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.
RECONSTRUCTION CARRIED OUT BY THE COMPANY’S ACTIVITIES AS A
RESULTS OF THE FORMAL RECONSTRUCTION 2009
- 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.
EXAMPLES OF PLANNED RESTRUCTURING OF THE COMPANY
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.