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by Swade

BusinessWeek covers the State of Saab

June 18, 2010 in Saabology

David Welch, Detroit correspondent from Bloomberg BusinessWeek, has done a 4-page article on the state of things at Saab Automobile now that they’re separate from GM and out on their own.

There are a few things in the article that might smart a little for a Saab supporter, but over all, I think it’s a pretty good piece.

The article tends to stick to old-world thinking…. that a car company can’t make it unless it’s big.

Resurrecting a battered brand is tough enough; doing so as a tiny, independent company in an industry dominated by conglomerates is close to impossible.

That’s Welch’s own line and it’s echoed by the analysts he quotes in his article. It’s a pretty safe point of view, with the odds in its favour. Pointing out that being big hasn’t helped many of the companies out there – to some it’s been a millstone – probably won’t do any good because it is the conventional wisdom and on many levels, it makes sense.

Saab are out there to try and prove a new paradigm in the automotive industry. One where you can be smart and small, where you can move relatively quickly, share your expertise for a fee and outsource the expertise of others where required. Whilst we can enthuse about the opportunity Saab has at continued life, one shouldn’t overlook that they have a tough road ahead.

But that’s where the tenacity comes in, isn’t it?

The article deals with the dilution of the Saab brand under GM’s ownership pretty well, and sums up the current business plan and the hope of building the ‘Saab 92′ with the obligatory Blackberry reference thrown in.

It’s a good, stimulating read. You won’t agree with all of it, but it’s good fuel for the fires of determination sitting in the bellies of some Saab folk.

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Saab’s Mike Colleran appearing on the internets

June 18, 2010 in Saabology

I’ll be frank and honest here….. If the head of Saab Cars North America, Mike Colleran, was a stock available for trade, my rating would be ‘caution’.

When Saab were going to split from GM, my hope was that someone completely new and fresh would be brought in at the top. Someone without GM experience. Kind of like what Ford did when they brought in Alan Mullaly. I hoped that Saab would take some time and find someone with a passion for the brand, the instinct to know what it needed in Saab’s biggest market and the cohunas to make sure they got it. I wanted another Bob Sinclair.

I’ve only met Mike Colleran once (it wasn’t positive, it was pure GM spin) so I can’t comment on him personally to any substantial degree but it’s fair to say I’ve been watching his work as closely as one can from half way across the world.

People I’ve talked to have nothing but good things to say about him, however, and his early performances, such as the interview on Autoline, prove that he’s had the requisite media training. That’s all very encouraging.

But then there’s phrases like “fuselage-inspired exterior” showing up on the US specifications list for the new Saab 9-5 and they make me think nothing but “GM’s still in the house”.

So I’m still watching. And hoping. And I think things are slowly but surely looking brighter. There are two recent Colleran-related articles on the interwebs that are giving me cause for optimism.

The first was this impromptu tour around the new Saab Cars North America building, given to a guy named Kip who just happened to be passing by Royal Oak and thought he’d stop and take a few photos. It was written up over at AutoSavant.

[There was no] receptionist and I was taking a few pictures when Mike Colleran, President and COO of Saab Cars North America came out. We talked and he said he had a few minutes between appointments and offered a tour of the facilities.

Apparently others have received the same courtesy when they’ve stopped by. I’m not suggesting that everyone should do so as I’m sure the people working there will get busier and busier as business picks up, but it’s good to see an openness to the Saab fans that drop by. That’s a personal approach that I didn’t expect, to be honest, so kudos. It’s very encouraging to see.

The second article is this interview over at Left Lane News, which showed up just today.

In the interview, Colleran offers answers with far more candor than the answers I got in my first meeting with him in Frankfurt last year. This is the reason my new-found optimism. Take this question and answer, for instance:

Diesel? Hybrid? Hatchbacks?

Colleran: The 9-5 wagon is coming in the spring of next year just after the 9-4x. Wagons are part of our future. We’d love to have a hatch, there’s no question that’s one thing that was part of our history. It’s under consideration but no final decision has been made.

As far as diesels are concerned, certainly the miles per gallon are attractive, but there are significant barriers to entry here in the U.S. with the emissions certification. We’ve got great diesels in Europe that just can’t meet the U.S. certifications. Right now, the the cost of doing that ourselves is prohibitive, but as an independent company, there are suppliers out there that we could partner with to do that. We’d love to have a diesel, it’s not in the product portfolio, but we’d love to have it.

I asked the diesel question of SaabUSA multiple times over the years and one of the incredibly frustrating things about them was that you could never get a straight answer. It was always an inconclusive answer like “We’re looking at it and hope to have it” but eventually, we had to figure out the reasons why diesel wasn’t probable for ourselves.

To see Colleran offer a straight answer on this – We’d love it but it won’t meet emissions and the cost of doing so is prohibitive – while it may not be the answer we wanted to hear, at least it’s straight and to the point.

I’m not sure I’m ready to give Mike Colleran a “buy” rating just yet, but I’m feeling a lot better today about the man in charge of Saab’s biggest market.

——

Related Content – You might want to check out Eggs’ interview with Mike Colleran from earlier this year.

And by the way, this post isn’t as arrogant as it might seem on the surface. Mike Colleran doesn’t have to do diddly-squat to satisfy me and I’m fully aware of that. My opinion of his work carries weight with no-one except me. He just needs to make sure that his bosses are happy. But…. I do have a history of looking at who’s doing what to look after the brand in the bigger markets and this is just a continuation of that.

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Thursday Night Snippets

June 17, 2010 in Saabology

Just a few quick goodies…..

——

An Audi Q7 with 62 speakers?

And it’s not even April 1st!

——

Saab have built somewhere around 4,400,000 vehicles in the last 63 years.

To those who ponder if there’s a place for the 9-4x in Saab’s lineup, consider that BMW have just built their 1,000,000th X5.

——

Early this morning I quoted an article from Bloomberg BusinessWeek about Saab’s upcoming ad campaign and a possible dealer reduction around the world.

Unlike this morning, the article now has a link to the online story, so you can go read the whole thing.

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A great gallery from Saabs @ Carlisle, from earlier this year….

——

And some fantastic photos from Spyker Squadron, from LeMans

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Custom Saab 9-3x in Germany

June 17, 2010 in Saabology

Newly arrived in my inbox, this Saab 9-3x was custom painted by Stephan Automobile, a German Saab dealer since 1980.

I’m unsure how this will be received amongst the faithful here, but I like it. And someone else certainly likes it, as the car has already been sold!

Thanks to Stephan Automobile for sending in the images.

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by Swade

Saab Twitter Links

June 17, 2010 in Saabology

One day we might look at Twitter and say “Oh, that was so 2010″ but for now, for me, it’s a very handy way to keep in touch and find out information that I might not otherwise have access to.

I thought I’d post some of the Saaby Twitter accounts that I subscribe to. You might find them handy as well.

And of course, if you’ve got some other Saab-related Twitter accounts that you follow and I haven’t listed them here, please let me know in comments.

The Saabs United Twitter account is @saabsunited and Eggs has his own account at @eggsngrits. I use the SU account to publicise selected posts from SU, as well as using it as my own personal account.

@elkparts is the account for site sponsor, Elkparts, and features a lot of good info that John gets his hands on.

@RGS_SAAB is the account for General Sales Saab in West Chester, PA. It’s pretty new, but they’re looking to engage a bit more.

Likewise, @NewSalemSaab is the account for New Salem Saab in Albany, NY. Darryl Carl has been sharing quite a bit of good technical information on this account, as well as on their Facebook page.

@Sandervd is one of the marketing guys for Spyker and always has a lot of good stuff, especially during race meetings!

@SaabNewsINTL doesn’t get used much, but might be worth a follow.

@SpykerSquadron is essential if you’re into motorsport

@Autoline is a good one if you’re into John McElroy’s work (which I am). It can be a bit overloaded with sponsor stuff and show announcements, but it’s handy to know what’s happening and when.

@genuinesaab doesn’t get used enough, but when Nick Taliaferro posts something you’ll be up to date.

@ShawSaab is the account for Shaw Saab in Norwell, MA. They post some good stuff.

@Autoextremist is the account for Peter DeLorenzo, Detroit opinionator extraordinaire

@Speedparts is the account for the Swedish tuning house of the same name.

@Tiff_TV is the account for Fifth Gear’s Tiff Needell. Great stuff!

@sniffpetrol should need no introduction.

@peterbackstrom is the account for the modern Mr Saab and Director of the Saab Museum in Trollhattan, Peter Backstrom.

@JoeFromSaab will give you the occasional gem from one of Saab’s PR gurus, Joe Oliver. Likewise, @SaabNewsroom will update whenever there’s a new post on the Saab Newsroom website.

Happy Tweeting!

And as mentioned, if you’ve got any other handy ones, please leave them in comments.

-

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by Swade

SOC 2010 Registration closes soon

June 17, 2010 in Saabology

This is just a reminder for all of you who are thinking of attending, that registration for the 2010 Saab Owners Convention – to be held in Aurora, Ohio – closes this Monday, June 21st.

Victor Muller and Jan-Ake Jonsson will be the honored guests at the SOC this year so it’s a great chance to go and meet these two fantastic people who were the keys to Saab’s survival during 2009 and the move to independence in 2010.

Special features of the SOC 2010 include:

  • A focus on, and celebration of, the Saab 99
  • Saab Cars North America Heritage Collection Display
  • Parts tent
  • Test drives of new Saabs (9-5!!) will be available
  • Technical Assistance
  • Seminars with Seth Benglesdorf, Nick Taliaferro, Gary Stottler, John Libbos (x2), Chip Lamb and John Moss
  • Track Day!
  • Round Table discussion with Mike Colleran and John Libbos
  • All the usual stuff like great people to meet and the big gala dinner.

This promises to be one of the biggest SOC’s yet, so make sure you get in and book your place now.

Click here to register at the SOC 2010 website.

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by Swade

Name the new 9-5

June 17, 2010 in Saabology

Here’s a good question that popped up on Twitter a few days ago, courtesy of @elkparts.

The 9-5 is called the 9-5 from a corporate point of view, but what about all those other suppliers and associated businesses who will have to refer to the new model in their literature and sales pages?

For example, the originator of this question, Elkparts, sells parts and accessories for Saab vehicles and typically, the various generations of vehicles are grouped together to make it easier for customers to find parts for their particular model. Consequently, the 900 model has two seperate spots to differentiate between the Classic Saab 900 of 1979-93 (called simply the Saab 900 at Elkparts) and the Next Generation Saab 900 that ran from 1994-97 (called the GM900 at Elkparts).

So what, then, should the new 9-5 be referred to as?

The NG9-5 – next/new generation?

The Indy 9-5 – suggested by Eggs on Twitter, due to it being the first car following Saab’s independence from GM?

The 650 9-5 – referring to the internal model name within Saab for the 9-5?

Your suggestions would be welcome in comments and once we’ve got a good spread, I think a poll will be in order.

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Report: Saab to launch ad blitz, trim dealers

June 17, 2010 in News

Bloomberg BusinessWeek have come out with a report today (no link yet, received via email) stating that Saab will soon launch an ad blitz to promote the new lease of life for the company and more prolifically, the new Saab 9-5.

“There’s a huge wave of media and communication” that will start in Sweden when the 9-5 goes on sale June 19, Adrian Hallmark, executive director of sales, said in a phone interview. Saab will spend more than $150 million on marketing in the second half of 2010 after spending “nothing” on promotions since the sale by GM, he said….

…..The Swedish carmaker will release the 9-5 in Belgium next week, the Netherlands the following week, and then other markets. U.S. dealers will start selling the car in early August, Hallmark said yesterday from the company’s North American headquarters outside Detroit…..

…..The marketing will feature “all media platforms” and include applications for Apple Inc.’s iPhone and iPad, Hallmark said. Saab dealers will arrange “hundreds of test drives” for potential customers in each market. “It’s coming in waves, market by market, as the cars are imminent and start to get launched,” said Hallmark

The same report also speaks of dealer cutbacks, in what could be an interesting and controversial move.

The spending on promotion comes as Saab plans to reduce the number of dealers by 50 to 100, from about 1,000, by the end of 2011, Hallmark said. The move will reduce expenses such as manager visits to dealers, shipping, training and support, he said.

“If we have 10 percent less dealers and the same volume, those dealers make more money and we have less cost,” the sales chief said.

Note that that proposed cut of up to 100 dealerships is a global figure, so there’s plenty of geographical scope there.

There was significant criticism in 2009 when a proposal was put forward to cut one third of Saab’s US dealers. This was whilst Saab were under potential ownership of the Koenigsegg Group.

This is a much smaller cut in percentage terms and spread much wider in geographical terms, but it’ll be interesting to see who is cut and why.

More good work by Ola Kinnander at BBW.

——

With regards to the advertising angle in that story, it’s good to see that print ads are already starting to appear in various markets.

This ad was in the Daily Telegraph on the weekend, sent in via email by IVR007:

I’ve also got it on very good authority that select US TV markets will soon see the following clip edited slightly and used as an advertisement:

httpvh://www.youtube.com/watch?v=0hc0buYIZXI

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by Swade

Saab 9-5 SU review – part 2 – Aero V6 XWD on the road

June 16, 2010 in Saabology

Jetlag is still kicking my backside, so I’m re-posting this to allow it to breathe a little longer. New content tomorrow.

Related content: Part 1 of the SU review of the new Saab 9-5

This has been at least 5 years in the making. Saab is said to have had a new 9-5 ready mid-decade but that vehicle was cancelled at the say-so of Bob Lutz (yes, I name names) and so the old faithful 9-5 was forced to carry on for another 5 years. Owners were asked to lease yet another vehicle – sometimes their third or fourth car of the same series. As rock-solid as the 9-5 became, a replacement was long overdue.

An all-new Saab flagship vehicle is a rare thing. The last all-new Saab from Sweden was back in late 2002. The last all-new flagship was late 1997 and prior to that it was in the early-mid 1980′s. I don’t want to overplay the sense of occasion, but this sort of thing doesn’t happen very often. Add to that the backstory about Saab’s survival against rather overwhelming odds and this really was a big day for a Saab enthusiast.

I started my Saab 9-5 launch experience with a day behind the wheel of the V6 Aero XWD model. This car has the high-feature V6 engine, assembled in Australia as it has been for the Saab 9-3 in the past. This engine is tweaked a little more so as to extract 300hp and 400Nm. That engine is matched to a six speed automatic with a manual mode that you can operate either via the shifter itself (slide it across) or via the flappy paddles on the steering wheel.
Read the rest of this entry →

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Saab 9-5 pricing – Germany

June 16, 2010 in News

The following is official pricing and equipment lists for the new Saab 9-5 in the German market.

I’ll get other markets up here as soon as I can. You can check out all available market pricing (once they’re up) by using the following link: Saab 9-5 pricing

Click to enlarge:

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SaabGB add some futuristic colour to their Build-Your-Own Saab 9-5 configurator

June 16, 2010 in Saabology

Spotted by ‘Me’, who doesn’t live in England but must have some spare time on his hands :-)

Colours on the configurator include the 2011 additions – Java Metallic and Laser Red (pictured) as well as Solid Black, and Oak!

Also, if you go to the UK configurator, switch between XWD and non-XWD models and watch the car rise and fall with the different chassis heights :-)

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Swedish Car Day 2010 – I’m coming to Boston, baby!

June 16, 2010 in Saabology

I’m pleased and excited to be able to let you all know that in August, I’m Boston bound and will be attending the annual Swedish Car Day hosted by the Village Auto Group, including Charles River Saab.

Date: 28-29 August 2010

Venue: Larz Anderson Auto Museum, 15 Newton St Brookline, MA

I’m really looking forward to coming over. I’ve been fortunate to meet some of the north-west Saabisti in the US but am really excited about finally visiting Saab’s heartland in the north-eastern United States.

I hope as many of you as possible can get along and attend the show.

Following are some notes on Swedish Car Day from Pierre Belperron, Service Director at Charles River Saab and the man responsible for putting Swedish Car Day together each year.

Swedish Car Day

On Sunday, August 29 Charles River Saab, Boston Volvo Village and Volvo Village of Norwell will present the 11th Annual Swedish Car Day at the Larz Anderson Auto Museum in Brookline, Massachusetts. Since its inception in 2000, it has grown to be a destination event, drawing Swedish car enthusiasts from all of New England, the Mid-Atlantic and beyond. Typically drawing over 200 cars and several hundred spectators, Saab has maintained a substantial edge in attendance, though the Volvo crowd has grown some over the years.

A first for 2010 is the August date. In the past SCD has always been in mid October. That time of year can be spectacular in New England, but it has also been miserable at times. In light of the rain/snow/gale we had in 2009, we pleaded with the Larz Anderson for a summer date, and they worked hard to move some things around so that we could have this late August date, which we hope will bring out an even larger throng.

Having moved all the festivities indoors last year with the awful weather, we came to appreciate what a wonderful space the Larz Anderson carriage house is for a gathering. Thus, this year we will have our featured presenters indoors. Whereas last year we featured the 1968 Saab Sonett of Ralph Bockoven, this year we will feature a Volvo and its proud owner to give a talk in the museum.

We are ecstatic to announce that for the Saab faithful in attendance, we will be graced by the presence of none other Steven Wade of saabsunited.com. Many of us lived and died by his posts last year as he so brilliantly chronicled the melodrama that played out during the on-again off-again sale of Saab. Past presenters at SCD have included John Moss, Peter Maitland and Keith Hart of Saab.

Of course, we will feature new product at the event, with the big highlights being the new Saab 9-5 and the Volvo S60. We are also working hard to get a pre-production 9-4X at the show.

A new addition to Swedish Car Day weekend will take place on Saturday, August 28 when we will partner with In Control Advanced Driver Training to host a day of intense crash prevention instruction, highlighted by the use of Saab and Volvo cars. Besides the excellent In Control half-day course, which features instruction in ABS technique, steering (slalom), tailgating and emergency lane change maneuvers (think moose avoidance), we will also provide cornering technique instruction and an autocross. Sorry, insurance regulations will not permit timing!

Stay tuned to our facebook page for more information. Registration will open in July.

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Press Release: Saab Automobile Settles with Creditors

June 16, 2010 in News

Trollhättan, Sweden.

On June 17, 2009, a creditors’ meeting was held by the District Court of Vänersborg where Saab Automobile made a proposal for a composition with its creditors to write down by 75% unprioritized debt that had accrued prior to the company’s reorganization. The proposal was approved by the District Court and, in accordance with the terms of the composition, payment of the composition dividend was to be made on June 17, 2010. All creditors with an undisputed claim, and who have submitted their payment details in accordance with the letters sent to them by Saab Automobile, will be paid on this date.

Jan Åke Jonsson, CEO of Saab Automobile, said: “I would like to take this opportunity to thank those loyal suppliers who have supported Saab over the past year – they have contributed significantly to the creation of an independent Saab. We aim to build on these partnerships as we roll out a new range of exciting cars starting with the new Saab 9-5 this summer.”

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Press Release: Saab Automobile Appoints New Nordic Region Director

June 16, 2010 in News

From Saab Global. This is a great appointment. Magnus is a blue-chipper, a very smart guy and one that Saab should do whatever it takes to hold on to.

• Key appointment to lead restructured Nordic organization
• Provides central support for independent branch offices

Trollhättan, Sweden.

Saab Automobile today announced the appointment of Magnus Hansson as Regional Director Nordic, responsible for sales, marketing, aftersales and business development in Sweden, Denmark, Norway and Finland.

Hansson takes up this newly-created position from 1 August. He assumes direct responsibility for the Swedish market, while Country Directors at Saab’s branch offices in Denmark, Norway and Finland will also report directly to him.

This new role is part of a series of key management appointments being made at Saab Automobile as the company establishes a new organization to take it forward as an independent business.

Announcing Hansson’s appointment today, Saab Automobile CEO Jan Åke Jonsson said: “Our home market in Sweden is a crucial component in the success of the company and we are delighted to have Magnus onboard. His new role will enable us to create and benefit from synergies with the other Nordic markets. Their offices have been set up as lean, independent operations and Magnus’s team will also provide dedicated marketing and business support.”

Hansson, 35, who will report to Adrian Hallmark, Executive Director, Sales, is currently Global Product Manager at Saab and brings a broad range of international experience to his new role during 10 years with the company. He is a former Country Manager in Canada, where Saab achieved record sales during his tenure.

Hansson will be succeeded as Global Product Manager by Christopher McKinnon, currently a group leader within the department. Johan Palmér will continue as Acting Director of Sweden with full operational responsibility until 1 August.

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US market: XWD vs BioPower part 2

June 16, 2010 in Saabology

Yesterday, I took my own amateur stab at why you can’t get an XWD version of the 2.0T Saab 9-5 in the US market, focusing on Corporate Average Fuel Economy ratings.

Today, I have some more educated insights for you.

——

I’ve been talking a little more about this with some people at Saab and whilst they agree that it would be a good offering to have, they have learned to live without it for several reasons (not a complete list, but just anecdotally).

First, the emissions problem. In a similar vein to what I wrote about yesterday, certain combinations of vehicle hardware just won’t fly in certain markets because of regulations in those markets and the expensive changes that would have to be made to some vehicles to get them into those markets. More detail on that below.

And second, from Saab’s point of view as a manufacturer and marketer, they have scarce resources to allocate for best use, and at the moment, the potential sales gains from other brands because of the V6 offering outweigh the potential sales lost to diehards who will only look at a 4-banger with XWD. They hope the 4-banger combination they’ve got in the US will satisfy – and it is a cracker of an engine that should be available there with a manual – but the equation of cost to meet emissions vs the limited potential rewards if they do so means that the business case for XWD in the 4-cylinder model for the US is quite small.

One of the commenters whose insight I’ve learned to rely on when it comes to technical matters is a guy named Johan. I don’t know exactly where he works, but he’s always got rock-solid views on this sort of matter.

He offered the following on my original post about this issue

There have generally been two reasons why some engine options aren’t offered in the United States; emission legislation and availbility of high quality fuels. I suspect the latter have improved in recent years though.

Today the car with its drivetrain must pass emission tests for its type approval. Want to sell the same engine option with both a manual and an automatic gearbox, well, then you need to do two type approvals. Add four wheel drive as option you’re up at four type approvals. Even if you know the engine will pass the test these tests aren’t exactly cheap. If you know the engine won’t pass, you first need to modify the engine/car (different catalytic converters, add on EGR system, different fuel tanks, different engine mapping and so on). During the years it haven’t been uncommon that some european engines have had to be modified in order to pass emissions in USA. For instance, ng9-3 cars that goes to US/Canada have a different fuel tank/fuel vapor system than the same cars sold in Europe (partly because of higher ethanol content in US fuels which raise vapor pressure).

BMW for instance have a long history of not selling several of its high performance M-models with the same engines as in Europe. Others have been “downtuned”, as the S54 in M3/Z3 M.

As for fuel quality, in the past BMW released one of its new V8 engines using Nikasil coated cylinders. Then when used with high sulfur fuels availible in the US the coating corroded and BMW ended up replacing many of the engines on warranty. High sulfur levels in the fuels have also been limiting the sales of many diesel engines in the US. First a few years ago the situation improved.

EU has also introduced fleet average fuel consumption standards (but in CO2/km rather than mpg) like the US, and for E85 cars sold in Sweden the manufacturer gets a credit. The added cost for making a car flex fuel capable is quite low so there are good reasons for doing that when you get a credit for it. But ethanol-gasoline blends are thougher on many materials so the fuel system and some engine parts have to be adapted for that. There isn’t a good reason why E85 fuels can be mixed with four wheel drive, it’s just that the fuel tank design usually differs between front and four wheel drive models and if the 4WD version can’t take ethanol you need to develope a new tank that can. Potentionally you could also lose some tank capacity with that.

In any case, in the end it comes down to what can be offered on the US/Canada market and what is economical to offer. To spend millions to develop and type approve versions that won’t be sold in any significant number is a waste of money. If you then have to pay fines because you can’t pass the corporate average fuel economy regulations that hardly improve things, but for Saab I don’t think it’s a big problem. It only cost $55/mpg above the limit, currently 27.5 mpg, and as Saab is a foreign manufacturer criminal liability shouldn’t be a possibility.

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