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Feann Torr17 Aug 2011
NEWS

Saab to skip Frankfurt motor show

Swedish car maker continues to negotiate supply contracts for its restructuring process and has confirmed it will not attend the Frankfurt motor show

Reports in the European press that Swedish prestige car maker Saab has pulled out of the 2011 Frankfurt Motor Show are not entirely correct, claims Saab Australia's Managing Director, Stephen Nicholls.


"No that's not possible," stated Nicholls, "We never committed to the Frankfurt motor show. We announced the decision that we've got better things to spend our money on right now."


Nicholls explained that the company has been struggling lately, referring to production stoppages at its Trollhatten plant in Sweden since March and an assembly line slow down since June, and that priorities had to be made.


"It's one of those things where it would have been part of the plans at the beginning of the year [not to attend Frankfurt] and these things are planned a long time in advance. Basically where we're at right now, we're in the negotiations with suppliers to set up payment schedules...


"And it really wouldn't feel right to spend all that money on a motor show at the time when we're doing that in the background. That's probably the real answer to it."


Asked if Saab was committed to the Australian market, Nicholls was unequivocal, saying that it's here to stay, but he didn't sugar-coat the truth, adding that Saab needs more investment in order to keep manufacturing cars.


"I think there are lots of issues that are facing us. I don't want to say too many things at the moment, because obviously we have our plan and we're just waiting to really start things going again.


"At the moment we are being rather quiet, we're keeping a low profile, and we're going to wait for the announcement from head office in Europe about the restructuring and the recapitalisation of the company at which time we'll be ready to get going again."


Saab faces several challenges, both internationally and in Australia, and even getting bums on seats has proved trying. The company sold just 14 cars in July and has sold 98 thus far in 2011.


"I think the current uncertainties that have come out over the last couple of months have not helped us at all. I would say our customers and owners are still very loyal and very committed to the brand and people we don't necessarily have a relationship with us, who haven’t experienced what owning a Saab is like, are hanging back and waiting to see what happens."


But it's not all doom and gloom for Saab. He pointed to the PhoeniX concept car (first image) seen at the 2011 Geneva motor show earlier in the year - a preview of the next generation Saab 9-3 - to highlight the company's commitment to new product, which will drive interest and sales in the brand in the next couple of years.


"There were a few styling features of that car [PheoniX] that had design flourishes that won't make it through to the production car, but the underpinnings and running gear are the next gen 9-3," confirmed Nicholls. "It's more than a pie in the sky concept, its' actually a very early design study for the next generation 9-3. So yes, we're really looking to seeing this production car in the flesh."


Another point of interest is the involvement of Chinese investors, with China's largest publicly traded car distributor, Pang Da, buying a large stake of Saab. And of this acquisition, the Chinese company will get a bigger say in how the company operates, and also what it builds.


"Pang Da is going to be a very serious investor in the company and it will take seats on the board and will definitely become more involved in the company," confirmed Nicholls.


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