- Saab built just 130 cars and sold only 2,775 cars globally in the third quarter, according to a third-quarter report that raises doubts about its long-term viability.
- Saab said it has been unable to provide dealers and customers with the cars they have ordered and that stock levels around the globe continue to fall.
- Saab parent Swan said it "foresees a substantial net loss for 2011."
ZEEWOLDE, The Netherlands — Saab issued a depressing third-quarter report on Wednesday, raising doubts about its ability to survive in the long term.
"From an operational point of view, the third quarter has been very tough" said Victor Muller, Saab CEO in a statement. The company reported revenue of $101.3 million during the quarter and a net loss, before interest and taxes, of $116.9 million.
Saab built just 130 cars in the third quarter, compared to 9,777 in the same period in 2010 — a decrease of 99 percent. It sold only 2,775 cars in the third quarter, compared to 7,430 in the same period in 2010 — a decrease of 63 percent. Saab's Trollhattan plant was "basically not in operation throughout the whole reporting period," the report noted.
Saab said it has been unable to provide dealers and customers with the cars they have ordered and that stock levels around the globe continue to fall.
The company is in the middle of a voluntary reorganization process under Swedish law. But the report said it has yet to finalize agreements with its Chinese would-be white knights — Zhejiang Youngman Lotus Automobile Co. Ltd. and Pang Da Automobile Trade Company Ltd.
"With regards to the future of Swan, we still face much uncertainty in completing a transaction to structure the investments by Youngman and Pang Da, either through the sale of Saab Automobile and Spyker, or alternative structures which can secure the necessary approvals," Muller said. "If we manage to finalize such transaction, we will consider all options for the company, including an orderly wind-down."
Saab parent Swan said it "foresees a substantial net loss for 2011."
"If (parent) Swan is not able to complete a sale of Saab Automobile or otherwise secure further financing for Saab Automobile and/or Swan, management will likely not be able to safeguard the continuity of Saab Automobile, which may result in the bankruptcy of Saab Automobile," said the outlook portion of Saab's third-quarter report.
Inside Line says: Muller's comment about a "very tough" third quarter seems like the ultimate understatement.
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tbone85 says:
03:26 AM, 12/05/2011
Open Eyes, you are a one note singer--and your pitch is poor. Car companies are businesses who produce products to make money. Some are successful and others are not. A few customers care only about gas mileage, but most others have a number of needs/wants that they are looking to fulfill. You can rail all day about Saab purity and other such nonsense, but they never set the world on fire in terms of sales. They could not attract enough new customers during any time in the last 3 decades to grow the business.
The 9-3 Sedan is a mess of space management. I'm a fairly standard size person, only slightly tall at 6'0. Neither the 900 nor 9-3 were ever full size class vehicles, they were compacts. The 900 had pretty good utility. The 9-3 had very poor room in the front and back passenger compartments compared to the other compact sedans I drove--which had no problem handling my family. Truth is truth. Just because it doesn't fit your philosophy or definition of "NORMAL" doesn't change that. There comes a time when propaganda must give way to truth.
openeyes1 says:
11:44 PM, 12/01/2011
@tbone85; "Even funnier to read that a crossover that hasn't even been sold yet is responsible for the multi-decade slide at Saab"
Let's see tbone85, have you forgot the 9-7x Gas Hog (built 2005-2009), was based on the GMT360 SUV (Chevrolet TrailBlazer, Oldsmobile Bravada, ect...) one heavy pig that barely got 16MPG in mixed driving. This vehicle was SAAB's answer to the discontinued five door hatchback (the SAABuru 9-2x was a one year flop), and was as anti SAAB as a lumpy Sumo wrestler is to a fleet-footed Gazelle.
"the 9-3 was pretty awful at space management"
Wrong again, as an owner of both a 900 and 9-3 hatchback, these full sized hatchbacks had terrific cargo capacity, and as for seating capability any NORMAL sized person, or a group of them would find this vehicle comfortable.
engineer_mba says:
04:32 PM, 12/01/2011
This on-going saga is painful to watch. I am just old enough to remember a time during the late seventies and much of the eighties when SAAB was an exciting, unique, and quirky brand that was respected and highly regarded by educated, young urban professionals (yuppies) as much as Audi and BMW. The reliability was inconsistent but the practical and forward looking designs were still impressive and awe inspiring. I remember the original 9000 Turbo. It was called the "four-door Porsche" and SAAB's slogan was "The most intelligent car ever built". I really believe that with the right quality, reliability, design, performance, and product line-up, SAAB might be where Audi is today. I wish SAAB all the best....
cz_75 says:
04:19 PM, 12/01/2011
With so few cars built, they had better be extremely reliable, considering how much time the workers had to spend on them.
tbone85 says:
04:15 PM, 12/01/2011
Pretty humorous to read GM blamed for the prolonged rape of Saab by it's new owners. Even funnier to read that a crossover that hasn't even been sold yet is responsible for the multi-decade slide at Saab. There comes a time when hators and fanboys leave any semblance of rationality.
I liked Saab products before GM, during GM, and even the post GM 9-5. They've never been industry leaders, but their products were interesting, practical, and enjoyable. Some were space efficient ( 900, 9000, 9-5) the 9-3 was pretty awful at space management. Saab has been slipping for decades due to competitive pressures and an inability to attract new customers. Like many other European marques, it floundered and was sold. It's business, _hit happens.
justinlink says:
12:06 PM, 12/01/2011
it's more than that, ed124c. The 9-5 and everything in it is GM, from the Epsilon II platform down to the powertrains.
ed124c says:
09:45 AM, 12/01/2011
I think GM has a good reason for not approving the Chinese takeover: GM doesn't want China to get the GM technology that is used in, at least, the large SAAB SUV, which is basically just a GM vehicle.
I believe GM is trying to come to an agreement that will satisfy all three sides-- GM, SAAB, and the Chinese investors.
Then again, who really knows what's going on?
openeyes1 says:
09:42 AM, 12/01/2011
The very practical SAAB hatchback design is what made this company (discontinued by GM), and the fat gas guzzling SUV (designed by GM) will be what destroys it...
seansean2 says:
09:37 AM, 12/01/2011
I hate GM, I really do. Aside from stealing billions of taxpayer money and investing billions that wasn't theirs overseas, they ruined Saab. Now they won't let the Chinese buy Saab. It's quite irritating.
It's unpatriotic to buy an Communist Motors product.
b_thunder says:
09:29 AM, 12/01/2011
I better buy several hood and steering wheel badges... They break/chip away too easily... the supply may not be around much longer