Bulletpoints From Saab’s Reconstruction Appeal

In the third and fourth appendices to their reconstruction appeal, Swedish Automobile lists the quality and operational improvements, as well as several new advancements we’ve heard about behind the scenes but haven’t been able to share with you publicly. This document changes that, and is further proof that the company deserves to live on.

Want an example of how Saab has been spending their EIB environmental loan prudently besides the incredible 119g/km CO2? There’s more information about that Extended Range Electric Vehicle à la Chevy Volt or new Volvo V60 Plug-in Hybrid mentioned in their press release from this morning. Read about that plus other highlights after the break.

Appendix 3

RECONSTRUCTION CARRIED OUT BY THE COMPANY’S ACTIVITIES AS A

RESULTS OF THE FORMAL RECONSTRUCTION 2009

Background

  • Former owner General Motors liquidation of the Company (the januarrfebruari 2010) gave big consequences in terms of sales shocks, produktíonsstopp and large âterverkningar with suppliers, which were not anticipated during the reorganization 2009th
  • ‘The company has major cost and investment for reconstruction of activities, including the establishment of a previous owner from General Motors standalone companies, as well as in future automotive products, which strained liquidity but added basis for positive resultatförbättiingar within a couple of years.

Examples of Operational Improvements 2009-2011

  • Comprehensive quality improvements has yielded 20% lower warranty costs and lower production costs.
  • Reduced structural costs of production of approximately 20%. Repatriation of some tasks within the organization that resulted in decreased total cost of purchased services such as in component manufacturing, property maintenance and installation services.
  • Achieved status as Sweden’s most effective production form of profits from “Swedish Lean Award.”
  • Took home manufacturing the new 9-5 Sedan from Opel in Germany and the 9-3 convertible from Magna in Austria to Trollhättan and thus reduced manufacturing cost.
  • Launched new 9-5 Sedan in Europe and North America in mid-2010 and the new 9-4X  in North America in mid-2011.
  • Green advanced technology introduced in production have been developed that gives 15% energy such as energy efficiency in painting 25% by an efficient one coating process developed in collaboration with universities and colleges.
  • Developed a unique, patent-pending propulsion concepts EREV (Extended Range Electric Vehicle) that enables reduction in fuel consumption by 75% in the certification cycle. (I.e. the 9-3 would be under 50 g CO2 / km). This is a so-called full-hybrid concept, which could allow the various Driving modes. For example, pure electric mode; When this is the best, pure electric trains, where are the best and combinations between.
  • Started development of a custom modular car platform that will be used in next-generation Saab 9-3. This platform is developed on the model of Scania uses for their products. Additional future car models will be use the same modular platform which will lead to radical reductions in development costs (3O ~ 50 ° / o) and short lead times (up to 1 year).
  • Efficiency in the “Technical Development” Department in 2009-2011 has a saving of about 400 million annually.
  • Started selling Guidance and testing services to external customers. A number of Swedish and foreign large industrial companies are now in the customer base. This makes it possible to share fixed costs between external customers and their own group.
  • Established a series of partnerships that aim to provide competitive advantage through access to technology in a cost effective manner:
    • eAAM Dnveline Systems Inc., with Ame1icanAxelManufactu1ing (AAM) for development and manufacture of an entirely new powertrain (eXWD).
    • BMW for development / delivery of engines.
    • Vicura, owned by the Fourier transform, for gearbox development.
    • ZF for the delivery of complete Chassis system, including manufacturing operations in Trollhättan.

 

 

Appendix 4

EXAMPLES OF PLANNED RESTRUCTURING OF THE COMPANY

ACTIVITIES 2011

Examples of planned business improvements

  • Further reduction in structural costs in the order of 20% is planned as part of the now-initiated reconstruction.
  • Images of a Sweden-based joint venture company (“NP] V”) for the development of three new Saab models. NPJV comes to 50 percent to be owned by the Company and 50 percent of Youngman Passenger Car. Cooperation is the basis for an expansion of Saab product portfolio with three models that have not previously been part of the Company’s current or future portfolio.
  • Purchase Cooperation with Youngman with reduced purchasing costs.
  • Distribution with Pang Da predicted to lead to about 40.000 sold cars on an annual basis within 3 Ari China alone.
  • Establishing distribution in growth markets such as Brazil and Russia. Preparatory measures already taken.
  • New Saab 9-5 Sport Combi is fully developed and will be launched only one few weeks after the restart of production. As previously 9-5 Sport Combi ended produced in early 2010, the new 9-5 Sport Combi is a very good opportunity to give a volume/increase in revenues.
  • New 9-4X is ready to be launched in Europe and Asia during the proposed reconstruction. The 9-4X is launched in fast-growing market segments where Saab has not previously been represented, and represents an excellent opportunity to give a volume/increase in revenue.
Tim
Member
5 years 13 days ago

Jeff, is there anywhere a PDF of the appeal?

Quixcube
Member
5 years 13 days ago
Now that’s more like it! Those are real and solid reasons why Saab should continue making cars. Making more of the same the same way wasn’t ever going to be good enough to maintain them into the future. I am so excited to see that Saab has these exciting plans to make new cars in new ways! The big advantage of being small is that you can do things differently than the juggernauts who are encumbered with momentum and tradition (the bad sort of tradition, which isn’t the same as heritage). And I am so happy to see that Saab… Read more »
Audun
Member
5 years 13 days ago

+1 🙂

kochje
Member
5 years 13 days ago

+10

Allan B
Member
5 years 13 days ago

+93 (with an electric drivetrain) 🙂

Audun
Member
5 years 13 days ago

🙂

JH
Member
5 years 13 days ago

Now I am even more assured (if possible) that Saab must and will live on! 😀

sonett71
Member
5 years 13 days ago

Yeah! 100 %

Red J
Member
5 years 13 days ago

But now everyone knows about the things to come. What Saab has disclosed here are the most important industrial secrets for a car company. Too bad the court forced Saab to do so, and did not admit the request for secrecy. 🙁

Anyhow, the rumours about a 50g NG9-3 are now no rumours any more. Volvo will be first to market (maybe) but if all this is solved, Saab could follow in a short time, and a big car company won’t have anything comparable at that time, and I’m not talking about GM.

Pedro
Member
5 years 13 days ago

Disagree regarding these being secrets. There’s nothing in there that isn’t already known: for me the unknowns there (besides the costing side) were the EREV and the ZF collaboration.

The smartness of what is written above is that it aims squarely at what the industry trends are: hybridization and eventual full electrification; environmental awareness (at least in the sense of taking emissions away from where the cars are driven); flexibility in engineering, manufacturing and reduction of lead times from design/engineering to production…

Red J
Member
5 years 13 days ago
Pedro, sorry but you are contradicting yourself. The EREV, and the goals Saab is wiling to achieve are very important secrets for Saab. Or do you know how the A4 hybrid, due in 2014 with the next generation of the car will perform? Or the i3/i8 from BMW? Nobody of the big ones wants to invest a cent too much, thus they will only undercut the latest model by some CO2 grams, Now they know that Saab is aiming at 50 g CO2, so now they know that they will have to aim at similar figures to not to look… Read more »
Pedro
Member
5 years 13 days ago

I missed that ZF press release. 😉

On the other subject… Just checked the Ampera’s ratings on Opel’s website: the car is rated at <40 g CO2 emissions and 1.6L/100KM average fuel consumption. That's where the bar is set (GM has earned 1st mover advantage on this) and every EREV will be aiming at beating that figure.

Pedro
Member
5 years 13 days ago

Yeah, I read that they’ll be cooperating. I think BMW’s interested in the drivetrain only, not the platform that GM uses which is basicall a modified Delta2 platform. BMW can do good FWD platforms, as the MINI shows.

And I think GM might at last return to DOHC engines in Cadillacs LOL

Tripod
Member
5 years 13 days ago
“Too bad the court forced Saab to do so, and did not admit the request for secrecy.” I agree. I don’t care one bit if the average Joe (sorry to all Joes out there) reading this blog, and demanding facts and info, doesn’t get what they want, all the time. If I wish the best outcome for a company then I don’t demand them to tell me and the public everything. I understand that is not what some has been asking for, just more info about this or that, but still. Apropos low emissions: in the future people will pull… Read more »
JerseySaab
Member
5 years 13 days ago
I’m happy to see things starting to look more hopeful, and that the company has definitive plans for moving forward. However I personally have say that I have no interest in electric or hybrid cars at least with the battery technology currently available. (As a used-car buyer the last thing I want to have to worry about is needing to replace a battery pack that costs thousands of dollars.) As far as emissions are concerned, the Trionic system in my old Saab 9000 when driven in a polluted area will have cleaner air coming out the exhaust than what goes… Read more »
Sadim
Member
5 years 13 days ago

Having read the appeal, I think SAAB made a pretty good case for allowing the reconstruction process to begin.

But the additional information about cashflow etc is still pretty shaky. I mean even Pangda and Y-man say what they have submitted is not to be seen as any sort of guarantee. But such “minor details” would be looked into by the reconstruction team in due course.

I would, however, be willing to put a little money on SAAB being allowed to go into 3 months of reconstruction.

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