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Reflections on JAJ’s decision

March 25, 2011 in Editorial

There has been a lot of speculation and comments in the media regarding Jan-Åke’s decision to leave his post at SAAB.

E24, like always, bring in their “german expert” who of course tells the doomsday story about SAAB losing money and Spyker having no money left. With the words “It will take a miracle” they describe the german expert: Ferdinand Dudenhöffer’s opinions about SAAB. Well, we all know, and have known, his feelings about SAAB and one can only ask if he is trying to promote the german brands by talking trash about others? He has so many questions about SAAB and while reading the article I sort of get the feeling that he is short-sighted, he can only see one solution to a problem and does not understand that things can be handled in different ways… The fact that he is a professor does not strike me as impressive or make him an “expert” in any way. Things change, the world is changing and I don’t think he can actually see that…

Here is a translation from the article:

He has said it before and he is saying it again: SAAB will not survive in the medium to long term. Todays news that the last swede in SAAB’s managment team, CEO Jan-Åke Jonsson, who is now leaving SAAB is a tough beat for the company, but it is not a deciding factor for the car manufacturers future. Swedish CEO or not. It will take a miracle to save SAAB and I dont know any CEO who achieves real miracles, say Ferdinand Dudenhöffer, who is a professor in auto-economics at Duisburg-Essen university. After Jan-Åke Jonsson take leave the SAAB owner and Spyker Cars chairman Viktor Muller, is now to take charge of the SAAB “car” with two steering-wheels. As CEO and Chairman. Does he and Spyker have the competence to develop SAAB and reach the goal of break-even numbers by 2012?

- What Muller does as CEO for Spyker is a smaller market. Thinking about SAAB he needs to compete with larger volumes and newer models which is a completely different world. He might be able to keep going for a while, but not in the long run.

Last year Spyker Cars sold 31 696 cars, which in a way is an increase with 15% compared with 2009 but in a totally different league than the competition in the market where SAAB is acting.

- Even if SAAB reaches 50-100’000 cars, its not enough. They have to double the prices to be profitable say Ferdinand Dudenhöffer.

The professors prognosis is that the customers are running away from SAAB since SAAB falls between two chairs. The company can not reach the volumes and advantages to compete in the premium-segment with Volvo, BMW or Audi. SAAB/Spyker is not exotic enough to compete with Ferrari, Aston Martin or Lamborghini.

- I think SAAB is being erased step by step. They must manage large costs to turn the structure around. Spyker has no experience in developing 300-400 000 cars, they have neither suppliers, production, design, sales or the engineers for such manufacturing say Ferdinand Dudenhöffer.

I find it absolutely amazing that he can make such assumptions without even having seen the businessplan and to my knowledge ever even sat foot in Trollhättan or seen any of SAAB’s facilities and most important of all: never understood the “saab-spirit” of the people working there.

I have been following SAAB for the last 12 years, also worked at the company for more than a year, also know so many people there, read all the books written about SAAB and my opinion in all of this is absolutely clear: I don’t think JAJ would leave SAAB and let all his hard work go down the drain, if he didn’t feel at ease about SAAB’s current situation and that SAAB will, “as so elegantly said by Mr Spock in Star Trek”, live long and prosper :)

We thank you Jan-Åke for your fantastic work with SAAB and we at SaabsUnited, hope to get the chance to speak to you about your time at SAAB sometime in the near future!

105 responses to Reflections on JAJ’s decision

  1. +1 on that

    Most experts tend to base their opinoins on what they have experienced before
    I also think that most experts did not see the economic crisis coming, yet still keep posting their personal assesments as facts.

    The short story of experts, professors or not is:

    Enough research tends to support one’s theory

    • JL said on March 25, 2011

      Professor Ferdinand Dudenhöffer obviously has no knowledge of SAAB´s business plan and is speculating freely. Just like the Swedish car professor in exile in Copenhagen, Christer Karlsson, who openly has admitted that he can only speculate since he has no access to the business plan. These speculations are worth nothing.

      Now there is a good interview with JAJ on DI.se + a good interview with Nils-Johan Andersson (the CFO to be, who stayed in his old company). Plus DI did their own poll and 44% of their readers feel confident enough in SAAB to buy a SAAB. DI is doing a good job for us now :-)

  2. Massive damage beeing made to Saab today in the Swedish press. Massive! Every Saab hating “expert” is there taking turns stabbing at the neck.

    It’s a good thing the company is not run by German domestic car manufacturing promoting professors.

    • JL said on March 25, 2011

      I agree with the second paragraph but not the first. Not for a second. Everything is being straightened out as we write and SAAB sticks to the trend of coming out of every new challenge stronger than before :-)

      • I never said that the damage would be ever lasting, as usual, Saab the underdog of the car industry will pervail :) . Im just a bit angry with the ravenous Swedish media.

  3. At the age of 60 and with so many years of service I would say a few years of R&R are well deserved.

  4. That professor sounds like a fat donk.
    But anyway if you got money – do not wait too long before ordering new Saab, since it can be too late. Do not wait for 9-3NG or something. Get 9-5 now, it is not perfect but just a great car. It will be real help. If your relative or friend needs new car – make him buy Saab. Saab should be popular but few addition sales will help for sure.

  5. Only JA knows!

  6. “…I don’t think JAJ would leave SAAB and let all his hard work go down the drain, if he didn’t feel at ease about SAAB’s current situation…”

    Sure hope you are correct…but…needless to say…this does not look good. :-(

    Sure hope the reappearance of VA isn’t the reason.

    • I doubt that JÅJ is surprised by VA stating that he wants to come back.
      Considering the financing of the original purchase and the continued statements that VM would like to see VA in the picture, it can hardly be a surprise.

      I just think it is time for R’n'R, and he can now leave leaving behind at least a very good foundation for Saab.

    • VM said on Dutch TV today that JAJ told him about his leaving Saab as far back as october 2010. He quoted him saying: ‘I feel that Saab is now stable enough for me to get some rest.’ . This is not an exact translation but the gist of what VM said. I cannot find a link to the images but it ran on both RTL4/RTL7 and NOS. There is also a teletext item on RTL4 TT news about this.

      In the same item, it was stated that Saab have been invited by the Swedish government to elucidate the situation around the current value of the company. This is without doubt connected to Sweden guaranteeing the euro 400 million EIB loan to Saab which is secured by the assets of Saab. And they may also want to know more about the circumstances under which the only Swede in the top of Saab AB is about to leave the company.

      Ivo

  7. There are also some more balanced coimments in the Swedish press. I just saw the interview with Håkan Matsson at Di.TV – he interpretes JÅJ’s decision in the light of the past years’ hard and exhausting work. I also read the comment by Jonas Fröberg – even he balances his view and takes JåJ’s personal situation and work load as a starting point. They mention some alternative explanations to JÅJ’s decision and raise concerns about the future of Saab, too, but they balance their views.

  8. It’s human nature to always assume the worst. It supposedly comes from the genetic imprint caused by tens of thousands of years of living day-to-day at risk from being eaten by sabre-toothed tigers.

    It’s much harder but more logical to see this for what it is. The guy has had 40 years in. The last two he’s put in 110%, and now that things are finally under control, he’s retiring most likely because he’s just tired.

    These talking heads preaching doom and gloom either have egos to fuel, an agenda, or both. They’re a dime a dozen and come out of the woodwork anytime something can be spun negatively because it’s easy and people are predisposed to believing it.

  9. I do not know how VA’s admissions in Saab will influence the development of Saab, but during condition that the production becomes left in Trollhättan I am optimistic and hope that it can accelerate the production of a smaller model that I believe is important for Saab. It is important that we keep calm and believe in the future for Saab.

  10. JAJ and VM are a great team and the man has worked tirelessly for Saab, especially in the past 2 years. He is 60. He has had a schedule that I doubt many folks half his age could follow. The man deserves a break, time with his family and time for himself. Give it a rest you nay-sayer experts and so-called “professors.”

    All the best to you, JAJ, and thank you for everything you have done for Saab!

  11. German Motor-Traffic writes that the new finance Chief Nils-Johan Andersson did not even Start his new Job and is leaving Saab.

    I believe in the future of Saab, but if this news is true it is starting to frighten me a little bit.

    • He’s got an offer he could not refuse from his current employer.
      I wonder though if is any of the experienced guys from swedish industry with the world as market is ready for some adventure. That would be great, I think.

  12. Farewell, JÅJ. :(

  13. Live long and prosper! How elegant ;-) I know how I will wave at fellow Saab owners when driving now ;-) the \\//_ salute will live on!

  14. I’ve seen that coming.
    JAJ was the greatest leader SAAB could have had in almost three years of crisis and rebuilding the company. I think the strain must have been unbearable at times.

    JAJ did the best job anyone could have done. We all owe him a lot.
    However, I can understand very well he has decided to take his leave now. It is the right moment to do so. It is sad, but I think Mr. Jonsson has done enough for SAAB.
    Let’s wish him the best!

  15. No judgements on any expert who’s without foresight & hindsight yet I still have to say what SAAB needs right now is an insightful marketing team to freshen its global marketing performance especially in North America.

    The solid product leadership by SAAB derives from its fantabulous capability of new product development but hasn’t yet paired with a strong marketing deployment. If nothing learned from GM’s ridiculous marketing blunder previously, which was to align SAAB with other luxury cars (never perceived by the majority of US non-SAAB audience) , then this definitely would be an issue.

    The critical task right now for SAAB is to summon all those prospect customers rather than existing customers (we’re already united) . Time to expedite solving this visibility issue, do something outrageous & quick.

    • Agreed! SAAB isn’t luxury and the marketing is all wrong. Price the vehicle competitively and set your sights on VW, Subaru, Honda and Toyota. SAAB is still sexy but not as sexy as a BMW at current prices with outdated vehicles and essential only two proven models in their fleet, the 9-3 and 9-5.

      • The 9-5 outshines anything BMW has to offer or has ever had on offer. And all that at a better price.

      • Even though you don’t think that Saab are luxury, it would be economical suicide to start competing against VW and the japanese.
        The 9-3 is actually a good car, and the 9-5 is even better and newer.
        I would love to se a smaller lower priced model, but then you have to produce and sell in volumes that are more suited to the japanese or VW.
        Saab is in a transition period, and is moving along nicely but on a bumpy road
        Technologies are being developed and used, Innovation is coming back and partners are being found.
        This takes some time, and this is where VA comes in.
        If you start competing with the VW and the japanese you will have to go to a lower level of development and just produce a lot of uninspiring massproducts just like the rest and hope that it sells
        What would then be the reason to buy Saab?

        • Rune: I haven’t driven the new 9-5 but it looks like a Buick to me, “outshines” anything BMW has to offer or has ever offered is joke! SAAB is aquiring engines from BMW for their new 9-3 so apparently SAAB siffers w/ you Rune and likes their product as well. The price point is correct SAAB is more more the money but rightfully so, a BMW is a better vehicle and more expensive righfully so.

          khrisdk: As good a car as the 9-3 is as you say nobody cares and nobody is buying. To keep SAAB fanatics buying SAABs isn’t going to cut it, there simply aren’t enough off them as loyal as they may be. SAAB could make a much cooler Euro car that people could buy and they have in decades past. VW is all about that and Subaru is a good brand with loyalty and good bang for the buck! This is a bumpy road for SAAB true and I feel they have all their eggs in the 2012 9-3 basket. That’s a tall order and SAAB has a hard sell considering they may not exist in a few years and almos folded a year ago. That may scare away many new potential customers which SAAB needs. I’m not buying a new SAAB and neither are most people, facts not fanaticism will have the final say.

          SAAB depreciates like no other car in its class so why buy one new?

          • If you haven’t driven a 9-5, how can you tell BMW is so much better? I suggest you try one out before stating such a thing.

            What you just told us is what the usaual jornos is telling us. “The 3 german is always better”. And this is told to the readers without even trying them out!

            That is just plain stupid and gives the reader no real chanse of hearing an objective view.

  16. WM said on March 25, 2011

    Hopefully JAJ will now write a memoir (with an English language version, of course) and do a book tour. A much deserved retirement, and certainly going out on a high note.

  17. I just read this story and I am saddened because I have met Jan-Åke on several occasions.
    I only wish him well and all the best on his retirement.

  18. Spyker has [...] neither suppliers, production, design, sales or the engineers for such manufacturing say Ferdinand Dudenhöffer.

    This quote allone proves that this so called “professor” does not have any idea what he is talking about. Spyker doesn’t need all of this, because SAAB has this, as it has always had. This guy doesn’t understand the difference between the three different companies involved, so he thinks that a bunch of Dutch guys with wooden shoes sitting in Zeewolde with one finger in the leaking dike, are now in charge of designing and marketing SAAB cars… Pfff, we ‘ve been through all this, proves that ignorance is hard to battle…

    • “This quote allone proves that this so called “professor” does not have any idea what he is talking about. Spyker doesn’t need all of this, because SAAB has this”

      Exactly the piece I too wanted to point out. Well put.

  19. Two interesting and insightsfull articles at di.se (for a change). You’ll have to do your won google trans if you don’t speak swedish:

    1) Interview with JAJ (no conflict with VM!):
    http://di.se/Artiklar/2011/3/25/231359/Jan-Ake-Jonsson-Volymen-maste-upp/?sr=6&tr=286286&rlt=0

    2) Interview with never-to-be CFO Nils-Johan Andersson:
    http://di.se/Artiklar/2011/3/25/231355/ff/?sr=6&tr=286287&rlt=0

  20. Am I surprised about JAJ’s retirement move? Not really. Am I surprised about some german twat voicing the usual? Not really.
    During the days of the convoys, we here introduced a new term. Internet journalism, find something someone else said, and regurgitate it.
    This german person has been known on several occasions to have ended up with so much egg on his face, you would not believe it. Just stay calm and carry on breathing. (flippant mode on “and don’t mention the war”). I coulkd come up with a zillion reasons why something like Saab could possibly, eventually fail. Will it faiL?

    Nope, it is the only brand that has a strong and forcefull community behind it. A bunch of people that believe in the brand, and that will make absolutely certain that support is shown, on a daily basis.

    Jan Ake: We have met on severl occasions, I hold those moments in high regard. A gentleman like you should now sit back, relax and enjoy the ride. Go and take your wife shopping, go and be a grandfather, and enjoy life. We owe such a lot to you.

  21. What’s fun is how much egg will be on the face of these so called business experts when Saab becomes profitable and starts leveraging their engineering capabilities by partnering with other small firms to lower development costs. It’s a new world, and traditional models of the auto industry no longer apply. It’s about who you know and how well you can not only control your IP but combine off the shelf components in innovative ways, using design as your unique selling point. Saab is all over that game right now, in case they hadn’t noticed. We can thank Victor for this of course, but we can also thank Jan Åke for holding the whole thing together and keeping Saab from falling apart. It’s the engineers and employees who build our Saabs that make the company valuable.

  22. Anyone can understand that Jan Åke is tired after his efforts in the last couple of years, and everyone can sympathise with his wish to prioritise his private life, which was more or less put on hold for Saab’s sake. But the timing worries me a lot. Unlike what some have said, this was definitely not the best time for this. Saab isn’t out of the woods yet. If things go as we all hope and believe, then a year from now Saab will look infinitely stronger and healthier. That would have been a good time for Jan Åke to resign, after having demonstrably taken Saab through the crisis. Not now, when his departure is sure to generate a flood of doom and gloom predictions and wild rumours about conflicting opinions in the management team. Saab’s fragile sales situation doesn’t need this!

    Jan Åke knows this, of course, and yet he chooses to leave now instead of next year. Unless the underlying reason is a health problem for himself or a family member (which I really hope isn’t the case), then I’m afraid there is more to this than meets the eye. Some of all the wild speculations in the press might actually be accurate.

    • Maybe he’s just tired after years of fighting for Saab. Being on the watch 24/7, working Christmases and New years, missing out on spending time with his family and grand children, and his own health (he puts work and his family before himself, he states in the “Kampen om Saab” book). Perhaps he doesn’t have the energy left in himself to push forward with this high-energy attack Saab needs to do now. He’s been working unbelievably hard for 2-3 years straight. Many lesser men would have fallen by the wayside. Perhaps he viewed it as better that someone with that energy and perhaps different abilities takes over and pushes even harder. JAJ was perhaps the best leader for Saab’s difficult years but maybe there is somebody better suited for this period of aggressive growth. There are different types of leaders for different circumstances.

      (I second that he should have stayed for another year or two, but if he feels he doesn’t have what it takes anymore then it’s better that he passes the baton on)

      • I don’t think his timing was bad, as he decided (as he says to di.se) to make it public today long ago.
        The difficulty is (from my point of view) that so many things happened in the last days, and people would love to see all them related.

      • Well, his fight for Saab really started when he got the job 6 years ago, and escalate up to some time last year. Finding yourself in the middle of something most appropriately called a conspiracy sometime 2007-2008 must have been incredibly stressful, and I think it’s offensive to see it as a sign of leaving a sinking ship. If there is anybody that deserves a good retirement it’s JAJ.

        And, Dudenhöffer’s statement “I don’t know any CEO who achieves real miracles” just put the spotlight on that he doesn’t really know JAJ.

  23. Duddenhoeffer is a grumpy old man praying every time the same. He hadn’t achieved so much in his whole life, jaj did in the last 3 years for saab. Jaj saved 4000 jobs a company and made the foundations for a new saab. In some years saab will be an example for new thinking a car company

  24. Saab have been talking about breaking even at 120 000 cars or possibly even less.
    So why the fork does this guy talk about Saab not being able to reach 400 000? That’s not even the damn goal of the company!

  25. “Return of The Dude” Sorry, I saw the first movie and did not like it. Sequels are usually worse than their predecessor. Hey Dude, check the scoreboard. It reads:

    SAAB 1
    “The Dude” 0

    Peace and Love,

    Nate

  26. RS said on March 25, 2011

    Took some time off SU and I come back to this! :)
    I agree with those who say the Saab needs a Swede as CEO. To be a small Scandinavian (niche) car manufacturer is the companies biggest asset imho and without top management that hasn’t driven a Saab ‘a million miles’ in the Swedish forests, the company would simply lose too much of the heritage that make these cars exceptional in the end.
    It’s sooo easy to get lost -take the easy way- and make for example exterior design more important than practicality and quality/reliability. These are the decisions a CEO makes in the end.
    I don’t want Saab to become an other ovloV.

    • I had to re-read that, the first time I read it I thought you said ‘I agree with those who say that Saab needs a Swade as CEO.’ :D

      In all seriousness, JAJ did a great deal for Saab and I wish him all the best, but I am still a little concerned. I know this was flagged as a potential event as early as October 2010, given that this was the case, I’m a little surprised Saab wasn’t grooming any (preferably Swedish) successors, such as Mats Fägerhag.

      • RS said on March 25, 2011

        In my defense I haven’t been at my best lately, which shows in the horrible writing ;)

        What comes to grooming a successor I really hope VM understands the importance to have a level headed, extremely bright and diplomatic SAAB guy continuing JÅJ’s work in steering the ship despite all the turbulence.
        Difficult to see how such a person could come from outside the organization?

  27. “He has said it before and he is saying it again: SAAB will not survive in the medium to long term.”

    Now that’s one thing that’s for sure. Although this “long term” may turn out to be really long. If it’s longer than our lifetime, who care’s about this?

    What I’m trying to say is: This statement is vacuous. As such, it can never be falsified. It’s of no use.

    So stop listening to the experts, rather stick to those skilled in the art.

  28. This is sad and the timing could have been better. Waiting for a proper replacement and/or the 9-5SC would have been better. But I think good can come from this also. No matter how fantastic JÅJ has been, and he certainly has, a new CEO could lead to a confidence boost for Saab. JÅJ is still a Bagdad Bob to a lot of the Swedish press, even if he has been proven right, but a new CEO could really project the message “this is something I really believe in” with confidence.

    It has to be strong CEO, with the power to control VM/JC/VA.

  29. I have a great respect for JAJ and am sad to see him leaving, but between the lines he did hint about his departure in the past, saying how he’s not getting any younger etc. He was undoubtedly under a lot of strain, especially in the last few years. I don’t see any big stories here in the background however – after all he is staying for several more months to ensure a soft transition. I am also confident SAAB is robust enough to live throug this. Life will go on! Said that, I belive no timing in at least three years from now would be ideal as SAAB will continue to build up momentum for years to come.

    Sadly this made some of the doom and gloom stories resurface. I put no faith in preachings of proffesors Dudenhöffer and Karlsson. They are very unconstructive and should they decide to take a good look around themselves, they would be surprised to see SAAB is already proving them wrong. Still they can do much harm trying to make their dark prophecies fulfill themselves. It is interesting however that prof. Dudenhöffer is mentioning the volume of 300 – 400k. This is exactly what I think lies in SAAB’s future should they decide to complement their range with a sports hatchback the roughly the size of SAAB 99 – say 4,4 – 4,5 meter. But that’s another story.

  30. JÅJ in Swedish TV:
    http://www.nyhetskanalen.se/tv?videoId=1.2070087
    Just discussing the situation generally. (No breaking-news issues…)

  31. The ignorance of the average visitor of this site is amazing. Don’t mention anything negative about Saab or it’s management or we declare you insane. Remove your blindfolds and see what is going on. Victor Muller is a complete fraude. Not having kept a single promise in his 10 years at Spyker. Never made any profit despite the fact that he kept bragging about big profits next year. The CEO leaves the company, the head of sales leaves the company, the CFO signs but changes his mind.

    I know you all love your brand. But let’s just face the facts, this company has no future.

    • Only Time will tell
      Until then both what we assume and what you assume are our convictions, not facts

    • Coooool, dude !!

    • If you “Dude” doesn´t can handle the David/Goliath thing, then buy yourself a BMW. The fraude as you call him saved the company and no on els did. If you really think that it is easy to start a car company in the 21 century and get away with no difficulties, then it´s you who is insane. Most of us who visit this site is aware of the situation but keeping our/there tone in a positive mode.

      So who are you to tell me to loose faith in the under dog. Go mainstream if you like but I´m not a coward.

      I acually think that Saab can be a threat to some companies (german) in 2012. This little Troll company is going to build a great car from a coffee budget in less than 3 years time from scratch. And it´s going to beat there opponents in some areas. What´s that say to you….These Saab guys are smarter and faster than there GIANT ambient.
      You see that hurts all the detractors, are you one of them.

      Do you have any idé how much it cost to marketing a company from zero to 100 000 sold cars and to rebuild a sale organisation. I bet you think it´s just to klick a few fingers.

      To prove you are wrong is my goal and Saabs!
      Language please

    • So could this Dude be the well-known scientist from Germany whose singular brilliance makes him ever so popular with the German automotive press as it apparently enables him to make eloquent and ‘authoritative’ predictions about Saab without being hampered by any factual and tangible knowledge about trivia such as Saab’s business plan?

      He is not.
      RedJ


      All we need now is another bit of uneducated guessing put forward here by that other paragon of automotive business sciences: the best Carlsson of Denmark. For Christers’ sake… and nobody else’s, I hazard to guess.

      I sometimes wonder whether these two gentlemen really base their uninformed comments on some sound -even though unknown to me- principle of applied business economics or if they are just being economical with whatever intelligence they have been provided with by God or nature. You should have some of that if you have secured academic tenure. Or does this requirement no longer apply, these days?

      Ivo

    • Troll alert!

  32. I don’t think JAJ would leave SAAB and let all his hard work go down the drain [...]

    This right here is the natural conclusion anyone should easily come to. Anything contrary to that makes me think you’ve never heard/seen the man speak before–unless you’re claiming to have met him personally and that he’s radically different in private.

  33. Don’t miss the vote on DI.se. You’ll find it in the right margin, if you scroll down a bit, and it deserves a good old-fashioned SU vote-flooding!

    Stöket i bolaget fortsätter. Vågar du köpa en bil från Saab?
    * Ja
    * Nej
    * Kanske en begagnad

    which translates to:

    The disorder in the company continues. Would you dare to buy a car from Saab?
    * Yes
    * No
    * Maybe a used one

    You all know what to do!

  34. Wish JAJ well and thank him for his years of untiring service: Forever remembered as one of the Pillars who Refused to Buckle Under as GM threatened to turn Trollhattan into GhostBorg.

    However….

    What else would one expect? Saab isn’t so different from a sports team (die hard fans etc.) But when the team continues to flounder in the division (despite achievements…fill in the blanks) the GenMgr /Coach is either pushed out or (the smart ones) takes it upon themselves to resign with legacy, dignity and achievement intact!

    Let’s hope that the company has the wherewithal to see this rebuilding phase through for another 2 model years/18 months(?).

    But more of the same is impossible and North America is a write-off for the time being (no quick fixes: Pricing, Distribution;lack of Hirsch…where to begin).

    We’re in an early Post-Revolutionary Period of shakeout and reconstruction, maybe historically inevitable [ Note: 'Early'....the end of The Beginning...not 'End is nigh']. The Evil Monarch/Czar [GM] was deposed. But now what? Will The Revolution swallow it’s Own Children? I echo Rune, in another thread, that there might be more senior management ‘changes’. So Who’s Next? Marketing Department?

    Timing is not the greatest…Or is it the Ultimate Catharsis?
    To add to it: “MARCH 25, 2011, 9:25 A.M. ET.Sweden Debt Office To Question Spyker On Saab Collateral” From none other than the Wall Street Journal. One of our Preferred Advertising Channels. Where those winning ads were placed…

    • Well..that latest WSJ headline comes from Di.se..
      There are changes going on at Saab, and has been for a while.
      Not much news in that.
      It is BIG news that the CEO decides to leave, and it will start all kinds of rumors.

      But frankly I think that the people who wants to buy Saab does that, regardless of whatever excuse everyone else dreams up for not buying.

      My Brother-in-Law just ditched his 1 year old MB R500 to buy a 9-5 Aero with all the extras.
      We are takling cars at danish prices and danish losses when selling used cars, which means that his loss on selling the MB is probably the same as a new 9-5 Aero at US prices, so trust me, he means it when he decides to change his car back to a Saab.
      He doesn’t care if it is a GM product, if JÅJ retires or anything else that seem to matter to everyone else.
      He just wanted his Saab.

    • NTP you bring up some really central questions here on SU.
      Is it time for a revolution/evolution now will we see more new faces and old faces going out the door. Should Saab being an ICONIC brand go mainstream and search for yet another out of the standard box sitting under the lamppost, or dare to look elsewhere for new lateral thinking with a different perspectives. The technology engineering knowledge is there already in the organization, accountants as well. But a person being the “Corporate Storyteller” the person that aims for the prospective customers hearts.
      Buying a new car is not primarily logical thinking it is so much more emotional and stochastic.
      Prime focus must be on how to get people to buy NEW Saabs, unfortunately what we write and talk about here make no or little difference in NEW car sales (according to a Saab marketing individual). SU readers do not (on a general level) buy NEW Saab cars. If they do not enough often.
      As some have stated before, key issues is to sell the cars Saab makes. If there in some markets are unsold cars there must be issues to be resolve, wrong pricing, wrong specs, etc.

    • What I said was that future changes in management will give us a hint on which direction VM is taking our brand. I hope/believe the present management team will remain intact.

      But my original comment (and this one) is of little value. I feel there is a big piece of information missing. Or more confusingly so: The information is there, but it is being muddled by our own fear and doubts. (assisted by speculations made by journalists who are too old and lazy to be bothered with research and fact finding)

      On the positive side: All this noise helps create headlines. Hopefully even more people will realize that Saab isn’t only back from the dead, but they have some interesting new models up for offer!

  35. JAJ, first of all thank you for your immense efforts to make survive Saab in a very difficult and sometimes hopeless environment. Retirement is well deserved after such an enormous stress, whatever the implications for the future of the brand are. To bring the new models to market, has been a huge achievement.

    Aside from that, very difficult to interpret. It might be just a personal decision, what I am hoping for. Unfortunately, crisis management and turnarounds are so intense that they burn a lot of managers and also employees.
    If it is more, it is worrysome. I do not have full confidence into VM yet, but give him the benefit of the doubt. Without him and his efforts, Saab would not exist any more. The fact, that a new CFO signs, but cancels – maybe because the CEO who hired him leaves – is unpleasant, but alone not a matter of worry. That a prestigious sales head leaves is more of an evidence that something might go the wrong direction. Consistently, the sales figures are miles away what has been promised – more reason to worry. Maybe the task is much more difficult than what we all think. Under the umbrella of a bigger carmaker, buyer’s might have a lot more confidence. In no way, doubts about the financing of the company should prevent them from buying a product that is very competitive otherwise.

    The biggest worry just relates to financial health in the short run and to the busines model in the longer run. What I never understood is to focus on Sweden, UK and US as core markets. Two of them cannot be very profitable for years to come. Not to buy/ adapt a diesel for the 9-4x and a big diesel for the 9-5 is crazy, if not severe liquidity constraints restrict such reasonable medium term investments. To resign on continental Europe might be a huge mistake in the medium and longer term for the bigger models. The basic conception of the next 9-3 seems to be good, still I have my doubts on the design, if the Phoenix is the bellwether, and honestly on the ambitious timeline.
    For the time being, it is hope, that with the new models and some stabilization in the dealer network enough buyers will be there to come close to 80k for the year. A plan B must be there otherwise.

    • Good analysis and reflexts my views on this issue.

      I don’t trust VM yet because he has yet to prove himself with substatial results. I am also willing to give him the benefit of the doubt.

      Still JAJ’s leave at this time is curious, leaving AFTER the new 9-3 launch next year would have been a much better timing.

      Wait and see.

      Waiting and seeing.

  36. I am sad to see JAJ to leave as I think he is one of the best managers today in the car industry.
    I think SAAB, if it will continue to exist, it will under a Russian ownership. VA is pushing ahead to increase the financial control over SAAB and on the long term, SAAB represents a good brand for a potential Russian car industry….which it is quite non existent if we exclude what is left from the USSR car industry. I also think that in Russia, whether we like or not, there is enough financial background to take SAAB and make it moving forward. In my opinion, VA is only waiting for the new 9-3 model and then he will do a definite move to purchase the entire SAAB.

  37. Keep calm and carry on!!!
    General Director Bo Lundgren Swe. Dept Office just said on TV4 that there are no questions surrounding the securities for the loan (EIB I guess).
    G O O D N E W S !!!!

  38. SAAB is irrelevent and has been for some time now. As an owner of two SAAB 9-3s I can attest to the fact that a SAAB is inferior to its rivals; namely BMW, Volvo, MB and Audi. The vehicles are grossly overpriced, outdated and the fit-finish and quality moreover is sub-par for an upscale vehicle. Pings, rattles, sqeaks etc. are synonymous with SAAB and attributes to their purported “uniqueness,” there is No Longer anything unique about SAAB other than the fact they don’t sell.

    This sort of “uniquenss” is typically not coveted by car manufacturers but SAAB believes they can overcome perhaps with another famous SAAB moniker “quirkiness.” Yes in fact SAABs are “quirky” but that in and of itself won’t save them. GM was the death of SAAB and I see no way for them to become a serious contender; that is unfortunate in many ways beacuse SAAB used to be creative, relevant and truly fun to drive for those who didn’t want the sameness of a BMW or MB. Unfortunately SAAB hasn’t made a decent car in quite some time and as a result the market and consumer has looked elsewhere.

    Rather than try and compete with the “Luxury Brands” SAAB would be wise to set its sights on VW, Honda, Subaru & Toyota and make a Scandinavian inspired car that is different from the pack and more importantly AFFORDABLE! Price the cars competitively and work up your numbers, reputation and base. To try and take down BMW, Audi or MB will be disastrous. All is riding on the New and True 2012 SAAB 9-3 and that is a tall order my friends… ask any typical person this, would you buy a SAAB for 40k or an Audi, BMW, MB or Lexus?

    • Ika, I admit I do not often set foot in other cars. In January however, I had the “pleasure” of driving an Ovlov V50 for 1000 km. It was a complete and utter cræp-fest. The V50 was nervous on the icy roads. I thought perhaps it was something strange with the one I had rented, but no, some magazine made similar comments a few months later. In short, my Saab 9000 from 1997 runs rings around a Volvo produced ten years later. The V50 has nothing on your 9-3s either.

      Typical persons are heavily influenced by marketing and fashions. There is nothing anyone can do about that. Saabs are for educated people who take the time to figure out the answer to “how do I get from A to B in a safe fashion while still having a silly grin on my face?”. The V50 got me to B all right, but much slower than any Saab and I was a total nervous wreck. Yet, worldwide, I’m sure the V50 sold like hotcakes. Undeservedly so. If it could do it, then an independent Saab should be able to dish out their products without much problems.

      If everybody drove around in Audis, the world would be a very boring place.

      (To sum up this post: Try to spot the opportunities rather than focus on all the negatives)

      • Rune: I like SAAB as much as any goof ball but I don’t think they produce that great a pruduct and their long term viability looks doubtful to say the least. That is perhaps negative but I feel accurate as well. I’d rather drive a SAAB than a Civic but I wouldn’t buy a new SAAB and neither are most people. They need to attract newer buyers who aren’t as concerned about badges. Hyundai/KIA make solid not great vehicles that actually sell as bland and boring as they may be but they started from the ground and worked their way up and in the process upscaled their cars somewhat and here they are. SAAB is on the rocks like it or not and your 1997 9000 probably runs strong as do most old SAABs… SAAB had its time I think and for the record I think a Volvo is ugly, boring and too safe if that makes any sense.

        • The SAAB brand IS about being different. Not a brand that is supposed to attract everyone. So if saab is to persue avarege joe, the will have hard time to compete with the brands selling millions of “units”. VW, KIA, HUNDAI and so on make cars that nobady feel bad about, but at the same to nobady feels good about it either.

          Thay just pruduce units that gives possibillitys to transport them self on an ordely matter.

        • Ika, you can’t drop any car in as a replacement for a Saab.

          http://www.vibilagare.se/test/langtest/langtest-2011-saab-95-vinner-pa-vintern-30804

          And do I have to dig out the report from Folksam which shows that the MY98 9-5 beats all Germans when it comes to safety? (Ovlov caught up with it a few years later)

          Saab can’t compete on price with the Asians (the cars where you end up as the crash tester when you hit a moose or drive in snow — the job doesn’t pay very nicely, you only receive the price difference between the asian car and a proper Saab). Saab are however competing quite nicely with the Germans.

    • Your last sentence is flawed. It should read, “would you buy a Saab for $40k or an Audi, BMW, MB or Lexus with the same level of equipment for $50k.” That’s the honest value equation in the current market. I’ll take the Saab.

      • Jeff: I think you’re right on that price point the SAAB would be a better value but it depreciates at a ridiculous rate and we all know that. I would buy a 2-3yr old SAAB and save about 40% off the original MSRP. You can buy a used Turbo X for $23K with under 45 thousand miles and new that car is $44K. That’s SAAB’s top of the line sports sedan! Good luck finding an Audi, BMW, MB or Lexus for that and if you do it is bare bones! A 2007 Acura TL has a better resale value than a 2008 SAAB Turbo X or a 2009 9-3 Aero 2.8L V6 XWD. That is not good news for any new buyer!

        • The problem is, you can’t really use MSRPs to make your case, you need to use real prices. Saab’s don’t sell for MSRP, let’s talk apples to apples.

          2011 9-3 Aero vs 2008 Turbo X

          Realtime price averaging of a 2011 9-3 Aero XWD: $37,664, not $44K
          Real cars.com listing for 2011 9-3 Aero XWD: $33,860
          Real cars.com listing for 2008 Turbo X with 54,235 miles: $24,990

          Total depreciation: $12,674 Depreciation costs per mile: $0.23/mile ($0.16/mile based on cars.com real listing from Stetson Auto Sales)

          I understand you can’t get a V6 (and the 2008 Aeros don’t even come with AWD) in the 2011 9-3, so I’ll give you this example too:

          NG 9-5 V6 (2011 Turbo6 and 2010 Aero) vs 2008 Turbo X

          Realtime price averaging of 2011 9-5 Turbo6 AWD: $46,675
          Real cars.com listing for 2011 Saab 9-5 Turbo6 AWD Manual: $45,605
          Here’s where your argument really falls apart: Real cars.com listing for new never titled 2010 Saab 9-5 Aero: $35,990
          Real cars.com listing for 2008 Turbo X with 54,235 miles: $24,990

          Total Depreciation: $21,685 Depreciation costs per mile: $0.40/mile ($0.38/mile based on the cars.com real listing from True Saab, and $0.20/mile for the listing from Village Saab)

          2011 BMW 335xi vs. 2008 BMW 335xi

          Realtime price averaging of a 2011 BMW 335xi: $40,060
          The cheapest actual non demo 335xi I could find online: Real cars.com listing for 2011 335xi: $46,825
          Real cars.com listing for 2008 BMW 335xi with 43,416 miles: $23,698

          Total Depreciation: $16,362 Depreciation costs per mile: $0.38/mile ($0.53/mile based on real pricing information from Cars.com)

          So let’s recap, based on real cars.com listings that you can check yourself above:

          Saab 9-3 depreciation: $0.16/mile
          Saab 9-5 depreciation: $0.20-$0.38/mile
          BMW 335xi depreciation: $0.53/mile

          Keep in mind all these models had similar trim levels, except that the Turbo X included a 2.8L V6 engine vs. the 2011 9-3′s 2.0T engine. I’m happy to recalculate based on a 2008 2.0T with similar mileage as the Turbo X here ($0.34 a mile), but the lack of Aero trim, XWD, and options isn’t really fair. The BMW I picked doesn’t even have real leather, something all of these Saabs come with.

          Also, just for the record, you can get a 2008 Acura TL for $14,999, and the cheapest 2009 Aero I could find was a Sportcombi for $25,959.
          I could go on and on, but really, Saabs just aren’t depreciating that much worse than their competition at this point.

          • Amen, Jeff.

            This isn’t a new phenomenon either. When transaction prices are at a 20% discount, Saab’s depreciation becomes a non-issue. Saab’s depreciation compares favorably to all of the big boys – Mercedes, BMW and Audi, plus the other guys like Jaguar (ouch) and Volvo.

            Honda is the only untouchable when it comes to depreciation, and really, if you’ve driven a European car, then you are probably over the whole “rev to 8000 to have any fun”. Torque rules!

        • The laws of economy can be funy and that’s really not my field of expertise, so at first it came to me as a minor surprise to see that the new 9-5 actually sells in way lower numbers than a 9 or so (admitedly updated in the meantime) year old 9-3.

          I am a daily reader of Saabsunited and so much was written here, I think I am getting some fealing about what “went wrong”. First take a look in the past. Saab started its new life with nearly everyone thinking it’s out of bussines, low level of reputation, few bucks to spend on telling te world it’s alive and kicking, an old 9-3 and a huge new 9-5. To make matters worse media as we all know to well hated Saab at that time. There was also lots of unfounded criticism pointed at the management that the model range is to GMish. I bet mostly by people who newer even bothered to sit in a 9-5. So what could Saab do at that moment? Conjure 5 new models that had nothing to do with GM whatsoever out of thin air? Frankly I am fed up with such unconstructive bashing.

          And the result of it? The company with it’s reputation – we have to admit that – still at a low lewel has trouble selling cars for more than 40 000 – 50 000$ in USA or whatever they sell for in other countries. I think that has little to do with value for money, it has to do with perception of people who thing “oh no no, I will not pay that much money for a Saab”. To pay a 9-3 kind of money for a Saab – yes, that’s more acceptable, hence 9-3 sells a lot better even though a new one is on the horizon. Does that mean Saab needs to lower prices on their cars? What would be the message to an average consumer? That 9-3 is to be compared with Renault Laguna and 9-5 with Peugeot 508? That would be a short-lived quick fix and no way to build up reputation.

          So is 9-5 a mistake? I don’t think so. In my opinion 9-3 wouldn’t sell as well if there wasn’t a new 9-5. It does serve as a kind of halo car, a reputation raiser and will also help to sell a new 9-3. In time as public confidence increases and momentum builds, people will start recognizing 9-5 for what really is – a strong alternative for Audi A6. It will take time though and broader model range will help.

          I think Saab is going in the right direction, which brings us to the really critical point: the matter of time. Will the company beat it before it runs out and become profitable and capable of bringing new models to the market or the other way around. This is where VA comes in and he is ready to invest. I am not worried.

    • RS said on March 26, 2011

      As an owner of two SAAB 9-3s I can attest to the fact that a SAAB is inferior to its rivals; namely BMW, Volvo, MB and Audi.

      As an owner of two 9-3′s (with 500k miles on the clock combined) myself I can attest they are most certainly better than the competition you mentioned.
      No rattles or squeaks here.

      Have you actually driven these other cars? (base A4, C Merc, S40, 3-series). The only ‘problem’ with the 9-3 is that it has been on the market for so long that when people sit in the face-lifted A, B or C they go geez this is a nice car, BUT if you’d actually driven them for a week I know most (all) Saabers would come screaming to take a MY11 9-3 over anything else in the price/engine range.
      BTW to cut the V6 from the 9-3 was one of the dumbest moves Saab (GM) has ever made.

  39. It’s amazing how positive everyone is… JAJ leaves without reason. Normally you plan your retirement, it’s not something you do within a month. Specially at corporates like Saab. Why leave in the middle of your own developed businessplan?

    Beside that, the new CFO that was appointed, also rejected the position. In my opinion this means deep ****. Looking at the past of VM, it looks like he’s playing opportunistic games again, like he did with Spyker a few years ago. Launching unfinished cars (Spyker Paris to Peking), never get their targets, etc. Now over the head of thousands of employees.

    Maybe I’m too pessimistic, but imo there’s not a single positive thing about JAJ leaving so suddenly. I hope VM takes his responsibilities!

    • Basically you are saying that you fear the unknown and need to find someone you can blame?

      We can speculate all we want about JÅJ’s reasons and the timing of his announcement. There are a few sources now that indicate that JÅJ has wanted to pull back for quite a while now.

      You feel it is unfortunate that he chooses this particular time, “the middle of your own developed businessplan”. On the flip side of the coin: If the plan is progressing according to the schedule, there’s less need for JÅJ to be overseeing its execution. You could interpret his departure as a good sign.

      But at the end of the day: we just don’t know. All I can tell you is that Saab is still producing cars and they are apparently developing new models.

    • Robert, you said he left suddenly. He said himself he had been thinking about this (at least) since the end of last year, over 3 months ago, if not longer. I can only imagine how much work JAJ must have put in over the last 3-4 years….and that is after having worked in Saab for 40 years. He says he is doing this now because he has focussed all his time on his job (an that implies he has neglected other things). He says now he wants to retire so he can give those other things more time. This all seems like a logical thought process if he feels things are moving in the right direction with the right plan.

      Just because JAJ did not come out and say, “I plan to retire a year from now and I am saying this so you will not find it sudden when I do so.”…..does not mean this was sudden in terms of the decision. In fact, he is saying that he will remain available to assist in the smooth transition to the new CEO until September.

      This seems exactly like the type of calm, reasoned approach to things we have admired in JAJ all through the sale process and restart of Saab in 2010. While we appreciate his management skills and would like him to stay longer, after 40 years I think he has the right to retire if he feels he needs to. (My guess is he stayed on the last 4 years precisely because he loved the company and wanted to lead it through the darkest times.)

  40. Exactly

    “The Rumor is”

    This actually means that they have no idea what’s going on and try to analyze a situation they did not anticipate,
    Another rumor could be that JÅJ has gently phrased at several occations that he would step down, and that the decision to do it now is because everything is going according to plan, and that most of the needed developments and contacts has been made.

    Noboby knows for sure, so everyone’s guessing

    • At least they put “the rumor is” in the headline this time. Normally they just mix 90% speculation and 10% fact to completely misrepresent reality.

  41. Another link I’ve found a few days ago without understanding its sense .Would Mr Andersson take the place of JAJ ?
    Translation please
    http://op.se/ettan/ekonomi/1.2883972-saab-vd-hoppar-av-innan-han-borjat

  42. JAJ… Enjoy your well deserved retirement. No words can say how deeply we all respect you and your work. You are a permanent fixture in the story of Saab and your legacy will live on forever.

    Cheers!

    Jim

  43. PR and marketing-wise this circus feels amateurish. It is not helping Saab selling more cars in established markets. The PhoeniX turbo boast effect looks evened out by all this back flow. Let’s hope Russia and China are the new “key markets”.

    • How would you have suggested they release their prescheduled annual sales report and announce JAJ’s departure? You seem to be an expert on communication.

  44. better then to hear directly from the source, this is Jan-Åke in svd.se:

    After having been employed in-Saab for 40 years resigns Jonsson as president on May 19 in-context of Spyker Cars General Meeting. Thereafter, he of the Management Board until 1 September when he leaves the company.

    According to Jonsson himself, he has, especially in the last three-four years of Saab’s crisis, spent most of his time to the company. Now he will devote himself entirely to himself and his family.

    -The decision to resign, I took the-end of last year and I-Board of Directors announced my decision shortly thereafter. In addition to my purely personal reasons, I feel it is time to stop now when the company is on track and will show profitability within a year.

    But would not it fun to be part of?

    “One can always discuss what time it is best to do things. In our industry there will always be new accounts and new models. I have been around for so long in this business and seen so many CEOs to stop what we were told that they were vital for the company and every time, life has continued without them.

    When you announced your decision to the other employees?

    “I talked about it for the management team last night (read: Thursday night). They were a bit shocked at first, but then I explained my reasons they understood me. However, I have not had time to talk to as many of the other employees.

    Despite the fact that you told this to Muller for almost four months ago, it came as a surprise. Are you surprised?

    -Yes it’s me actually. There was even the suggestion of-press, and also internally within the company has not leaked even though there has been a recruitment process and that the matter has been out for a smaller circle for some time.

    What will you do then

    -Then take care of my wife, my children, grandchildren and my old parents, who all had to take over these years

    • Great clarity in that article. I think there’s basically two images of JAJ in the press- the serious CEO who shows little emotion at press conferences, speaks in a somewhat monotone voice, and keeps his cool at all times. That’s who I expected to meet last year at the New York Auto Show last year. The second is the image that any good reporter who has actually met the man would have- he’s engaging, funny, and very kind in person, joking with me and going out of his way to make sure I felt welcome.. I think the Swedish press owes it to him to understand that really was a decision about hiim trying to relax and be closer to his family. Give the man some respect.

      • There really seems to be a lot of respect for J-Å in the press (for once). Here is an example I can´t keep from you, it´s a journo at “Teknikens Värld” answering one of the vultures in the comments-section:

        What do you think we should do? Chuckle and come up with conspiracy theories? No you, you guys do that better. We stick to the facts.

        In addition, we met Jonsson many times and “fknow” him like that, which I assume you do not. We have and have had great confidence in Jonsson and what he has accomplished.

        The Jonsson want more time for other things such as family, is no trick? Jonsson is a man, not a robot. Would you sacrifice family, socializing and free time to fight for the survival? And commute from Stockholm to Trollhattan, if not every day, so very often?
        Jan Ake Jonsson, has put a body and mind in Saab and Saab’s survival. He has fought and probably have been really angry, sad and frustrated many times. But he has always been extremely good at is to remain calm, whatever the situation.
        He has always believed in himself and Saab. He has always hoped and fought while virtually all of Sweden had given up hope.
        Remember that he has been fighting with GM for many years, he was heading towards the Koenigsegg but it burst, he was still there and looked ahead. So popped up and the Spyker GM ignored both Spyker and Saab. GM more or less closed the Saab. But Jonsson fought on. Finally changed the GM, not only because of Jan Ake Jonsson, but he was a strong contributing force.

        To fight as he has done, night and day, for six years to get Sweden’s beloved car brand one of two on its feet and to look ahead, it sapped your strength enormously.
        He would certainly be able to continue to pull his load, but he is not prepared to do so at the risk of his life (family, health, etc).
        The CEO and other executives terminates its records are not uncommon. It happens often. But to a CEO or manager is fighting an uphill battle as long as Jonsson has done – it is rare.

        If there is anything we can treat Jonsson, it is to have more time for other things than just work. Whether it would be more behind the defection.

  45. I’m just curious as to what Swade has to say about all this.

  46. Don’t feed the trolls, folks. They are apparently very hungry.

  47. Professor Doomsday, you have a serious case of rectal-cranial inversion. Open your eyes, ears and whatever clogged orifice it takes to realize that Saab is back in a big way and is ready to EMBARRASS the German automakers once again.

    Prepare yourself for HUMILIATION.

  48. None of this is bad if Saab’s sales continue to increase. Saab should get its USA marketing right. I am a diehard Saab fan, but their USA pricing is scaring off many would be buyers. Saabs are transacting at $6-8k off sticker. They are actually very attractive cars if the marketing were truthful about the actual price they cost. Until sales numbers silence the doubters, we won’t be out of the woods. Saab needs a critical mass of sales, and must do what it takes to get them. The cars are nice but the price needs work. JMO.

  49. A said on March 26, 2011

    Obese troll alert!

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