February 2005

Saab this spring will add its first SUV, the 9-7X, which is also the Swedish automaker's first vehicle built in North America.

The Swedish car maker will introduce a seven-seat crossover vehicle, and also plans to take full advantage of its relationship with the world's biggest car company by sharing more vehicle platforms and assembly plants, said Debra Kelly-Ennis, president and chief operating officer of Saab Cars U.S.A.
"This opportunity presents the best asset that we have for meeting our growth imperative," Kelly-Ennis said at the Automotive News World Congress. She is hoping Saab will sell 40,000 vehicles in the United States this year, compared with slightly more than 38,000 in 2004. The latest sales figures represent a 20.4 percent drop from 2003, according to Autodata Corp.

Long known for its solid quality, quirky but beloved design and its limited product line, Saab can no longer live in such an isolated bubble. The entry luxury category has become one of the hottest product segments, with competitors such as Volvo, Audi and Acura offering more choices at similar prices.
"We are literally the David in an industry of Goliaths," Kelly-Ennis said.

GM purchased a 50 percent stake in Saab in 1990, forming Saab Automobile AB, and took full control in 2000. Under GM, Saab has remained a respected brand. But it also remains unprofitable. Kelly-Ennis would not predict if or when Saab would start paying off for the automaker, but said the right things are being done to turn Saab from a drain to a contributor.
"If you're going to succeed and be a positive contributor, you have to be in more segments ... and you have to refresh (the products) more often," she said. "Now that the ownership is complete, product portfolio and investment has moved to the forefront."

Faced with shrinking profits from its core automotive business, GM is taking a serious look at Saab.
"What we have to do to make it successful is what we're spending our time on," Fritz Henderson, chairman of GM Europe, said in an interview at the North American International Auto Show in Detroit. "We're asking ourselves a lot of hard questions of how to get this done."

Kelly-Ennis wants to move from what she called the "base camp," where the brand is today, to the Saab "summit" — a strong global brand with strong sales. An expansion of Saab's model line is under way and the brand is in the midst of what Kelly-Ennis called the "most aggressive product program in its history."

It began with the 2003 Saab 9-3 sport sedan and convertible and continued last year with Saab's first collaborative vehicle — the 9-2X sport wagon, built on the same basic structure as the Subaru Impreza. Critics have derided the car as a "Saabaru." This spring, Saab will add its first sport utility vehicle, the 9-7X, which represents another milestone for the Swedish automaker — its first vehicle built in North America. The 9-7X will be assembled in Moraine, Ohio, at the same factory churning out the Chevrolet TrailBlazer and GMC Envoy — all evidence of the closer relationship between the once-independent brand and the Detroit mother ship.

Making its debut at the Geneva Auto Show in March will be a hatchback version of the 9-3 called the SportCombi, along with a 9-3 powered by a 250 horsepower, turbocharged V-6 engine. More details will be revealed in the fall regarding a seven-passenger crossover vehicle based on the Subaru B9 Tribeca. Saab also has plans to refresh its flagship 9-5 sedan and sport wagon, too.

Using GM and Subaru vehicle platforms to produce new Saab products makes good business sense, says Joseph Barker, a product analyst with Farmington Hills consultants CSM Worldwide. But customers haven't been fooled by the 9-2X's bloodlines with the Subaru Impreza, resulting in sluggish sales. The 9-7X, Barker says, just looks too similar to the TrailBlazer and Envoy. "Saab's mission is to conquest import buyers," Barket said. "Brand engineering could weaken its lure."

Southfield, Mich., Saab dealer George Glassman said the new products may attract new customers, but concedes he may lose some, too. "There's no question the shared architectures will alienate Saab purists," Glassman said. "The only danger is if you're going to do that, the brand has to remain distinctive, but I'm enthused about the seven-passenger vehicle."

Kelly-Ennis insists the brand must not only broaden its product line but expand vehicle manufacturing beyond Sweden to offset unfavorable currency exchange rates. This year Saab vehicles are being produced in Sweden, Austria, Japan and the United States.

The brand will launch an aggressive advertising campaign beginning on Valentine's Day that extols its appeal to independent-minded buyers. It will feature catchphrases such as, "For those who consider conformity a serious road hazard," and "Engineered to protect you from the middle of the road."

Most of Saab's 250 U.S. dealers have already upgraded or plan to upgrade their facilities with a more modern design. Saab dealer Irma Elder believes in the strategy and is optimistic the brand will ultimately survive. "Saab has got a good product," said Elder, owner of Saab of Troy, the nation's biggest Saab dealership. "It fell on hard times, it didn't have the array of products other lines had, but now it is getting products and Saab is here to stay."

"Saab is here to stay."

Saab 9-3

Besides its long-anticipated 9-3 Sport Kombi hatch-estate, Saab is to launch powerful V6 9-3 Aero models at the Geneva Motor Show in March. The all-new 2.8-litre V6, sourced from GM's Australian division Holden, has been developed by Saab to give 250bhp thanks to a single asymmetric turbocharger, which will be specific to the Saab models using this engine. We can expect to see the engine, albeit in different states of tune and probably with twin-turbo aspiration, in other GM and GM-affiliate models, such as the upcoming Alfa Romeo 157 and GTV amongst others. It makes its debut in the 9-3 range first, however, and will be offered in the Sport Saloon, Kombi and Convertible versions in combination with Aero specification; the current 210bhp Aero models will continue. The V6 models will be visually identified only by their badging and twin exhaust tailpipes, though they will also receive minor modifications to their suspension and upgrades to their ESP and traction control systems, including the addition of a hill start aid to prevent rolling backwards in both the six-speed manual-transmission and auto versions. The V6 engine will not, however, be fitted in the current 9-5 range, though it will probably feature in the all-new replacement line-up, still said to be a good two and a half or three years off after Alfa Romeo pulled out of the joint platform development program. In the meantime, Saab is to revise the current 9-5 this summer; the new-look models will be launched at the Frankfurt Motor Show in September, and will feature redesigned front and rear ends and an updated interior - only the doors, roof and windows are said to be the same. The 2.2-litre TiD diesel engines will be replaced by the 150bhp 1.9 TiD 16v unit already offered in the 9-3 (and also used in the Vectra, Signum and Alfa 156) though the 3.0 V6 TiD will continue. The 120bhp 8-valve version of the 1.9 may follow if Saab considers that there is enough demand, but this hasn't yet been confirmed.

Further down the line, a more powerful version of the 1.9 TiD unit is also under development; fellow GM brand Vauxhall are said to be looking at an output of around 180bhp for some of its models, and this up rated version is likely to make it into the Saab range - including the 9-3 Cabriolet, marking the debut of a diesel engine in this model. Eco-friendly Saab enthusiasts will be interested in the 9-5 Bio-power, too: a model which can run on both petrol and organically-sourced ethanol, a clean-burning fuel gaining popularity across Europe. This goes on sale in Sweden next month, where it will benefit from tax breaks, exemptions from congestion charging and even qualify for free parking, and Saab is considering introducing it to the UK, although ethanol suppliers are thin on the ground as yet. More details of the new 2.8 V6 and the 9-3 Sport Kombi will be revealed nearer to their Geneva unveiling, including the final decision on the name of the five-door Kombi for the UK. This was to have been called Sport Hatch, until Vauxhall took the name for its three-door Astra; whilst Kombi is likely to remain its name in Scandinavia and some other Continental markets, it is thought to be an unfamiliar term for British buyers. Whatever it's called, the Kombi is expected to attract a number of new buyers to the Saab range as well as satisfying existing owners of five-door old-shape 9-3s and 900s, who had no immediate replacement for their hatches. So far, the 9-3 saloon has appealed to a high number of 'conquest' customers new to Saab, many trading in BMW 3-Series and Audi A4 saloons in favor of something a little more unusual, and the Kombi is expected to draw in the Touring and Avant crowd as well. 2005 also brings the launch of the 9-6X, twin to the Subaru B9X Tribeca 4x4-crossover, though so far this has only been confirmed for America; it will go on sale either very late this year or in early 2006. However, Saab engineers in Sweden are said to be studying whether the car could be modified for Europe and whether it is feasible to produce a diesel-engined version or less thirsty petrol versions. Saab is also waiting to gauge the success in Europe of similarly-themed models such as the Nissan Murano and Mitsubishi Outlander (both also offered only with high-powered petrol engines). We are unlikely to see official imports of the 9-2X "Saabaru", though.

GM review poses threat of closure to Saab

By James Mackintosh in Detroit

Published: January 10 2005

A General Motors review of its Saab subsidiary could lead to the up market car brand being axed, if the heavy investment required to revive it is deemed unjustified. GM executives and people familiar with the study said there was only an outside chance that the Swedish marque would be killed off by the review, due to be completed within three months. But even a remote threat of the company being closed is likely to prompt a political storm in Sweden, where the automotive industry is one of the most important employers.

Goran Persson, prime minister, has already visited Zurich, where GM's European headquarters is based, to offer significant investment in the region around Saab's Trollhättan factory if it is given more production. GM added two new models to the Saab line-up last year in what executives said was a "quick and dirty fix" to improve sales. But Rick Wagoner, GM chairman and chief executive, admitted on Sunday that the new 9-2X small Saab, based on a car from Subaru, GM's Japanese affiliate, had not met sales targets after a botched US launch. John Devine, GM's chief financial officer, said in an interview on Monday that the Saab brand "still has attraction." "It does have a future but how big and what role it plays are what we are looking at right now," he said. One big question, he added, was "how to take the currency risk out of manufacturing." That comment is likely to increase concerns about the future of the Swedish factory, which has been badly hurt by the strength of the Swedish Krona."

According to GM insiders, the company remains unclear what the Saab brand stands for. The typical customer is an academic - and, says one executive, "the question is, are there enough university professors to make the investments worthwhile?"

Saab has lost money in all but one of the past 10 years and GM has steadily reduced its autonomy over the past 18 months. Manufacturing, engineering and most design decisions are now controlled by GM Europe executives, based in Germany or Switzerland, reducing Saab's local management to controlling branding and marketing. The review coincides with a decision on whether to build GM's new Opel Vectra saloon and the replacement for the Saab 9-3, both due in 2007, at Saab's Trollhättan factory. Trade unions have warned that if production is moved to Opel's Rüsselsheim plant, which has also bid for the work, then Trollhättan is likely to close, although GM denies this. The Saab plant employs 6,000 workers. Trollhättan was given a boost this week by the news that it will build the small Cadillac aimed at Europe, but the car, based on the existing Saab 9-3, will not sell enough units on its own to justify keeping the factory open.

A manufacturing problem in thousands of cars that can lead to catastrophic engine failures has been discovered. "It is a serious problem but we are going to reimburse those owners affected by it" says chief of information, Örjan Åslund.

The problem has been noticed in the 9-5 and early 9-3 turbo charged engines. It’s been about 100,000 of those models sold in Sweden and roughly 3-4000 of them have this problem. The insurance company, Trygg-Hansa, says they will not pay for engine damage due a clause that frees them of responsibility if it is a manufacturing problem from the car maker. Saab promises to repair the cars of those affected now that the problem is observed. It’s a serious problem and it is going to be costly but we are going to see to it that all owners are going to be helped. "I cannot, at this point, say what the deal looks like, but I think it will be met by positive response as it is very generous" says Örjan Åslund, chief of information Saab Sweden.

Engine problems are normally covered under a factory warranty and owners can usually sign up on an extended warranty after 5-8 years and cars with less than 100000 Km. But in the Trygg Hansa insurance folder, it states that engine problems due to manufacturing defects are not covered, and because of that the insurance company has stopped reimbursing their clients for engine problems on those particular Saab models. Trygg Hansa says that 37 out of every 1000 Saab owners are affected by this problem. That is 7 times more than on the average car model. Even the insurance company Folksam is aware of the problem and is having discussions with Saab.

Örjan Åslund admits that Saab has known about the problem, but delayed to inform the customers due to the fact that the cause has not been known. As for Trygg Hansa, they say that it is due to fabrication problems on those engine models, and it damaged the oil quality. The tip for worried car owners is to check the oil on a regular basis, and change it more often. Örjan Åslund also states that it has a greater affect on cars that are driven slowly, and cars driven short distances per start up, combined with cold climate. Clunking noise in the engine is an indication of the problem. Saab is not going to start a recall, but each car owner is urged to contact the Saab dealer.

-February 3, Thursday, Minnesota SAAB Club meeting at the Backyard Bar and Grill. Located at the south end of the Har-Mar Mall in Roseville, MN, at 7:30 P.M. Rally car and classic 900 wiper repair for the program.

-February 6, Sunday, Quattro Club timed ice racing on Lake Cynthia, Prior Lake, MN. Registration opens at 8:15 A.M. Open driving until noon, and timed events to be follwed by dinner at The Minnesota Horse and Hunt Club.

-March 3, Thursday, Minnesota SAAB Club meeting at the Backyard Bar and Grill. Located at the south end of the Har-Mar Mall in Roseville, MN, at 7:30 P.M. Brian Berkey slide show as program.

-March, ??, SAAB Car Wash, lunch, and tech session. Place and time yet to be determined.

-April 7, Thursday, Minnesota SAAB Club meeting at the Backyard Bar and Grill. Located at the south end of the Har-Mar Mall in Roseville, MN, at 7:30 P.M. Jim Miller from Twin City Tire speaks for program.

-April 16, Saturday, Minnesota SAAB Club Adopt-a-highway clean-up and breakfast at Little Oscar's Restaurant in Hampton, MN. Breakfast begins at 8:00, followed by the highway cleanup at the Park and Ride at 9:00.

-May 5, Thursday, Minnesota SAAB Club meeting at the Backyard Bar and Grill. Located at the south end of the Har-Mar Mall in Roseville, MN, at 7:30 P.M. Tom Graham from State Farm Insurance to speak for program.

-May 22, Sunday, Intermarque 2005 Spring Kick-off, car show and banquet. Located at the Radisson Hotel and Convention Center in Plymouth, MN.

-September 10, Wheels an Wings Auto and Aviation Show, Osceola, WI, presented by Classic Motorbooks.

Andrews of Princeton is now offering rust-repair sections for our now-classic 1979-'93 900s! Check out Andrews' website by going to the auto body section, click on "restorations", find the entry called "repairing 900 frames", and you can review the procedures. They thoroughly clean off all the old undercoating, and tap on the entire frame to break loose all the rust. Then they grind it all down to bare metal, and weld in the new repair panels. After that, they grind down all the welds, and re-rust proof the under carriage. The cost for a complete frame restoration usually runs anywhere from $750.00 - $1000.00. Check it out at www.andrewsofprinceton.com, or call Andrews directly by dialing 1-800-882-7220 to discuss details. You can also email Harly, the body shop manager, at harly@andrewsofprinceton.com.

You can save up to $1,500 on the purchase of a new SAAB if you already own one! SAAB loyalty has rewards beyond the sheer joy of owning one. Additionally, you can save $750 on the lease of a new SAAB. Check all the details and the latest inventory at www.meyersaab.com, or call Marty or Annette at 1-888-722-2246 to set up a test drive. Remember, the new 9-7X won't be here until May. . . .

Ice Driving at Lake Cynthia, Prior Lake!

Sunday, February 6th, 2005

Registration opens at 8:15 AM

Practice Laps from 9:00AM - 1:00PM

Timed Laps from 1:00PM till about 4:00PM

Additional driving exercises (Skid Pad, Island Slalom, etc.) will be available throughout the day.

Cost: $45.00 Per Driver (Payable by check or cash at the lake)

Helmets are required for all drivers and passengers.

Preference will be given to Audi Club of North America members.

Bring your own drinks and lunch, since there are no fast food restaurants close by.

We will gather at the Minnesota Horse and Hunt Club for drinks and awards afterwards.

Register Now

For additional information, email Keith Anderson or Mark Sampson.

Click on the map below for a larger printable map. We will be using the lake entrance which is almost directly across the road from the '1955' mailbox right in front of the houses on the West side of the lake. It is exactly 0.8 miles west of the intersection with the 81. We will place a couple of cones roadside to mark it.