Date: Tue, 7 Aug 2001 19:35:15 -0400 From: "Jeremy Brown" <Jerem43nopsamnet> Subject: Re: Saab and GMC
"Johannes H Andersen" <johannes.andersennopsamel.ac.uk> wrote in message news:3B705E78.3F9CA80Cnopsamel.ac.uk... > > > DSJKALLEN wrote: > > > > Johannes, give the guy a break. If it were not the assocation with GM, Saab > > would have "teamed" - if you wish to use that word" - with someone else. It > > was a financial necessity. > > Yes, precisely. Money talks. The guy seems to think that Saab gains from GM's > knowledge. The technology and quality flows the other way. What has GM to > offer apart from cost cutting production methods? 1. Economies of Scale. A larger corporation can buy parts, e.g. the same Bosch parts that were used before GM, at a much lower cost. All this means that your total cost of ownership is going to be lower. I have seen the difference already in my 86 900 Turbo. Recently I had the ball joints replaced at the dealer for only $400 US, three years ago that is what I paid for the same job at an independent shop with Non-Saab parts on my 85 900 base. 2. Modernization Capital GM is the largest manufacturing company in the world, and as such has a huge capital budget that can help Saab get the best and newest manufacturing machinery. When Saab was independent, a complete retool of the factory would be something that may have been deferred or outright not done, putting them in a viscous catch-22 of not designing new models because lack of funds that wouldn't be coming in because the public wasn't buying because the models were too old. 3. Advertising Capital In the US, Saab is in a major ad campaign the likes I have not seen in years [from Saab]. Saab commercials are now running on the major networks during prime time slots or during major sports events, a costly thing with top shows getting $30,000 or more for thirty seconds of ad time. The funding for this endeavor is coming from GM. 4. R&D Funding The cost of designing a new model of car is staggering, upwards of hundreds of millions of dollars (US). Saab now has the European GM Design facilities to help design its future cars, and their very expensive computers and software to help speed the design stage up. 5. Expanded Facilities Another advantage will be Saab can now outsource parts to other GM Europe facilities, e.g. the V-6 engine made at the Opel facilities in Germany, allowing more vehicles to be manufactured, thus more sold. More vehicles sold means higher visibility, and more visibility raises consumer awareness, increasing demand. 6. GM Technical Knowledge Base. Between all the various GM Auto Divisions is about 500+ years of total car manufacturing experience in every imaginable car type. You infer in your statement that basically is that GM is a bunch of idiots putting together junk cars with nothing to add to Saab and that is false. GM has had a lot of very good divisions and marques, all of that can contribute to Saab. One system GM has already contributed is ON*Star, the vehicle cellular help system that can get you directions, unlock you doors remotely, get help in situations such as flats or break downs, etc. Also, GM has a new fuel cell system that will save gas and be better for the environment and will be putting in all its cars by, hopefully, 2006 [That is if it sells. Money does still dictate any companies investment strategy] . 7. Purchasing Support. GMAC is GMs financing division that many people use to purchase new vehicles. Before, Saabs financing system was small or non-existent. GM has raised awareness of the Saab brand with GMAC. Yes, it has a lot to with money, but that is not all. And, no, I do not work for GM. Jeremy
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