Tag Archives: retail outlets

Is The Saab Deal Complete Enough To Focus on The Next Generation Saab 9-5 Next Week At The Frankfurt Show?

Posted on 10. Sep, 2009 by .

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The question on everyone’s mind is that since there are still many unanswered questions with Saab Automobile & Koenigsegg, will that still detract from the next generation Saab 9-5 launch that takes place next Tuesday in Frankfurt?

While these unanswered questions don’t have to do with the financing of the deal anymore, they cover more operational details. These detailed questions involve areas, particularly here in the United States about what the new Saab Cars North America leadership & management team will look. Other areas include what the dealership network will look like, with attention to their lack of leasing, floor planning and new products, and lastly advertising, marketing, etc, etc. who’s doing it, what it will look like, etc.

Next week will be quite a huge event for Saab Automobile, so here’s hoping more details are forthcoming so that both the retail outlets can satisfy customers and ultimately, the media, can be fed the information they need in order to spend their time solely focused on this long awaited next generation Saab 9-5 sedan that was just launched online two weeks ago.

I for one, want this information to arrive as soon as possible because now I am fortunately able to attend the Frankfurt auto show. At the show, I want to spend my time learning about the car inside and out and what it will mean for Saab under the new era of Koenigsegg ownership.

This is what’s important for Saab, it’s their first new product in a long time, so we best hope for a celebration and a positive reaction to just about all of Saab-Koenigsegg’s presence in Frankfurt at the Saab stand.

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Saab History On The General Motors Business Plan

Posted on 18. Feb, 2009 by .

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The “public version” of the General Motors Business Plan submitted to the U.S. Treasury today at 6:00pm has been posted on GM’s website.

You can download this 117-page PDF document titled “”GM 2009 – 2014 Restructuring Plan”, clearly a summarized version in comparison to the 900+ page official document.

Please click here to download directly at this link.

One thing is clear, GM states that basically on March 31st, 2009, Saab Automobile AB has effectively 9-months to become a completely independent business entity before January 1st, 2010.

It basically looks like Saab Automobile AB needs to secure the loans, both the $400 Million Dollars from the Swedish Government in addition to the $600 Million Dollars that was recently applied for with the European Investment Bank before March 31st.

I guess that at this point, the Swedish Government should rest assured that their money should not be going to General Motors in Detroit, but those loans need to be specifically applied only to Saab Automobile AB in their home country and I hope that both Saab & Sweden ensure that they do.

For the next 9-months following these loans, Saab Automobile AB would to secure a buyer somewhere between March 31st and January 1st, 2010.

Here are the areas that I captured from this “public” version of the GM Business Plan for your reference, but again please feel free to download it yourself and search for “Saab” and you’ll see what I have below.

Saab is to be an independent business entity Jan. 1, 2010, which is 9 months from March 31st, 2009

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4.1 Competitive Product Mix and Cost Structure—General Motors Restructuring Plan calls for rationalizing vehicle sales and marketing operations in the United States through reducing brands, nameplates and retail outlets. This will help to concentrate product development resources on ―fewer, better‖ entries, and generate more competitive dealer
economics.

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Brands and Channels—The Company has committed to focus its resources primarily on its core brands: Chevrolet, Cadillac, Buick and GMC. Of the remaining brands, Pontiac—which is part of the Buick-Pontiac-GMC retail channel—will be a highly focused niche brand. Hummer and Saab, stand-alone retail channels and brands, are subject to ‗strategic reviews‘, including their potential sale. A Hummer sale or phase out decision will be made in Q1 2009, with final resolution expected for both no later than
2010. Saturn will remain in operation through the end of the planned lifecycle for all Saturn products (2010-2011). In the interim, should Saturn retailers as a group or other
investors present a plan that would allow a spin off or sale of Saturn Distribution Corporation (SDC), GM would be open to any such possibility. If a spin off or sale does
not occur, it is GM‘s intention to phase out the Saturn brand at the end of the current product lifecycle.

Provisions have been made in the pro-forma financial statements for all brand-related restructuring costs related to an assumed phase-out of the Saturn, Saab and Hummer
retail channels and brands, should a sale or spin-off prove unachievable.
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The impact of moving from six to three retail channels, and eight to four core brands will not only result
in structural costs savings in areas such as marketing and human resources, but will enable GM to achieve greater focus on core brands and channels. The Company believes
the ongoing effect of fewer brands to be limited in terms of unit sales, while improving profitability, as over 90% of the Company‘s U.S. aggregate contribution margin (revenue
less variable cost) is derived from core brands.

U.S. Market Share Assumptions

4. Chevy, Cadillac and Buick gain share due to future product plan as well as reduced competition from HUMMER, Saab, Saturn and Pontiac

Saturn, HUMMER and Saab have generated an average annual EBIT loss of $1.1 billion (E2)

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GM Strategically Reviews Saab Automobile Brand

Posted on 02. Dec, 2008 by .

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GM Will Immediately Undertake A Global Strategic Review Of The Saab brand. This title was posted today as part of GM’s plan for long-term viability plan. If you read it closely, it is exactly the same wording that took place just before they announced that GM’s hummer brand was for sale as well, some months ago.

The writing is on the wall for Saab Automobile as part of GM’s submission of their plan for long-term viability to the United States Congress for the “bridge loan”.

Let’s see how this review evolves from here on out, and why not review Saab, it’s only been almost 20 years since GM purchased them, good time now that they are in dire straights. This “review” should have taken place a long time ago, then again GM wasn’t looking to sell them, they were just looking to exploit Saab for engineering prowess and how Saab could benefit them, not vice versa. Now that the engineering has been exhausted and used up, and GM has no interested in investing in Saab for Saab’s sake, they are now looking to “review” them. We should have seen this all along.

Now that GM is “reviewing” Saab, Saab Automobile are responding by looking to the Swedish Government for financial support.

Let’s look at the timeline for Saab History sake:

SAAB (1947-1969), SAAB-SCANIA (1969-1989), GM (1989-2009), SWEDISH GOVERNMENT (2009 – ?) One Can Hope Saab is nationalized before GM cannibalizes them, right? 70% of Swede’s can’t wrong.

I am hopefull for a new owner that truly cares about the Saab brand and its future.

GM Submits Plan for Long-Term Viability to the U.S. Congress

* Reaffirms GM’s commitment to energy-saving vehicles and technologies
* Outlines the need for Federal bridge loans and line of credit
* Requests Federal board to oversee loans, assist with restructuring
* Aggressive plan details GM actions to support long-term success

WASHINGTON – General Motors Corp. today submitted a plan to use Federal bridge loans to create a leaner, more competitive company, one that is profitable and self-sustaining for the long term.

The plan, submitted in response to Congressional hearings in November, includes a detailed blueprint for a successful, sustainable General Motors. Building on a product renaissance and comprehensive restructuring that has been under way for several years, the plan calls for:
[…]

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