Saab, The Car For Waiters And Waitresses

Bertel Schmitt
by Bertel Schmitt

I am getting tired writing about Saab. According to the clicks on Saab-stories, you are getting tired as well. Empty promises, missed deadlines, endless wait. There is even dissension in the ranks of Saabsunited, where more and more people are getting tired of waiting. So, let’s make this short.

Reuters reports that the wait will be a few months longer. According to a Saab press release, “Saab Automobile plans to restart production by Tuesday August 9, provided that the above criteria are met.” Some of the criteria are “discussions with its suppliers on materials supply and commercial terms.”

The Saab workforce has been sitting on their thumbs for close to three months now. They were paid. Two weeks ago, Saab did not have the money to pay the salaries of the idled workers. The company stared bankruptcy in the eye. In the meantime, half of Saabs real estate was sold, and other sources of cash were tapped. Most of that money is going to pay workers for doing nothing. They can’t work without parts. It is a waste of money to pay people for doing nothing. Money Saab clearly cannot afford. If Saab would have paid suppliers on time, cars would be leaving the factory.


Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • GS650G GS650G on Jul 07, 2011

    @moorewr The Japanese government props up most of their industries. I lived there before and know how it works all too well. Our government is at odds with companies until the bottom falls out then pols rush in with our money to stop the bleeding. We've been propping up LOTS of industries, through tariffs, defense contracts, you name it. Maybe it's time for it all to stop. That's my position on the matter. Others like Mikey 978 think it's OK just because other countries do it. Flawed logic that costs everyone billions.

  • Bertel Schmitt Bertel Schmitt on Jul 08, 2011

    I am reading all the time how the Japanese government props up their own and makes the life of imports miserable. Where is the proof? Import duties on cars are zero. And from talking to Japanese manufacturers, I hear that they have the feeling as if their government doesn't want them anymore. They complain about - High taxes (common complaint everywhere) - Unsustainably high exchange rate - Foot-dragging on free trade agreements - An electrical power crisis which is getting worse The Japanese industry would like a little help to get through these hard times, but the government is doing nothing. Nobody wants bailouts or trade barriers. They want the lights to stay on, and production at home to be viable, that's all.

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    • Inside Looking Out Inside Looking Out on Jul 09, 2011

      @Pch101 Exactly. Japanese do not need regulations to prefer domestically made products over imported. It is part of culture and is similar to Germany with difference that German products are more expensive. Made in (or designed in) Germany almost automatically means uncompromisingly high quality of engineering and execution. Japanese advantage is in ability make high quality products for affordable price. But it is based on compromises of course. German cars and optics are better than Japanese but less affordable because people are ready to pay higher prices for German products. Meticulous execution and attention to details is part of German and Japanese national character. American culture gravitates more to owning more junk for less money, sale events, discount pricing, buying cheap food and so on. No wonder Walmart and fast food concept was invented in America and successfully exported all over the world. No matter what French will tell you - they like it too. I can attest that French guys who work with me regularly buy hamburgers and similar unhealthy stuff during lunch and eat it with great pleasure what always made me scratch my head. Well they also smoke and prefer Walmart prices. Is it funny after all?

  • Its_Magic Its_Magic on Jul 08, 2011

    Saab Automobile's debts to sub-contractors are far greater than previously thought. New data tells a couple of billion kronor. http://www.affarsvarlden.se/hem/fordon/article3216524.ece

  • GS650G GS650G on Jul 08, 2011

    Selling foreign products in Japan is easy, just partner up with a Japanese firm and you are in. If you care to do it yourself you will soon find out just how tough they make it to practice in country. I watched my company's products get marked up 250% by the distributor, removing any advantage a cheap dollar might have. Any movement in the exchange rate bought new cars for the execs, not lower prices. As for SAAB, there is a large SAAB-focused repair and parts center near me. Quite a collection he has, I'll have to get some photos of the yard and post them. As they say, take a picture it lasts longer.

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