead on as per usual, the only thing with the 9-4x that I can think of is the delays in the sale caused the delay of crucial tests, notably crash etc. Those preproduction units got out the door only a month ago, so hopefully it's rushing to market sooner than we think. This is only conjecture of course, but it's not like they can just sell it without passing through all the regulatory hoops. Having said that, I agree with you that as soon as those hurdles are clear they need to push it to dealers. That's why I think they NEED (using all caps) to show the production version the first chance they get at a major US autoshow (target market). I'm guessing that's going to be NY now that Chicago is out of the running. Let's hope for the best.


I generally agree, but I think the market is well-stocked with vehicles in the 9-4x category. Perhaps their new owner has a few things in mind to better differenctiate the


...differentiate the Saab offering.


Perhaps GM had three reasons for the delay in launching the 9-4x. Call them Equinox, Traverse and SRX. Wholeheartedly agree on the NG9-5, needs to launch at something other than a car show.


Maybe GM wants to get it's lion's share of sales with the Caddy version before any sales competition with the 9-4. I agree with you 100%. In many instances, Saab has been behind the curve on getting product quick to market, for one reason or another. I never liked that, and was quite disappointed to see this time line earlier.


I never understood the hate for the 9-4x in Saab's lineup.

I'm sure that there are Saab buyers who at some point would like an SUV, but not give up Saab style and qualities. The flip side is also though who are attracted to SUV's and wind up giving the 9-4x a look and buy that or maybe check out other Saab models.


The only complaint I have with the 9-4x is there is no turbo diesel. In fact I'd love a powerful diesel for all vehicles in the lineup.


Hate is a strong word. From a business perspective there has to be some disappointment that it's not going to be produced in Trollhattan and sold at higher margins. Brand enthusiasts might also find drivetrain options lacking.

However, for the first time buyer looking to move up into a near-luxury suv, it might be just the ticket.


Thanks Woodz, great reading.


WooDz, you're so right about Opel. After getting maximum credit from the US government GM subsidiary Opel goes collecting money from governments in Europe... I remember someone at GM saying "We can save Opel from our own, unlimited cash ressources." So why don't they do it? Because unemployment rates in Germany somehow force government to help to avoid further unemployment... Clever!

The 9-4x... Yes, Saab needs it in its lineup. It's not the ultimate Saab SUV carring the ultimate Saab heritage. But it's not time to make a wish now, I am confident that Saab engineers did theit best to put Saabiness into it.
So now we have a vehicle that may attract many customers in the SUV segment. An as others already said it may attract many customers to take a look at Saabs lineup.

As to my dealer: they also sell Volvo and when the masses enter to buy the XC60 they surely will take a look at the 9-4x. If it only was in the showrooms now.


Hmm. "if Porsche can, then can saab"

NO they can not.

Difference is the Cayenne IS a Porche !
Made by Porche on their own plant.

9-4 is nothing but a rebadged GM product tweaked with a littele "sabiness".

If ever realeased it will prove to be a failure for Saab walking further up "the rebadging road" and will probably even not enhance the cashflow significant.
-But it surely WILL harm the true Saab spirit, staying in business only as a Customizing Company, and affect the conifdence in future models from Trollhättan.

BTW
I've tried out a Panamera, -thats a hatch I wished Saab had made, instead of that La Crosse
/ 9-5.
I really hope Spyker can/will change that.


There is an article in today's online edition of Manager Magazin (in German) about the Cadillac SRX:
http://www.manager-magazin.de/life/auto/0,2828,673174,00.html

Quite interesting, what Wolfgang Schubert, CEO of Cadillac Europe, has to say about the chances of Cadillac in Europe (Cadillac sold 2009 in Europe only about 3.200 cars!):

"Anyway Schubert has to wonder, if he can earn money in such small numbers at all and if the commitment in Europe is useful. The manager has no doubts. His argument: companies like the British car manufacturer Morgan finally show, that Cadillac could be profitable with small quantities."


Made me smile....


Times are different, too. I doubt that Cayenne would be such a hit if it was introduced in 2010.

Ok, the 9-4X is probably ready to go any already now, so one can just as well sell it then.

And its a SUV, no one can fool me with other clever names. "Crossover Utility Vehicle" ....? Come on, gimme a break... *eyes rolling*



I agree 100%. The concept for Opel is a non-concept. It shows no convincing line as to how GM wants to strengthen the brand, improve products and reach increased sales. It only shows up with the same old story, cutting-off production, quitting workers etc. No vision about the brand, the products, the customers etc.

And for Saab, the time is now. I am as convinced as you are that less dependence on GM can turn out very positive for Saab - the GM concept for Opel again confirms this in a way - , but that this has to be fought for actively. As a first step, I want to see Saab break with the tradition under GM ownership of lagging behind in regard to getting new products out on the market. Unfortunately, the time line set up for the Saab business plan tells another story. I know that there are sveral steps which have to be done before a new car can be put into production and sold on the market.

However, just as you mentioned, there might also be other reasons related to ideas about a proper marketing of the new models, that the parallel launch of too many new models would be problematic. I do not share such concerns. Rather, I would speed up the launch of all the new products in the pipeline as much as possible. I cannot see the reason why the launch of the 9-4x is planned for 2011. And I cannot see the reason why the 9-5 SC is planned to enter the market so late. The sooner Saab comes out with the new models the sooner will sales and production figures improve.


I don't get this Saab slapping on component sharing. I agree that GM hasn't done it in a proper way, but there was nothing wrong in the essence. All OEM's do it! Some manage to hide details, some cannot, resulting in failure.

If you come out saying that Cayenne IS a Porsche, I'm sorry my friend, you are wrong ! Cayenne is not that more than a rebadged VW Touareg in essence. Have an SUV lover friend used to own both of them and Porsche Cayenne was rated much below VW Touareg for him. I heard it over and over from other owners as well. And don't forget this comparison is done between a mid segment vehicle and top luxury sport segment vehicle; in favour of the mid segment Touareg.


I think that the 9-4X really is a Saab. Albeit with a Cadillac sibling. It is not just badge engineering, like the 9-2x and 9-7x.

On the other hand, even Porsche cayenne has its siblings, The VW Touareg is very close to the Porsche in design, and the Audi Q7 is also close.

If the 9-4x goes like a Saab, it is a Saab.

But I would rather prefer the 9-3x anyway. In dutch orange. :-)


It's OK to be impatient, but remember that the sale isn't done yet. I would doubt that the Saab-management can make any deals with anybody at the moment.

Let's see what theu come up with after monday ;-)


You can't run before you can walk, I understand that and we have to wait until the dust has settled on the Sale to Spyker. I suppose i'm just getting impatient.

As for re-badges maybe we need to sit back and look at the evidence. Are the new SAAB's rebadges or are the other models by GM the rebadges? It's so easy to assume. But let's look at the SRX. What defines a Cadillac? To me it's a Big V8 with RWD and over the top styling. What do we have with the SRX? A FWD vehicle with a V6 Turbo. It uses the SAAB/HALDEX developed AWD system, has a turbo gauge and even a centralised speedometer. That's not very Cadillac to me.

Ok let's try another. The Insignia. Again, Same AWD system, Turbocharged petrol engines. Chassis developed by engineers brought down from Sweden. Hyper-strut suspension to reduce Torque-steer. This doesn't sound very OPEL either.

So who is GM when for the past 10 years they have been slowly putting SAAB DNA into all their products?

Which vehicles are the rebadges?

You don't have to do too much analysing to notice that The SRX is the Re-badge, The Insignia is a smaller version of the 9-5. The new Astra is stuffed full of SAABness, except SAAB hasn't got their version yet.

Some have already commented on the Cayenne and it does share a Volkswagen platform. In future many more products from Porsche will share architectures with VAG the NG Boxster is a good example.

The bottom line is, it will take years before SAAB will be in a position to launch a complete 'in house' developed vehicle. It's better to state that SAAB will never develop their own Architecture and really why should they?
Companies are very much into working together to make the balance-sheets work. It's a buyers market today. SAAB know it and should darn well exploit it.


Absolutely 100% spot on, WooDz.

So many of us have always believed that Saab's philosophy on car-building has been the right way to do things. What GM did was take so many Saab features and spread them through the rest of the GM range, whilst starving Saab itself.


I agree with much of what was said. However having a waiting list of 6 months for the 9-4x would be a major mistake. At least in the USA which will be the largest market. We Americans are used to walking on a dealer lot picking out our cars and driving them off within a couple of hours. There is way too much competition in the Luxury SUV space to tell customers they have to wait 6 months for a car.


You really got the point WooDz.

Thinking about all the stuff GM got from Saab I think I wonder where GM and especially Opel will stand without Saab doing the creative work...


I'm still holding out hope that the delay is due to some new engine offerings. I was underwhelmed when I first saw the list way back when, and from what I've heard Audi's turbodiesel is doing quite well in the USA.

The 9-4x will do great in the USA. I would buy one in a minute if it had a third-row seating option (large family). Or maybe Saab could think about spicing up the "minivan" selection here in the US with something unique...


@WooDz I have always enjoyed reading your articulate comments over the years. Hopefully there will be many more opportunities to headline blog entries on SU!

From my comment in a previous post;

“I have read that the reason for the delay regarding the 9-4x is due to the right engines or rather the lack of them. Saab engineers are keen to use fuel efficient and low emission ones, hence the delay.”


I have just found the source and it is from Autocar magazine dated 25th November 2009. It is under the Confidential news section:

“Rumours from Sweden suggest Saab has delayed the 9-4x SUV, which was due next year. Engineers are said to be unhappy with GM’s US petrol engines, which they regard as lacking lowdown punch and suffering indifferent economy”.


I would also add that compliance with the European emission regulations -in particular the Euro 5 standards introduced in September 2009, may also play a part. This could also be one of the reasons why the 2.8T V6 has been dropped from the current range.


Another thought that has crossed my mind is whether or not Spyker cars will bring down the average emissions figure for Saab Spyker NV vehicles as a whole. I am not sure if EU regulation looks at all models across a manufacturers range or will they be treated as separate entities?! If so, this would also add further impetus to finding the right engine solutions for the 9-4x.


I am confident that ingenious engineers at Saab are testing out a few novel solutions in between their focus on getting the NG9-5 market ready!


WooDz, as usual, you nail it my friend. Love reading your insights and wholeheartedly agree with you.


Reply to WooDz

It had crossed my mind before now as to the question of who is rebadging who and I have also wondered [as has till72] just how GM will fare without input from Saab engineers.

WooDz, you really can phrase such thoughts so well. It's a pleasure to read your comments.


GM and SAAB will have some tech-transfer in the next years, thus they will have some time to build up the new departments to substitute SAAB.


This could also be one of the reasons why the 2.8T V6 has been dropped from the current range.

I thought this is the engine of the NG9-5 Aero.


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