Will Saab build only China targeted cars?

Thylmuc has a very good question, imo.

I mean that is what they need to do to pay their debts, but will the next round of deliveries after the suppliers are paid and restart delivery be used to build China-targeted cars?!

Quoting di.se: pang Da will get about 1.300 cars for their 30 M € and those cars will arrive in mid September to China. For the further 15M€ I suppose that Pang Da will get about 700 cars making a total of 2.000 cars.

We also know, that the Saab workers that are being paid, but have to be at home, will alter on work 1 extra hour for any 2 hours they had to stay at home. This is about half a month of workforce Saab can use to build the cars many are waiting for, amongst them Pang Da.

So I don’t think we have to worry about Saab forgetting the other markets only to serve the deal with Pang Da.

Jeff
Member
5 years 4 months ago

The better question to ask is how will this impact the yearly sales targets. Perhaps 80,000 this year is off, but maybe next year’s number could be adjusted higher given the sudden access to a huge new market?

till72
Member
5 years 4 months ago

Well, if they learned from 2010 an 2011 the set no public target and surprise everyone with a six digit number… πŸ˜‰

GerritN
Member
5 years 4 months ago

Anyone has an idea what the break even point is?

BoeBoe
Member
5 years 4 months ago

It was 120.000 cars and they try to bring it down to 80.000.
So I guess is it somewhere between 120.000 and 80.000 at the moment.

hughw
Member
5 years 4 months ago

isn’t the plant capacity approx 200 cars a day with only a single shift? Even if they targeted the initial run of 1300 cars for China (which I would doubt), that’s only about a week and a half’s work, so I don’t see overall deliveries impacted very much. For all we know, they’ll fill some of the China order from cars already produced and unsold.

till72
Member
5 years 4 months ago

IIRC they only produce ordered cars but if they mix the 1300 for China into the customer orders over three or four weeks it may fit nicely if you count in a bit of overtime every day.

coggs
Member
5 years 4 months ago
While this is good news I still see supplier delivery being an issue. Now into a month of production downtime it would take time for the supply chain to start to run efficiently even if Saab had a cash infusion for 25,000 cars. I don’t see the suppliers being all warm and fuzzy about ramping up for what appears to be an initial order of 2,000 cars. I would not expect to see 200+ cars per day rolling out the door anytime soon. But if this is managed right it is enough to get the production running at some level… Read more »
till72
Member
5 years 4 months ago

The initial order should be 5000+ cars plus the China connection given what we heared last week.

BoeBoe
Member
5 years 4 months ago
Do you guys really think that Saab will build 1.300 new cars for Pang Da? It would be much smarter is they sell the MY2010 & MY2011 cars they still have in stock in the USA. There are thousands and thousands of unsold (“old”) Saabs in the US which can only be sold at very high discounts. At the moment the cars in stock in the USA are good for 150+ selling days. That is 3 times more than what is considered “healthy”/normal. You should have a supply of 60 days. And a lot of brands have less stock. My… Read more »
michaelb
Member
5 years 4 months ago

If so, would actually be a smart solution.
But: Who legally owns those 2010 leftover cars in the US? Saab, SNAC, or dealers?

GerritN
Member
5 years 4 months ago

It’s so unbelievable sad that we are even contemplating grabbing the cars sitting in the dealers lots and shipping them to China. This action would definitely mean admitting defeat for SaabNA, a really bad start for its fresh new leader. This will probably be the last straw for many of the dealers.

quickening
Member
5 years 4 months ago

Nah. It needs to happen. My local dealership has three base model 9-5’s that they are never going to move.

SaabNA, basically needs to stock Navigation only units, but have them be “free” to the customer. Knocks that $2000 off, makes the car interior look fantastic, and isn’t a loud mouth incentive.

Kikaluka
Member
5 years 4 months ago

A search on Cars.com shows there are at least 1188 new 9-5’s out there. If you include “navigation” in the search, there is only 98 left. “Head-up display” shows only 56 hits. The current inventory is not was is needed to get the brand going in the US. Getting those under equiped vehicles to China would be a very smart move.

SaabSouth
Member
5 years 4 months ago

It is not a ‘deal’ until the money is in the bank….. surely we have all learned this by now?

BoeBoe
Member
5 years 4 months ago

Muller said the 30 million for the 1.300 cars is already wired.

The other deals still have to come through.

Thylmuc
Member
5 years 4 months ago

If I were to buy products from a company known to have run out off cash,I would contractually make sure that the money I gave to them would be used to make my products, not flow into day-to-day financing with the potential risk that the company runs out on cash again before they were able to build my products. But I’m sure the situation is a bit more complex.

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