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Report: Subaru to build Legacy and Outback in Trollhattan

January 31, 2011 in News

UPDATE II:

OK…..

The exact nature of the story isn’t clear, but further communication indicates that there will be something going on here, relating to work being done using Saabs facilities, but nothing like cars actually being built on the site.

It seems the exact nature of the engagement will be announced later today.

UPDATE:

The initial reports spoke only of things from the Subaru side. There was no comment from Saab.

The first report mentioned was at Dagens Industri (at this URL), but they seem to have removed the report. Other services such as TTELA, Swedish Radio and SVD ran the report as well.

The initial contact that I’ve been able to make with Saab, via email, indicates that this story is most likely in error. There are further checks taking place, but right now it looks like this was a speculative report based on some comments from a Subaru executive.

If I hear anything more, I’ll let you know.

——

This is just hitting the news services in Sweden…..

From TTELA:

Subaru wants to develop in Trollhättan

TROLLHÄTTAN – Japanese car giants Subaru wants to develop two of its car models in Trollhättan. The plans have been confirmed by Subaru Nordic’s CEO Torbjorn Lillrud.
Subaru plans to further develop the model Legacy and Outback for gas.

Torbjorn Lillrud stated the following to Dagens Indusri, DI:

- It is unique to a foreign car company will start manufacturing in Sweden of a model that is partly developed in Sweden.

According to DI Legacy and Outback rebuilt in Saab Automobile’s facility in Trollhättan.

Victor Muller’s very keen to drive down Saab’s break even point and increase profitability. One way to do that is to reduce costs. The other is to bring in outside revenue.

Sure beats building windmills :-)

I’ll trace other reports and see if there’s anything more to report about this.

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55 responses to Report: Subaru to build Legacy and Outback in Trollhattan

  1. Henke said on January 31, 2011

    Great News! I love how SAAB operates nowdays!

  2. Sandy said on January 31, 2011

    Whooohaaa, where did that one come from!!!???
    Great news, Subarus > windmills = True

  3. Carl-Henrik said on January 31, 2011

    Can’t find the news on DI-site, but perhaps they add it later during the day.

  4. matsvbg said on January 31, 2011

    Well….Saab has already created the best looking Subaru ever (9-2X) so why not…. ;-)

  5. Jeff said on January 31, 2011

    WTF slash where the hell did this come from? Swade, did you know about this in advance? Wink once if yes, wink twice if no ;)

    I was just behind a Subaru Legacy PZEV and looked it up, very cool engine tech they have. This is so wonky, yet awesome. Victor is something else- that man has quite the rolodex.

    So wait…is it cheaper to build them in Sweden than Japan for export? Any currency/trade experts here?

  6. matte said on January 31, 2011

    Maby its “Ana specialbilar” not Saab to rebuilt the Subaru? They did it to the 9-3

    • Yerrun said on January 31, 2011

      Heard something on the radio and -indeed- it seems to be ANA’s gas technology who might be implemented in a Subaru, in some empty buildings owned by SAAB. The Subaru guy said they have nothing to do with Saab. (apart from renting a building maybe). But this just how I interpreted it…

  7. Gustaf said on January 31, 2011

    This is great news from break even point of view. But, can we be sure this is not a Trojan? Subaru is a very much a 1 hands choice for some former SAAB buyers. On the other hand, Subaru is considered a very highly reliable brand (ADAC) so for them choosing a SAAB plant ensures SAAB has a high quality production line :)

  8. Red J said on January 31, 2011

    It seem like everything started at DI, but DI has retired its article.

    As there is no official press release from Saab or Subaru/Toyota, I would say that this piece of news may become reality but not now.

    • Arild said on January 31, 2011

      And that says it all about the credibility of DI. A credible news media would never ever remove an article. A credible news media would update the article or write a new article that sets the record straight.

  9. Jeff said on January 31, 2011

    Here’s the piece from svd.se:

    Car giant Subaru is planning to start a new factory in Trollhättan. This is where the Japanese brand would further develop gas models of its Legacy and Outback.

    “It would be unique for a foreign car company to start manufacturing in Sweden a model that is partly developed in Sweden,” says Subaru Nordic’s CEO Torbjorn Lillrud to Dagens Industri.

    The newspaper said that the cars will be built on the Saab Automobile’s facility in the resort.

    I’m trying to figure out if the “new factory” and “on the Saab Autombobile’s facility” are conflicting or this means they want to literally build another factory on the Saab lot. Could just be bad translation or crappy reporting too.

  10. Hans H said on January 31, 2011

    I like Subaru. They build quality cars without shouting about it.
    I like their engine filosophy. They have engines sounding like a turbocharged good ole’V4. Double Saab-point :-)
    And they, too, has a rallye heritage.

    Perhaps the 9-2x will get its follow-up?

  11. Avatar Image

    Swade said on January 31, 2011

    Tried a call, couldn’t get through.

    Two email sent. Still trying to chase it up. Big story if true.

    • Jeff said on January 31, 2011

      Bigger than the BMW deal in my opinion. This would send a huge signal to the Swedish government that they would have lost a major industrial link to the rest of the world if they hadn’t pushed for guarantees for Saab. Just a year ago Trollhattan seemed like a city that was going to lose half its population, now it appears it may be going the opposite direction, precisely because of Saab.

      If that doesn’t shut the Swedish press up over the value that Saab adds to the local economy, nothing will.

    • Avatar Image

      Red J said on January 31, 2011

      I think Yerrun’s post is the only one that makes sense.
      ANA Specialbilar are the ones making the gas transformation of the 9-3SC, and they seem to be doing a pretty good job. So it would make sense that ANA Specialbilar also make that gas transformation for Subaru.

      That said, if Saab was dead by now, ANA Specialbilar wouldn’t be doing a good job transforming the 9-3 SC from petrol to petrol+gas and thus they wouldn’t have no references to get such a job from Subaru.

      All in all, this new contract will bring some jobs to Trollhättan, ANA Specialbilar stated last year that they weren’t able to cope with the demand, and Saab will have some minor extra income as a rental fee for the building.

  12. Daniel G said on January 31, 2011

    From what I hear they will adapt/rebuild the cars, not build them from scratch in the Saab factory.

  13. Yerrun said on January 31, 2011

    Since the Spyker stock is open, I don’t expect any official news until 5PM (Swedish time).

  14. Avatar Image

    Swade said on January 31, 2011

    UPDATE:

    Made contact with Saab, who don’t know where the report is coming from. First they’ve heard.

    I’d suggest it’s a smaller-scale thing, possibly along the lines as suggested in comments above about gas conversions at ANA or something similar. Seems the report may have gone up prematurely without the full info being known.

  15. Lats said on January 31, 2011

    Just discovered this story on the Autocar website indicating that some Americans believe Subaru are a Swedish brand already.

  16. turbokalle said on January 31, 2011

    Does GM still own part of Subaru? Anyone knows?

  17. Jelger said on January 31, 2011

    @turbokalle:
    No, GM pulled out completely a couple of years ago. That is exactly why a couple of Saab-Subaru common developments stopped abruptly. (Remember the Tribeca/9-6X shared SUV that was supposed to come)

  18. SomeMore said on January 31, 2011

    The news comes in a slightly more serious form ( from the usually fairly trustworthy swedish paper GP )

    http://www.gp.se/ekonomi/1.540900-subaru-gasar-pa-i-trollhattan

    Apparently it is a small scale conversion of some of the Subaru models to a different type av engine. Not a big deal for SAAB and nothing is signed off yet. It might take place in SAAB owned buildings though…. hopefully this one is fairly trustworthy.

    There is also a report that even if this is very small, it could become really profitable for SAAB if it became a trend.

  19. Avatar Image

    Swade said on January 31, 2011

    Note the new update (#2) in the post.

    There’s something going on, but the nature of the work is unclear. Nothing as big as building cars, though.

    • Bravada from GMI said on January 31, 2011

      My initial guess was Subaru using Saab’s new AWD setup (fossil-powered front axle, electric eAAM rear axle), but I guess Yerrun is probably more right. The local Subaru importer might rent a building from Saab to convert cars to CNG…

      This would mean Saab’s CNG programme is not enough to keep the operations running, which is sad. I would have hoped for Saab to have been on the cutting edge of CNG deployment in automobiles…

  20. Thilo said on January 31, 2011

    Teknikenvärden has also an article about it online:

    http://www.teknikensvarld.se/nyheter/110131-subaru-saab/index.xml

    Seems to be gas conversions of 2 existing Subaru cars.

  21. MarkoA said on January 31, 2011

    That sounds like good news. Everything should be done to get Saab to make profit. And I don´t mind possible Subaru connection. It makes sense in every way. Probably that would mean gas conversions sold by Subaru Nordic only, I guess?

  22. Thylmuc said on January 31, 2011

    CNG and LPG are only popular because of tax reduction on the fuels. In Germany, these will end in 2018. What about Sweden? They are not really a way to get away from fossile fuels, though they do have environmental advantages.

  23. Paddan said on January 31, 2011

    Maybe Saab has been hired to figure out how to repair the front end vibration/shimmy that seems to be standard on the NG Outback wagon ; )

    • MarkoA said on January 31, 2011

      LOL! Though there no need for such.. It´s only US build versions that shake. Other versions have slightly different suspension and there´s no reports of shimmy on other forums.

      • Paddan said on January 31, 2011

        Its hard to believe they haven’t adopted the other suspension system. I’ve read how they’ve taken back 2010 models and the replacement ’11 has the same issue. I had a similar issue, along with many other issues on a 1994 NG 900 – the first sold in the US – and it is like Chinese water torture.

  24. Ante said on January 31, 2011

    Updated on ttela: http://ttela.se/ekonomi/naringsliv/1.1104534-subaru-vill-utveckla-i-trollhattan

    So it is an italian company that is going to convert Legacy and Outback for the swedish company car fleets. Prerequsite; the swedish norms for what the hell an environmentally friendly car really is. The only thing SAABy about it is the location!

  25. Gustaf said on January 31, 2011

    The news have now even hit the Gothenburg Post:
    “Men Subaru samarbetar inte direkt med Saab:
    -Vi har inga barn ihop med Saab. Kan vi bidra till att Saab överlever är det ju bra, men det är inte något som har styrt projektet, säger Thomas Possling, informationschef på Subaru Nordic.

    Före sommaren, troligen inom två månader, tänker Subaru fatta beslut om man ska satsa på serieproduktion av gasbilar.”

    Google trans:
    But Subaru does not cooperate directly with Saab:
    “We have no children together with Saab. Can we help Saab survive it’s good, but it is not something that has guided the project, said Thomas Possling, CIO of Subaru Nordic.

    Before the summer, probably within two months, thinks Subaru decide whether to go for mass production of gas cars.

  26. Ante said on January 31, 2011

    Ok, now I’m confused!?!? The original article is back on di.se (http://di.se/Artiklar/2011/1/31/225907/Subaru-bygger-bilar-i-Saabs-fabrik/) and now there’s also a quote from Fägerhag. According to the article there are 5 vehicles produced and 2 in the SAAB facilities. WTF Is going on…

  27. UWb said on January 31, 2011

    Remembering the announcement that SAAB will take back some of the temporary workers that were laid of before Christmas and the majority of them should work at the prototype line. The general comments was that the new 9-3 and concept cars were to be built, but it could also be used for converting the gas-Subaru’s.

  28. UWb said on January 31, 2011

    The best summary has been found in “The Local“. It states the following;
    - Facilities only renter by SAAB, otherwise SAAB is not involved, not economically nor technical
    - This is an initiative by Subaru Nordic only
    - This is aimed for the Swedish / Nordic market to start with, but there are prospects of increase this if interest is in other countries
    - Up to 2 000 cars per year is the initial estimate.

    • StefanH STHLM said on February 1, 2011

      Some news mention that BRC (who´s renting facilities at Saab farmyard) might need to lend people from Saab production. The only Saab connection so faar in news. a f a i s

  29. Ante said on January 31, 2011

    And now di.se changed the story to BRC building a production line in SAAB facilities and that SAAB staff may be involved in producing Subarus.

  30. CJ said on January 31, 2011

    Small platform partner?

    That would be GREAT news!

    • GerritN said on February 1, 2011

      That was my first thought too.
      Somehow I don’t see Saab and BMW sharing platforms. Subaru would be a good match, though. Saab WRX and back to WRC!

  31. Quijote said on February 1, 2011

    Hey don’t dis my windmills!

    =)

  32. saabdriver said on February 1, 2011

    A link to DN Sweden :
    http://www.dn.se/motor/nyheter/subaru-gasar-pa-i-trolhattan

  33. peeceepeh said on February 1, 2011

    Let’s hope that deal get settled.

    It would help SAAB to reduce it’s costs.

    It would help Trollhättan to build up it’s competence in this area. Which also would help SAAB, as SAAB will be able to benefit from this albeit external know-how.

    And if BRC indeed will hire SAAB personnel, SAAB will get a staff training for less then free ;-)

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