solid155
23-09-03, 08:45 PM
(08:30 Sep. 23, 2003)
Saab believes huge losses are in the past; addition of 9-2, 9-7 in U.S. are key
By WIM OUDE WEERNINK | Automotive News Europe
FRANKFURT -- Saab Automobile AB's loss of 4.5 billion Swedish kronor (more than $500 million) in 2002 will not derail the company's mid-term recovery strategy.
Saab Automobile CEO Per Augustsson said the automaker's loss in 2003 will be much less.
"We wrote off all investments at once, including for the new Saab 9-3," Augustsson said.
He predicted it will take Saab less than five years to break even.
"We are ahead of our cost reduction plan," he said.
Saab's finances will be affected by Sweden's vote last week against adopting the euro, Communications Director Eric Geers said. The kronor is a more volatile currency than the euro, he noted.
As a result of the vote, Saab will continue to work with four currencies, leaving it vulnerable to monetary developments.
Augustsson said currency fluctuations hurt Saab's earnings, accounting for approximately $280 million worth of losses during the past two years.
Augustsson also disputed criticism from General Motors sources that platform synergies for the new Saab 9-3 were limited to 20 percent.
Saab led development of the platform, but the Opel Vectra that was part of the program was launched first.
"Platform sharing is more than just sharing the volume of components," Augustsson said. "Commonality of tooling for the Saab and Opel subframes is 95 percent."
As in years past, Saab's annual sales target is 200,000 units. Last year, global sales totaled 123,328 vehicles.
GM CEO Rick Wagoner thinks Saab is hampered by a lack of variety.
"Saab needs more products," Wagoner said.
Augustsson expects Saab's two new offerings to boost total sales.
In January, Saab will unveil the smaller, all-wheel-drive 9-2 at the Los Angeles and Detroit auto shows. The cars go on sale in the USA in May 2004.
In 2005, Saab will introduce the 9-7 sport-utility, which shares a platform with the Chevrolet TrailBlazer. The 9-7 will offer six-cylinder and V-8 engines.
"The 9-2 and 9-7 will add another 7,000 to 10,000 and 10,000 to 15,000 units to our future sales volume, respectively, and will help us to reach our 200,000 target volume," Augustsson said. "They will definitely generate profit."
Initially, the 9-2 and 9-7 are for the US market exclusively.
"But in their next model cycle, they come to Europe," Augustsson said.
GM will handle production of the 9-7, and affilliate Fuji Heavy Industries Ltd., maker of Subaru cars, will produce the 9-2.
The 9-2 and 9-7 will have carry- over body parts but remain individual, Saab design chief Michael Mauer said.
"If you didn't know these cars' origins, you wouldn't recognize the donor car at first sight," Mauer said. "It is much more than badge engineering. In particular, the front and rear end and the interior will have a unique Saab expression."
Mauer's influence on Saab's designs is increasing.
The designer, hired from Smart three years ago, is responsible for 70 percent of the work on the Saab 9-3 Sport-Hatch. The five-door car debuted at the IAA in Frankfurt as a concept and will go on sale in 2005.
Saab's 9-3 and 9-5 remain the company's core models. Saab plans additional versions.
It is also working on new diesel and gasoline engines.
"But these will be our developments on existing GM-sourced engine blocks," Augustsson said. "There won't be any unique Saab-developed engines any more."
Saab posted a large loss last year as it wrote off major investments, CEO Per Augustsson said.
Side Note:
Saab to build
SUVs in U.S.
To better handle currency fluctuations, General Motors will build Saabs for its crucial North American market in the U.S.
Changing exchange rates have cost Saab approximately $280 million during the past two years. The company works with dollars, euros, pounds and kronor.
Saab will counter its currency issue by producing its 9-7 sport-utility in the U.S. The 9-7 will not be the only Saab built outside of Europe. The company will produce its entry-level five-door 9-2 in Japan.
Both cars will only be sold in the U.S. during their initial model years.
GM CEO Rick Wagoner hasn't ruled out building even more Saabs in the U.S. specifically targeted to the North American market. He said he would like the brand to increase sales in the world's biggest car market. -Wim Oude Weernink
This article taken from:
http://www.autoweek.com/cat_content.mv?port_code=autoweek&cat_code=carnews&loc_code=index&content_code=01649408
Saab believes huge losses are in the past; addition of 9-2, 9-7 in U.S. are key
By WIM OUDE WEERNINK | Automotive News Europe
FRANKFURT -- Saab Automobile AB's loss of 4.5 billion Swedish kronor (more than $500 million) in 2002 will not derail the company's mid-term recovery strategy.
Saab Automobile CEO Per Augustsson said the automaker's loss in 2003 will be much less.
"We wrote off all investments at once, including for the new Saab 9-3," Augustsson said.
He predicted it will take Saab less than five years to break even.
"We are ahead of our cost reduction plan," he said.
Saab's finances will be affected by Sweden's vote last week against adopting the euro, Communications Director Eric Geers said. The kronor is a more volatile currency than the euro, he noted.
As a result of the vote, Saab will continue to work with four currencies, leaving it vulnerable to monetary developments.
Augustsson said currency fluctuations hurt Saab's earnings, accounting for approximately $280 million worth of losses during the past two years.
Augustsson also disputed criticism from General Motors sources that platform synergies for the new Saab 9-3 were limited to 20 percent.
Saab led development of the platform, but the Opel Vectra that was part of the program was launched first.
"Platform sharing is more than just sharing the volume of components," Augustsson said. "Commonality of tooling for the Saab and Opel subframes is 95 percent."
As in years past, Saab's annual sales target is 200,000 units. Last year, global sales totaled 123,328 vehicles.
GM CEO Rick Wagoner thinks Saab is hampered by a lack of variety.
"Saab needs more products," Wagoner said.
Augustsson expects Saab's two new offerings to boost total sales.
In January, Saab will unveil the smaller, all-wheel-drive 9-2 at the Los Angeles and Detroit auto shows. The cars go on sale in the USA in May 2004.
In 2005, Saab will introduce the 9-7 sport-utility, which shares a platform with the Chevrolet TrailBlazer. The 9-7 will offer six-cylinder and V-8 engines.
"The 9-2 and 9-7 will add another 7,000 to 10,000 and 10,000 to 15,000 units to our future sales volume, respectively, and will help us to reach our 200,000 target volume," Augustsson said. "They will definitely generate profit."
Initially, the 9-2 and 9-7 are for the US market exclusively.
"But in their next model cycle, they come to Europe," Augustsson said.
GM will handle production of the 9-7, and affilliate Fuji Heavy Industries Ltd., maker of Subaru cars, will produce the 9-2.
The 9-2 and 9-7 will have carry- over body parts but remain individual, Saab design chief Michael Mauer said.
"If you didn't know these cars' origins, you wouldn't recognize the donor car at first sight," Mauer said. "It is much more than badge engineering. In particular, the front and rear end and the interior will have a unique Saab expression."
Mauer's influence on Saab's designs is increasing.
The designer, hired from Smart three years ago, is responsible for 70 percent of the work on the Saab 9-3 Sport-Hatch. The five-door car debuted at the IAA in Frankfurt as a concept and will go on sale in 2005.
Saab's 9-3 and 9-5 remain the company's core models. Saab plans additional versions.
It is also working on new diesel and gasoline engines.
"But these will be our developments on existing GM-sourced engine blocks," Augustsson said. "There won't be any unique Saab-developed engines any more."
Saab posted a large loss last year as it wrote off major investments, CEO Per Augustsson said.
Side Note:
Saab to build
SUVs in U.S.
To better handle currency fluctuations, General Motors will build Saabs for its crucial North American market in the U.S.
Changing exchange rates have cost Saab approximately $280 million during the past two years. The company works with dollars, euros, pounds and kronor.
Saab will counter its currency issue by producing its 9-7 sport-utility in the U.S. The 9-7 will not be the only Saab built outside of Europe. The company will produce its entry-level five-door 9-2 in Japan.
Both cars will only be sold in the U.S. during their initial model years.
GM CEO Rick Wagoner hasn't ruled out building even more Saabs in the U.S. specifically targeted to the North American market. He said he would like the brand to increase sales in the world's biggest car market. -Wim Oude Weernink
This article taken from:
http://www.autoweek.com/cat_content.mv?port_code=autoweek&cat_code=carnews&loc_code=index&content_code=01649408