Saab 9-5 Biopower

By Alisa Priddle
Oct. 12, 2006

PARIS – Saab Autombile’s 9-5 BioPower flex-fuel vehicles, which are
proving hugely successful in Sweden and other parts of Europe,
“definitely” are destined for the North American market, says General
Motors Corp. Vice Chairman Bob Lutz.

Lutz, who oversees global product development, makes the promise in an
interview at the recent Paris auto show here, but does not provide
specifics on when the turbocharged vehicles that run on E85 (85 percent
ethanol/15 percent gasoline) will be available in the U.S.

The automaker could decide to debut E85 capability on the volume Saab 9-3
before the 9-5 for North America.

Saab introduced a 2.0t BioPower model of the 9-5 last year in Sweden,
followed this year by the Saab 9-5 2.3t BioPower performance sedan and
wagon for Scandinavia, the U.K. and Ireland, with other European countries
to follow.

Saab’s BioPower flex-fuel vehicles are proving a huge hit in Sweden, where
the 2L 9-5 quickly established itself as Sweden’s best-selling
environmentally friendly vehicle.

About 80 percent of 9-5s sold in Sweden use E85, and they are gaining
traction in other countries, says Carl-Peter Forster, president-General
Motors Europe.

The vehicles not only have fewer emissions using an ethanol blend, but the
BioPower versions of the turbocharged 2.0L and 2.3L engines have been
calibrated for 15 percent-20 percent more power when running on ethanol
compared with gasoline, he says.

Through September, Saab says it has sold 7,700 BioPower 9-5 models. The
automaker now forecasts sales of 10,000 this year, double its initial
projections.

Forster says the BioPower line is “exactly what we need for Saab,” and
perfect for its brand image.

The flex-fuel vehicles have helped boost total Saab sales in Europe 20
percent from last year, Forster says, with more growth projected as the
2.3L turbo BioPower engine rolls out in eight European countries with
reduced emissions and increased power.

The 9-5 BioPower is especially popular in Sweden where the government
gives a tax exemption for renewable fuels such as ethanol, biogas and
biodiesel.

“Clean” vehicles enjoy free residential parking, Forster says, and
government also has mandated any service station above a certain size
(based on volume sold) must provide a renewable fuel, so there are many
E85 pumps, resulting in a good distribution network for the fuel.

The flexible-fuel infrastructure is growing in the U.S., albeit slowly.
And Saab could use a sales hit.

Sales through September are down 14.2 percent vs. year ago, despite an
expanded lineup with the addition of 9-3 and 9-5 SportCombi wagons this
year and introduction of the 9-7X SUV last summer.

While Lutz enthuses over the potential of E85, he is much less effusive on
the future of diesels for the U.S., given the need to meet Bin 5
requirements for emissions next year that he describes as “six times” more
stringent than Euro 5 regulations.

He also bemoans the loss of fuel economy from after-treatment measures to
reduce particulate matter and oxides of nitrogen.

Cost remains an obstacle, adding another $2,000 to the already high
premium for a diesel engine. “So it is double to triple the cost of
today’s cars,” Lutz says, making it all but impossible to break even at
today’s diesel prices.

And it will only get worse, he says, because “California hates the word
‘diesel.’” The state already is looking beyond Bin 5 to even stricter
requirements, “which would regulate diesels out of existence (in the
U.S.).”

If diesels get so expensive as to rival hybrid-electric systems, “you hit
equilibrium,” Lutz says, raising the question of “which do I do?”

On a more positive note, “I think we’re going to see a huge diversity of
powertrains,” in the future, Lutz says, allowing automakers to select the
proper one for each application.

Big commercial trucks universally opt for diesels, he says. When hybrids
are less expensive, large urban areas where people drive less than 50
miles (80 km) a day could be havens for hybrids or plug-in hybrids.