Does a Saab Badge-Engineered Subaru WRX or GMC Envoy Make Sense?
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| New Saab 9-3 is more mainstream than previous Saab products, but despite this it is only one of two product lines sold by the Swedish automaker. (Photo: Trevor Hofmann, Canadian Auto Press) |
General Motors is contemplating assembling Saab vehicles in the United States in an attempt to revive the ailing Swedish automaker. An interview with GM CEO Rick Wagoner stated that considering a closer relationship with Saab would be ideal.
However, where new ties are formed, other ties might be severed. The first casualties will be jobs in Sweden. An estimated 800 jobs may be eliminated at the 9-5 assembly plant in Trollhattan.
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| Saab recently redesigned the midsize 9-5 but sales still struggle compared to other European brands. (Photo: Saab) |
Although bringing Saab to North America would be a dramatic new business strategy for the Swedish company, General Motors has to consider the overall viability of the Swedish brand. Too much time might have to be devoted to safeguarding Saab's unique identity, and not enough on preserving the company itself.
A new restructuring program dubbed Viggen, or "thunderbolt", bases part of its premise on the production of Saab's in North America. Its plans are for market specific products derived from other GM divisions or affiliates, such as Subaru. Viggen, conceived by Saab executives 6 months ago, may include a version of Subaru's hot WRX wagon and most recently announced, GMC Envoy/Chevy Trailblazer SUV. The new plan is almost in full motion but Wagoner remarked that, "they have got to pick up the pace on it, but it's moving quite good."