Saab was not just a car manufacturer. It was a symbol of Swedish innovation, engineering, and design. It was a brand that inspired loyalty and passion among its customers and fans. It was a story of success, struggle, and survival in the competitive and changing automotive industry. But how did Saab go from being a world-renowned maker of aircrafts and cars to a bankrupt company that lost its identity and legacy? This article will explore the history, achievements, challenges, and demise of Saab Automobile, one of the most iconic and beloved car brands in the world.
From Planes to Cars: The Birth of Saab Automobile
Saab’s story began in 1937, when Svenska Aeroplan
Aktiebolaget (Swedish Aeroplane Limited), or Saab, was founded as a state-owned
company to produce military aircrafts for the Swedish Air Force. Saab quickly
gained a reputation for building innovative, reliable, and efficient planes
that could withstand the harsh Nordic climate and terrain. Some of its most
famous aircrafts include the Saab 17, the Saab 18, the Saab 21, the Saab 29
Tunnan, the Saab 32 Lansen, the Saab 35 Draken, the Saab 37 Viggen, and the
Saab 39 Gripen.
However, after World War II, Saab faced a decline in demand
for military aircrafts and decided to diversify its business by entering the
automotive market. In 1945, Saab started a project to design a small,
economical, and practical car that would appeal to the Swedish public. The
result was the Saab 92, which was launched in 1949 as the first production
model of Saab Automobile. The Saab 92 was a unique car that featured a
streamlined aerodynamic body, a two-stroke engine, front-wheel drive,
independent suspension, and a safety cage. It was also very durable and easy to
repair, making it suitable for the rough roads and weather conditions of
Sweden.
The Saab 92 was well received by the customers and critics
alike, and soon became a popular choice among rally drivers for its performance
and handling. Saab continued to develop and improve its cars over the years,
introducing new models such as the Saab 93, the Saab 95, the Saab 96, and the
Saab Sonett. These cars showcased Saab’s innovative spirit and engineering
excellence, as well as its distinctive style and character. Some of the
features that made Saab cars stand out from the crowd include:
- The wraparound windshield that offered better visibility and safety
- The ignition switch located on the floor between the front seats that prevented theft and accidental knee bumping
- The turbocharged engine that boosted power and fuel efficiency
- The heated seats that provided comfort in cold weather
- The hatchback design that offered more cargo space and versatility
- The headlamp wipers that improved visibility in rain and snow
- The black panel dashboard that reduced glare and distraction at night
- The active head restraints that reduced whiplash injuries in rear-end collisions
- The night panel button that dimmed all dashboard lights except for the speedometer
Saab’s cars also reflected its aviation heritage and
influence, as seen in its logo, its slogan “Born from Jets”, its cockpit-like
interiors, its instrument panels, its aerodynamic shapes, and its high-performance
engines.
From Independence to Dependence: The Decline of Saab
Automobile
Saab’s success in the automotive industry attracted the
attention of other car manufacturers who saw potential in acquiring or
partnering with the Swedish company. In 1968, Saab merged with Scania-Vabis, a
Swedish truck maker, forming Saab-Scania AB. This merger gave Saab access to
more resources and markets, but also increased its competition and complexity.
In 1978, Saab launched its best-selling model ever: the Saab 900. The Saab 900
was a compact luxury car that combined style, quality, comfort, and safety. The
Saab 900 was followed by the Saab 9000 in 1984, which was a larger and more
luxurious car that competed with other premium brands.
However, despite the popularity and acclaim of these models,
Saab faced financial difficulties in the late 1980s and early 1990s, due to
high production costs, low sales volumes, and currency fluctuations. Saab
needed a partner that could provide more capital, technology, and market
access. In 1990, General Motors (GM) acquired 50% of Saab Automobile for $600
million, with an option to buy the remaining shares later. GM hoped to benefit
from Saab’s image, innovation, and engineering expertise, while Saab hoped to
gain from GM’s scale, resources, and global presence.
However, the partnership between GM and Saab proved to be
problematic and unsuccessful for both parties. GM tried to integrate Saab into
its global operations and platforms, but this resulted in a loss of Saab’s
identity, uniqueness, and quality. GM also failed to invest enough in Saab’s
product development and marketing, leaving Saab with an aging and shrinking
product portfolio that could not compete with other rivals. GM also restricted
Saab’s strategic options and partnerships, such as its potential alliances with
Fiat or Subaru. Saab’s sales and profits declined steadily under GM’s
ownership, reaching a record loss of $386 million in 2008.
In 2000, GM exercised its option to buy the remaining 50% of
Saab Automobile for $125 million, making it a fully owned subsidiary. However,
GM soon realized that Saab was a burden rather than an asset, especially after
the global financial crisis hit the automotive industry hard in 2008. GM
decided to sell or close down Saab as part of its restructuring plan to avoid bankruptcy.
GM received several bids from various parties interested in buying Saab,
including Koenigsegg Group, Renco Group, Merbanco Inc., Beijing Automotive
Industry Holding Co., and Spyker Cars N.V.
From Hope to Despair: The End of Saab Automobile
In 2010, GM agreed to sell Saab Automobile to Spyker Cars
N.V., a Dutch sports car maker, for $74 million in cash and $326 million in
preferred shares. Spyker was a small and niche company that had no experience
in mass production or managing a global brand like Saab. However, Spyker’s CEO
and founder Victor Muller was an avid fan and admirer of Saab, and he had a
vision to revive and restore Saab’s glory and independence. Muller also secured
a loan from the European Investment Bank (EIB), guaranteed by the Swedish
government, to finance the deal and support Saab’s operations.
However, Spyker’s takeover of Saab did not solve the
problems that plagued the Swedish company. In fact, it only added more
challenges and complications. Spyker faced difficulties in repaying the EIB
loan and meeting the conditions imposed by GM and the Swedish government.
Spyker also struggled to find new investors and partners that could provide
more funding and technology for Saab’s future products. Spyker also had to deal
with lawsuits from former suppliers and dealers who claimed unpaid debts from
Saab.
Saab’s production was halted several times in 2011 due to
cash flow problems and disputes with suppliers who refused to deliver parts
until they were paid. Saab also faced declining sales and customer confidence
due to its uncertain future and lack of new models. Saab tried to raise funds
by selling its assets or entering into agreements with various parties, such as
Pang Da Automobile Trade Co., Zhejiang Youngman Lotus Automobile Co., Hawtai
Motor Group Co., Vladimir Antonov (a former Spyker shareholder), Turkish
private equity firm Brightwell Holdings BV., Indian car maker Mahindra &
Mahindra Ltd., Chinese car maker Great Wall Motor Co., etc.
However, none of these deals materialized or were completed
due to various reasons, such as regulatory hurdles, contractual disputes, or
GM’s veto. GM blocked several attempts by Spyker to sell or partner with
Chinese companies, citing concerns over the transfer of technology and
production rights that could harm its own interests in China. GM also stated
that it would stop supplying engines, transmissions, and vehicles to Saab if it
was sold to a Chinese company.
In December 2011, after exhausting all options and failing
to secure any viable solution, Spyker filed for bankruptcy protection for Saab
Automobile, ending its 64-year history as a car maker. Saab’s assets were put
up for sale by the administrators, who received several bids from various
parties, including NEVS (National Electric Vehicle Sweden), a consortium of
Chinese and Japanese investors.
From Bankruptcy to Resurrection: The New Life of Saab
Automobile
In 2012, NEVS acquired the main assets of Saab Automobile, including the factory, the brand name, and the rights to the 9-3 and Phoenix platforms. NEVS’s vision was to transform Saab into a leading manufacturer of electric vehicles, leveraging its engineering expertise, design heritage, and environmental values. NEVS also planned to focus on the Chinese market, where the demand for electric vehicles was growing rapidly.
In 2013, NEVS restarted the production of the Saab 9-3 Aero
sedan, powered by a turbocharged gasoline engine supplied by GM. The car was
mainly sold in Sweden and China, where NEVS had established a partnership with
Pang Da Automobile Trade Co., one of the largest car distributors in the
country. NEVS also unveiled its first electric vehicle prototype, based on the
Saab 9-3 platform, which was expected to enter production in 2014.
However, NEVS faced similar challenges and difficulties as
its predecessors. NEVS had trouble securing enough financing and fulfilling its
obligations to the EIB and the Swedish government. NEVS also had conflicts with
its Chinese partners, who failed to deliver on their promises and commitments.
NEVS also lost the right to use the Saab name and logo, which were owned by
Saab AB, the aerospace company that had spun off Saab Automobile in 1990. Saab
AB revoked its license to NEVS after it failed to pay its royalties and meet
its quality standards.
NEVS’s production was halted again in 2014 due to cash flow
problems and disputes with suppliers. NEVS applied for reorganization and
sought new investors and partners to rescue the company. NEVS received several
offers from various parties, including Mahindra & Mahindra Ltd., Dongfeng
Motor Corporation, Renault-Nissan Alliance, Volvo Cars, etc.
In 2015, NEVS announced that it had reached an agreement
with two Chinese companies: Tianjin Binhai Hi-tech Industrial Development Area
(THT) and Beijing State Research Information Technology Co., Ltd. (SRIT). THT
agreed to invest $230 million in NEVS and provide land and infrastructure for a
new factory in Tianjin, China. SRIT agreed to invest $150 million in NEVS and
provide software and IT solutions for electric vehicles. NEVS also announced
that it had secured a contract to supply 150,000 electric vehicles to Panda New
Energy Co., Ltd., a Chinese leasing company.
In 2016, NEVS exited reorganization and resumed its
operations. NEVS also announced that it had acquired a majority stake in New
Long Ma (NLM), a Chinese manufacturer of mini commercial vehicles. NEVS planned
to use NLM’s factory in Fujian, China, to produce electric vehicles based on
the Saab 9-3 platform.
In 2017, NEVS launched its first electric vehicle under its
own brand name: the NEVS 9-3 EV. The car was based on the Saab 9-3 platform but
featured a new design, a new battery system, and a new infotainment system. The
car was initially sold only in China, where it received over 20,000 orders
within days of its launch. NEVS also announced that it had developed a new
electric vehicle platform called Sango, which would support various types of
vehicles such as sedans, SUVs, crossovers, etc.
In 2018, NEVS started the construction of its new factory in
Tianjin, China, which would have an annual capacity of 200,000 electric
vehicles. NEVS also announced that it had formed a strategic partnership with
DiDi Chuxing, the largest ride-hailing platform in China. NEVS agreed to
provide DiDi with electric vehicles and mobility solutions for its network of
drivers and users.
In 2019, NEVS unveiled its second electric vehicle under its
own brand name: the NEVS 9-3X EV. The car was based on the Sango platform but
featured a crossover design inspired by the Saab 9-3X concept from 2002. The
car was also sold only in China, where it competed with other domestic and
foreign electric vehicle brands.
In 2020, NEVS announced that it had acquired a 20% stake in
Koenigsegg Automotive AB, a Swedish supercar maker, for $170 million. NEVS also
announced that it had formed a joint venture with Koenigsegg to develop and
produce new electric vehicles for the global market. NEVS also announced that
it had received a strategic investment from Evergrande Group, a Chinese
conglomerate, which became its largest shareholder with a 51% stake. Evergrande
Group also owned other electric vehicle companies, such as Faraday Future and
Hengchi.
In 2021, NEVS revealed its latest electric vehicle under its
own brand name: the NEVS Emily GT. The car was a futuristic electric sports
sedan that was built from scratch by former Saab engineers in Trollhättan. The
car featured four in-wheel electric motors that delivered 424 horsepower, a 174
kWh battery that offered over 600 miles of range, and a sleek and aerodynamic
design inspired by the Saab Aero X concept from 2006. The car was also equipped
with advanced technologies, such as torque vectoring, adaptive suspension,
digital cockpit, and wireless charging. The car was intended to showcase NEVS’s
innovation and engineering capabilities, as well as its ambition to become a
leader in the electric vehicle industry.
Conclusion
Saab Automobile was a Swedish car legend that had a rich and
remarkable history of innovation, engineering, and design. Saab’s cars were
known for their distinctive style, character, and performance, as well as their
high standards of safety and quality. Saab’s cars also reflected its aviation
heritage and influence, which gave them a unique edge and appeal.
However, Saab Automobile also faced many challenges and
difficulties throughout its existence, such as financial troubles, market
changes, ownership transitions, strategic conflicts, and competitive pressures.
Saab Automobile ultimately went bankrupt in 2011, after failing to find a
viable solution or partner that could save it from its crisis.
Saab Automobile’s assets were acquired by NEVS in 2012,
which aimed to transform Saab into a leading manufacturer of electric vehicles.
NEVS faced similar challenges and difficulties as Saab Automobile, but also
managed to overcome some of them and achieve some successes. NEVS launched
several electric vehicles under its own brand name, as well as formed
partnerships and joint ventures with other companies in the electric vehicle
industry. NEVS also developed the NEVS Emily GT, a futuristic electric sports
sedan that was built from scratch by former Saab engineers in Trollhättan.
Saab Automobile may be gone, but its legacy lives on in NEVS
and its products. NEVS has shown that it is possible to revive and restore
Saab’s glory and independence, as well as to innovate and compete in the new
wave of technology revolution in the automotive industry. NEVS has also shown
that it is possible to pursue high-quality and sustainable development, while
respecting Saab’s heritage and values.
Saab Automobile was a Swedish car legend that rose and fell
in the competitive and changing automotive industry. NEVS is a Swedish electric
car company that hopes to rise and shine in the new era of electric mobility.
Whether NEVS will succeed or fail remains to be seen, but one thing is certain:
Saab’s story is not over yet.
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