Saab Story Comes to a Happy Conclusion

Saab Automobile AB, the other Swedish automaker, apparently will live on after all. Since last summer the Saab brand has been on a roller coaster, only in this case the car left the tracks a couple of times before finally being put back on for one final time and whooshing to the finish line.

On Tuesday, General Motors and Spyker Cars NV confirmed that they reached a binding agreement on the purchase of Saab Automobile AB. The deal, which may be concluded in matter of days, will close a chapter on American ownership that began back in 1990 when GM purchased a 50 percent stake in the company.

Forgettable Saab Models

A decade later GM took complete control of Saab, bringing to the world the Saab brand while bringing to customers several forgettable models including the “Saabaru” 9-2X and the Chevy TrailBlazer-inspired 9-7X SUV. More recently, Saab has been in a transition, dumping aged models in favor of all things new including an all-new 9-5 and, perhaps soon, its 9-4X crossover. That transition was threatened when the brand was courted and later dumped by Koenigsegg.

Spyker is a curious match for Saab, a Dutch manufacturer of ultra exotic supercars, hand built masterpieces of which only 50 models are assembled each year. Though Saab has shrunken considerably in recent years to where they currently sell fewer than 100,000 units globally, the brand is a much bigger name than Spyker with far more employees too.

Saab Spyker Automobiles

Yet, Spyker has been itching to buy Saab, even when an earlier deal with GM fell through and the automaker declared Saab dead. Once that declaration was made, Spyker pushed to rectify the issues which led to GM backing away from the deal which brings us to our present point: a newly minted company by the name of Saab Spyker Automobiles.

There are a few hurdles which remain before the deal can be inked. Those hurdles involve regulatory, court, and government review, in addition to a review by the Swedish government which is backing a loan which will be used to fund Saab going forward.

GM has not made known the terms of the agreement which had GM officials saying at one time that they would accept just $1 from a serious bidder to close the operation (see SaabsUnited: The $1 Saab Story).

Had GM followed through on its promise to wind down Saab, that move would have cost the automaker in excess of $100 million to bring to finalization. In effect, Spyker has done GM a huge favor while allowing Saab workers to continue on with what they are doing at least for the short term.

Source: GM Corp.

Volvo S40: Compact Swedish Goodness

Safe, compact and competitively priced – the S40 upholds legendary Volvo safety and quality!

Volvo was one of the first European car manufacturers to introduce to the American market the compact executive sedan, a segment of small cars targeting young, affluent buyers. The Volvo S40 is the current interpretation of that type of car from the Swedish automaker, a five-cylinder gas powered sport model loaded with expected Volvo amenities but offered at a surprisingly reasonable price.

True to reputation, Volvo strongly appeals to women. In a 2007 J.D. Power & Associates survey of cars with the highest female ownership rate, the S40 finished on top, while two other Volvo models finished in the top ten. Given that Volvo has long represented safety, durability, fine craftsmanship, engineering and technological leadership, the S40′s appeal is understandable. And, with a base sticker price of $28,550, the S40 is priced several thousand dollars below the Mercedes C-Class and the BMW 3 Series.

Imparting Volvo Design Language to the S40

Throughout its exterior, Volvo meticulously applied the same simple, clean design found on its larger S60 and S80 sedans to the S40. Subtle differences such as slightly sharper hood creases and an abbreviated trunk sets this model apart, but the iconic Volvo grille strap offers a visible reminder that the S40 upholds all things Volvo.

Inside, the main attention getter is the S40′s free-floating center console, a design that bridges the dash with the transmission console. The dash itself is simple, clean and easy to read with all controls mounted on the telescoping steering column or within easy reach on either side. And, yes, a power moon roof is standard across the model line.

A generous amount of storage space is available in the door panels as well as in the center console, improvements Volvo made recently in response to customer requests. The cabin is quiet with outside noise reduced to an acceptably low level.

A Good Blend of Safety, Luxury and Technology

A full complement of airbags protects occupants who have the luxury of enjoying comfortably supportive leather seating while an optional premium Dolby ProLogic surround sound system provides matchless music enjoyment thanks to twelve strategically placed in-cabin speakers. A hands-free Bluetooth system is standard across all three trim levels, with a navigation system map upgrade or Real Time Traffic navigation option available on front and all wheel drive T5 packages only.

Rear seating is for three adults, with legroom tight for taller passengers. A 60/40 split rear seat extends the storage area which can be extended even further by folding down the front passenger seat. For the driver desiring maximum storage capacity then considering the V50, which is the station wagon version of the S40, would provide the right solution. If you have small children, the integrated booster seat option ensures their safety while eliminating the worry of whether their car seats are installed properly.

For a car of its size, the S40 handles quite well, navigating corners with ease while the suspension absorbs potholes much in the same way as a large American sedan would. Most definitely, excellent handling and ride are Volvo strong suits, something not all that common in a compact model.

Normally Aspirated or Turbocharged Engine Choices

Under the hood is found a rarity, or perhaps an oddity would best describe the odd number of cylinders, five, powering the S40. The 2.4L inline-five engine produces 168 horsepower and 170 lb.-feet of torque and is paired with a five speed automatic gearbox. This combination doesn’t produce quite the amount of power that you’d expect, but the trade off is nice: a segment leading 31 mpg on the highway.

For the driver desiring an extra boost of power, an optional turbocharged 2.5L I4 engine increases horsepower by thirty-five percent while reducing highway fuel economy by just ten percent. Available only with the upgraded T-5 R-Design model, this package adds about four thousand dollars to the sedan’s price, which also includes sport treatment improvements such as suspension upgrade, ground effects package and a rear truck lid spoiler. For the driver who plans to spend an extended amount of time in their car, the T5 package is a must.

Choose the Haldex all wheel drive option if you’re looking to conquer winter driving or demand sure footing on wet roads. Electronically controlled, the $1450 option package will reduce your fuel economy only slightly.

Safety, A Volvo Hallmark

Just like its larger brethren, the S40 is long on safety features and has received high marks in government crash tests. Besides incorporating a comprehensive airbag system designed to protect all passengers, the trademark Whiplash Protection Seating System (WHIPS) is credited with reducing long-term neck and spinal injuries by more than fifty percent. WHIPS utilizes a specially designed hinge mount that attaches the back rest to the seat bottom, which has a pre-determined rate of rearward movement in the event of certain types of rear impacts. First introduced in 1999, WHIPS is standard on all Volvo models.

Dynamic stability and traction control is standard as are anti-lock brakes while dual xenon active bending lights is an option that provides twice the illumination of conventional halogen headlights. Another Volvo safety option is BLIS or Blind Spot Information System which includes rear-facing digital cameras installed in the door mirrors, a feature that monitors the traffic on either side of the car.

All Volvo S40s include complimentary factory scheduled maintenance for the first three years or 36,000 miles along with a warranty of four years or 50,000 miles, whichever occurs first.

The Fundamentals

For the driver who demands class leading safety features, reliability and quality, the compact Volvo S40 proves that a smaller size doesn’t mean having to settle for less nor paying a premium for that experience.

Report Says Koenigsegg Interested In Saab

Getting rid of Saab is a big priority for General Motors who is about to find itself shepherded through U.S. bankruptcy court by the Obama administration. Bleeding money like never before, GM needs to shed whatever operations aren’t essential to its business, with Saab being one of them.

Swedish super car maker, Koenigsegg, appears to be interested in making a play for Saab at least that is the report shared by Reuters who picked up comments published to a Swedish business daily yesterday. Fiat SpA, which is about to acquire Chrysler is also interested in Saab as is a U.S. financier, Ira Rennert, who heads up the Renco Group.

Big Money Contending For Saab, Plus Fiat

According to Reuters, Koenigsegg is lining up a group of very wealthy people to help the company make a bid for Saab.  He’ll need to come up with a strong bid because Ira Rennert himself is very rich, a billionaire at that. Fiat doesn’t have the deep pockets to make a serious play for Saab unless, of course, they plan on bringing other people’s money to the bidding war.

Koenigsegg Motors AB was founded in 1994 by Christian von Koenigsegg, a low volume producer of super cars including the pictured Koenigsegg CCX (Wikipedia file photo), a mid-engine roadster that can go from zero to sixty in just over three seconds and with a top speed in excess of 245 mph.

Big Bucks For Your Koenigsegg Super Car

Each Koenigsegg model is custom built and outfitted to customer specifications and priced accordingly: expect to pay up to one million dollars for your super car, perhaps more if you go with a limited edition model.

For Saab, the end of its relationship with General Motors appears to be in sight.  Nearly twenty years ago General Motors purchase a fifty percent stake in the automaker, increasing it to full ownership in 2000. Never a profitable undertaking for GM, Saab has always trailed Ford-owned Volvo badly among Swedish brands, a gap that the new owner will be looking to close.

See Also — Separating The Good GM From The Bad