Car Parts 2011

In my years of automotive enthusiasm, there's been a particular brand that I never understood. Saab isn't small or attractive enough to be considered prestige, nor is it large and popular enough to be considered mainstream.

Of course, I'm aware of the Saab 99's historical success in rallying. I'm also aware of the 99's design success that has carried on for decades, though I am not a fan. And finally, I'm aware of the Saab 900's cult following from diehard turbo Saab enthusiasts, although I'm indifferent.

I can only conclude all this to bad timing. Saab's darkest period under the ownership of GM, a decade of neglect from 1989 to 2010, started when I was only in day-care, presumably, and did not end until, well, just last year!

Some of you could well argue that I should theoretically share the same impression of Alfa Romeo then, as they've ended North American sales in 1995-- when I would be in the third grade. Well, apples and oranges and passion... and a quid in the Italian swear jar.

But let's bring the focus back to Saab. According to an article by Sam Knight of Financial Times, Albert Muniz, an Associate Professor of Marketing at Chicago's DePaul University, claimed that Saab owners possess a "Snaabery" cultivated from pre-GM Saab ownership, a Machead equivalent to the automotive world. Saab drivers allegedly flash their lights and tip their hats to other Saab drivers. A Saab driver also stops to help a stranded fellow Saab driver. Muniz further claims that no other group of car enthusiasts despise BMW more (I'd argue that award goes to Prius owners now). And moreover, a psychologist Rudiger Hossiep discovered that Saab drivers have the highest levels of "psychological involvement" with their cars: a claimed 10x that of Volkswagen enthusiasts.

gawker media

Clearly Saabs must be something special and that level of community can only be good for automotive enthusiasm as a whole and I, for one, would want to see that continue. But in light of its current condition, what is Saab now? The cars are a bit expensive for what it offers, they don't have a young buyer's market, they don't possess an "image," they're not especially sporting, nor especially luxurious and aren't known for dependability at all. They were innovators for safety, but safety is no longer an element of competitive edge, it's a modern vehicle requirement. And finally, any of its quirkiness has long gone since GM took over.



GM's plan to amputate Saab from their core operations were actually in motion a year before GM's own bankruptcy and restructuring. Then, after Saab spent a year under new Spyker ownership, who even sold the sports car operation to Coventry in efforts to provide Saab with undivided attention, Q1 efforts resulted to a $107Mil loss. Supplier relationship is also critically endangered, as outstanding debt to suppliers resulted to a plant shutdown that lasted for weeks.

This Monday, multiple publications reported that Saab secured a short term convertible loan of 30Mil Euros. Followed closely the day after, China's Huatai motors puts up 150Mil Euros for a significant 30% share of Saab. This can be a good investment for Huatai as their clean diesel project can certainly benefit from Saab's established small displacement turbo engine technology. Saab's international network can also help Huatai plan for global distribution. Otherwise, I doubt Saab's sales in China will be of any particular significance as Saab is an unfamiliar brand with little or no badge equity in the country and I'm afraid Huatai doesn't give a damn.

For all the Saab loyalists out there, it's been a great run for you guys and I'd rather matters didn't have to end this way. Perhaps the only way for Saab to rise from the ashes would be to use the new Chinese capital for aggressive and ambitious product development, a la Lotus's ambitious 5 model project and more recently Jaguar/Land Rover's ridiculous 40 model development plan. Hire a formidable design director, develop a radical chassis and power train, and find the best marketing agency conceivable... or to basically start from ground zero. As it is with "flight or flee" animal instinct, it is also important for a company to go all-in if it wants to survive. These days, delivering a "good" car is no longer good enough.