IHS Global Insight Perspective | |
Significance | Saab is said to be planning to underpin the next generation of its important 9-3 model with a self-developed architecture. The automaker has also signed up a new designer to lead the work on this model. |
Implications | Although the new 9-5 and 9-4X sport utility vehicle will be important models for Saab as it attempts to recover from the declines witnessed during the past couple of years, the 9-3 will be key to driving it back to long-term profitability. |
Outlook | Despite Saab's ambitions for this model, it is unlikely to have an easy time of it given the massive competition it will face from German rivals, and any misstep could raise further questions over the future of the automaker as an independent company. |
Saab Making Progress on New 9-3
Saab is said to be developing its own architecture on which to base its important next-generation 9-3 model, according to Autocar. The enthusiast publication has been told that Saab's head of powertrain, Kjell ac Bergström, has put off his retirement for two years to oversee the new "Phoenix Architecture" into production. The vehicle is expected to be launched in late 2012 and is expected to incorporate the same body styles as those seen for the current generation—namely sedan, estate (station wagon), and cabriolet. In addition, a hatchback version will be reintroduced after it was phased out in 2002 with an earlier generation. The latter body style is expected to compete with Audi's A3, but will be larger in size.
The report suggests that the key to this strategy will be the purchase of "off-the-shelf" components from manufacturers that supply other premium automakers rather than having components developed to its own specifications. Among the issues being discussed at the automaker is whether to use a traditional McPherson strut design for the front suspension or whether to use its High Performance (HiPer) strut system fitted to high-specification variants of the new 9-5. Choosing the latter would reportedly result in characteristics similar to a double-wishbone layout and would improve the steering in comparison to McPherson struts. The company is also said to be considering whether to use its self-developed linked H-arm design for the rear suspension instead of the four-link design used on lower-specification 9-5s, and which improves comfort by isolating the sub-frame.
The magazine also suggests that the automaker could be supplied with gasoline (petrol) and diesel engines for this model from BMW, following earlier reports that such an arrangement would be limited to its new small model and the 9-4X SUV (see Germany - Sweden: 14 June 2010: Saab in Talks with BMW About Using Mini Architecture for New Small Car). However, significant modifications would be made using Saab's experience in turbocharging and engine management systems. However, the publication adds that the company would also make changes to the current generation of this model, including the inclusion of General Motors' (GM) 1.6-litre turbo gasoline engine.
Signs Up New Designer
Saab has meanwhile signed up Jason Castriota as the new head designer to work on its new models, including the new 9-3, reports Bloomberg News. Victor Muller, chief executive officer (CEO) of the Swedish automaker's parent company, Spyker Cars NV, confirmed the news, telling the news service, "The 9-3 design as made by him is basically done, and I can tell you it is spectacular…It is truly aircraft-inspired and Swedish-clean."
Castriota has previously worked at Italy's Pininfarina and Stile Bertone on Maserati's GranTurismo and Ferrari's 599, as well as the high-profile, one-off Ferrari P4/5 built by the design house. He told Bloomberg in an interview that the focus of the new model will be on aerodynamics, and the new 9-3 will be benchmarked against the "true premium vehicles" such as the Audi A4 and BMW 3-Series. Castriota added, "It's absolutely vital we get this car right…This is Saab returning to its roots, not having to worry about being part of a much larger machine that they were before in the GM organization."
Outlook and Implications
Although the latest-generation 9-5 and the new 9-4X sport utility vehicle (SUV) will be important in rebuilding the Swedish automaker's brand, these vehicles were set out under GM's ownership of the company and it will thus not be until the introduction of the next-generation 9-3 that the full rebirth will begin. This has been by far the most voluminous model in Saab's line-up during the past seven years, with sales reaching over 90,000 units in 2007. However, since then demand for the model has plummeted, reaching less than one-third this number in 2009, not helped by the economic crisis and fears that the automaker could be closed.
It will be no small task to complete the development of this architecture within the next two years, and it is likely that the self-developed architecture will have some basis in GM's Delta II platform, from which the model was previously said to be derived. However, looking at the specifications published by the magazine, making the brand's engineering increasingly independent from that of GM's will be the order of the day. This will be important to inject individual brand characteristics into this model and steer customers away from linking it with its former U.S. parent company. However, a balance will need to be struck between all of this advanced technology and the cost of implementing it, particularly as it is very unlikely to sell in the volumes achieved by its closest rivals.
The issues the 9-3 faces against its closest rivals, such as the BMW 3-Series, Audi A4, and Mercedes C-Class, and how Saab tackles them could well determine whether this model succeeds or not. Its task will not be made any easier by the fact that these automakers are tackling increasingly niche markets to gain the maximum number of customers for their brands. Although technology and how the model drives will be important, the initial attraction for the 9-3 will be how it looks. Although Castriota faces a difficult task, he seems to have the measure of the brand's values and the backing of Muller to achieve his goals. It remains to be seen whether the eventual production model will be enough to lift Saab back to profitability and keep it there. If this does prove to be the case, it seems inevitable that the new small Saab, currently codenamed the 92 (see Sweden: 31 May 2010: Saab Owner to Look at Small Model During Next 100 Days in Charge), will make into production. However, any misstep for the 9-3 could raise questions over the automaker's ability to succeed as an independent company.
