No change for now...
June 26, 2009
Loss-making millstones Saab and Hummer are heading into new ownership arrangements, but for the present the elite Premium Brands' operation Holden conceived to sell them here still operates as usual.
That's the response from Holden New Zealand after an approach for comment about the future prospects of these brands.
We wanted to know what happens with Hummer and Saab once they go to their new owners, deals that are likely to be fully sorted before year-end.
Logically, this would mean the end of the Premium Brands operation. So where would that leave New Zealand's four existing franchise holders?
Apparently, they're good questions. But also good questions that Holden New Zealand will answer in good time. For now, says the Auckland office, its just business as usual.
"To answer your questions the brands mentioned haven't been sold as of yet," responded Corporate Affairs manager Chantelle Urquhart.
"The sales processes have just begun with the MOUs (that's memorandums of understanding) being agreed. Therefore any comments on the impact on sales networks in NZ would be premature."
Both brands have been poor sellers - just 44 Hummer H3s found homes here last year, and even fewer Saabs, 35 cars.
It's hardly the sort of performance required to keep the lights on, but from where this writer sits, there's still potential for Saab.
The brand is still an icon to Swedes - it produced its first car back in 1947 - and is well-supported in its homeland. In markets where sales are not fired by nationalistic fervour, the good news is that there's finally genuinely new product on the horizon.
Set for release at the Frankfurt motor show in September is the much-anticipated rendition of the 9-5 large sedan that at last bumps off the current car, which in auto terms has reached geriatric status - undoubtedly the primary reason why it achieved just four sales here last year.
In 2010 comes another new Saab, a sports utility called the 9-4X. It's based on the Cadillac SRX and apparently will be produced in right-hand drive.
The prognosis for Hummer, the most potent symbol of General Motors' commitment to giant gas-guzzling SUVs, is nowhere near as good.
We'd suggest the change of ownership might provide a good excuse for giving the H3, its smallest model and the only one sold new here, the flick.
Any love GM had for Hummer has gone. Of the all the brands it has been keen to offload as part of the Chapter 11 bankruptcy, this one has had a special 'must go' priority.
And yes, while there's still paperwork to sort, there's no doubt that Hummer within a few months will belong to Sichuan Tengzhong Heavy Industrial Machinery, which specialises in building heavy-duty construction trucks.
The enormity of the deal has not bypassed China's state media, which describes the process as "a snake attempting to swallow an elephant."
Sichuan Tengzhong was not the only interested party - AM General, which sold the brand to GM in 1999 but still builds the original military Humvee on which the brand was based, also was interested in buying it back. But only the Chinese had the cash in hand.
What will they do with Hummer? America's BusinessWeek magazine says Sichuan Tengzhong will market the brand globally, as GM has been trying to do, and probably build Hummer vehicles in other plants around the globe (our H3s come out South Africa, for instance).
The H3 will definitely remain in production, but whether that's a good thing is debatable. It certainly hasn't been much of a seller in New Zealand - though, ironically, news of GM's sell-off did seem to spur a slight 'last chance' splurge by enthusiasts in the past couple of months.
Overall, though, there just aren't too many Kiwis interested in cumbersome, poorly-built and hugely thirsty American-designed petrol SUVs.
The biggest blow for Hummer was being deserted by folk back Stateside. Once one of America's hottest must-have toys, Hummer sales in the US fell 51 percent last year as fuel prices spiked and its militaristic, anti-green image suddenly just didn't seem cool any more.
Saab's deal with Koenigsegg Automotive is still in its early phase and still requires Swedish court approval, but it does look good for a brand that has proven to be a real survivor despite cruel neglect by its outgoing owner.
GM bought a 50 percent stake in Saab in 1989 and by 1995 the Swedes were celebrating achieving profit for the first time in seven years. Things startd to go wrong in 2000, when GM bought up the remaining shareholding - then seemed to do precious little with it.
If anything, GM stifled the Swedes. Overseas' commentators say Saab actually had a new 9-5 for launch in 2005, based on the 'Premium' platform (used on the Alfa 159), which was engineered by Saab. But when GM and Fiat ended their partnership, GM insisted that Saab shelve the car. Imagine the cost of that.
The new 9-5 to be seen in September is again based on Opel underpinnings - the same platform that is employed by the Insignia - but has much more input from Trollhatten than the current car, with 90 percent of its engineering having been done in Sweden.
It has a 100mm longer wheelbase, most of which is used to improve rear legroom, though the boot is also said to be particularly big.
All-wheel-drive will be an option this time, and there'll be a winder choice of diesel engines in addition to an assortment of turbocharged petrols, ranging from a 1.6-litre four to a 2.8-litre V6.
Reports suggest Saab's stylists have tried to incorporate the firm's traditional wrap-around screen in the car, as well as the distinctive C-pillar, domed roof and flat-topped door window frames.
The nose design is taken directly from the Aero-X concept car while interior is said to be very close to that seen on another concept, the 9-4X, including the central speedo. The only switchgear shared with the Insignia is the column stalks and the headlamp switch.
As for Saab's sale? Many of the details are still under wraps, but the sale is thought to include include a huge funding commitment from the European Investment Bank, which the Swedish government will guarantee, while GM and Koenigsegg Group are also expected to provide additional funding.
There's no Saab supercar on the horizon, but designer Baard Eker, who owns a 49 percent stake in Koenigsegg, says he wants to refine Saab's "soul and spirit."
Regarding Saab's green future, he said: "Obviously we have some ideas but it's too early to talk about them, but environmental thinking is a very important thing in our view."
What this means to you:
Hope I'm right - Saab's an innovator and deserves better days; Hummer's a crass invader whose product is out of step with reality.
That's the response from Holden New Zealand after an approach for comment about the future prospects of these brands.
We wanted to know what happens with Hummer and Saab once they go to their new owners, deals that are likely to be fully sorted before year-end.
Logically, this would mean the end of the Premium Brands operation. So where would that leave New Zealand's four existing franchise holders?
Apparently, they're good questions. But also good questions that Holden New Zealand will answer in good time. For now, says the Auckland office, its just business as usual.
"To answer your questions the brands mentioned haven't been sold as of yet," responded Corporate Affairs manager Chantelle Urquhart.
"The sales processes have just begun with the MOUs (that's memorandums of understanding) being agreed. Therefore any comments on the impact on sales networks in NZ would be premature."
Both brands have been poor sellers - just 44 Hummer H3s found homes here last year, and even fewer Saabs, 35 cars.
It's hardly the sort of performance required to keep the lights on, but from where this writer sits, there's still potential for Saab.
The brand is still an icon to Swedes - it produced its first car back in 1947 - and is well-supported in its homeland. In markets where sales are not fired by nationalistic fervour, the good news is that there's finally genuinely new product on the horizon.
Set for release at the Frankfurt motor show in September is the much-anticipated rendition of the 9-5 large sedan that at last bumps off the current car, which in auto terms has reached geriatric status - undoubtedly the primary reason why it achieved just four sales here last year.
In 2010 comes another new Saab, a sports utility called the 9-4X. It's based on the Cadillac SRX and apparently will be produced in right-hand drive.
The prognosis for Hummer, the most potent symbol of General Motors' commitment to giant gas-guzzling SUVs, is nowhere near as good.
We'd suggest the change of ownership might provide a good excuse for giving the H3, its smallest model and the only one sold new here, the flick.
Any love GM had for Hummer has gone. Of the all the brands it has been keen to offload as part of the Chapter 11 bankruptcy, this one has had a special 'must go' priority.
And yes, while there's still paperwork to sort, there's no doubt that Hummer within a few months will belong to Sichuan Tengzhong Heavy Industrial Machinery, which specialises in building heavy-duty construction trucks.
The enormity of the deal has not bypassed China's state media, which describes the process as "a snake attempting to swallow an elephant."
Sichuan Tengzhong was not the only interested party - AM General, which sold the brand to GM in 1999 but still builds the original military Humvee on which the brand was based, also was interested in buying it back. But only the Chinese had the cash in hand.
What will they do with Hummer? America's BusinessWeek magazine says Sichuan Tengzhong will market the brand globally, as GM has been trying to do, and probably build Hummer vehicles in other plants around the globe (our H3s come out South Africa, for instance).
The H3 will definitely remain in production, but whether that's a good thing is debatable. It certainly hasn't been much of a seller in New Zealand - though, ironically, news of GM's sell-off did seem to spur a slight 'last chance' splurge by enthusiasts in the past couple of months.
Overall, though, there just aren't too many Kiwis interested in cumbersome, poorly-built and hugely thirsty American-designed petrol SUVs.
The biggest blow for Hummer was being deserted by folk back Stateside. Once one of America's hottest must-have toys, Hummer sales in the US fell 51 percent last year as fuel prices spiked and its militaristic, anti-green image suddenly just didn't seem cool any more.
Saab's deal with Koenigsegg Automotive is still in its early phase and still requires Swedish court approval, but it does look good for a brand that has proven to be a real survivor despite cruel neglect by its outgoing owner.
GM bought a 50 percent stake in Saab in 1989 and by 1995 the Swedes were celebrating achieving profit for the first time in seven years. Things startd to go wrong in 2000, when GM bought up the remaining shareholding - then seemed to do precious little with it.
If anything, GM stifled the Swedes. Overseas' commentators say Saab actually had a new 9-5 for launch in 2005, based on the 'Premium' platform (used on the Alfa 159), which was engineered by Saab. But when GM and Fiat ended their partnership, GM insisted that Saab shelve the car. Imagine the cost of that.
The new 9-5 to be seen in September is again based on Opel underpinnings - the same platform that is employed by the Insignia - but has much more input from Trollhatten than the current car, with 90 percent of its engineering having been done in Sweden.
It has a 100mm longer wheelbase, most of which is used to improve rear legroom, though the boot is also said to be particularly big.
All-wheel-drive will be an option this time, and there'll be a winder choice of diesel engines in addition to an assortment of turbocharged petrols, ranging from a 1.6-litre four to a 2.8-litre V6.
Reports suggest Saab's stylists have tried to incorporate the firm's traditional wrap-around screen in the car, as well as the distinctive C-pillar, domed roof and flat-topped door window frames.
The nose design is taken directly from the Aero-X concept car while interior is said to be very close to that seen on another concept, the 9-4X, including the central speedo. The only switchgear shared with the Insignia is the column stalks and the headlamp switch.
As for Saab's sale? Many of the details are still under wraps, but the sale is thought to include include a huge funding commitment from the European Investment Bank, which the Swedish government will guarantee, while GM and Koenigsegg Group are also expected to provide additional funding.
There's no Saab supercar on the horizon, but designer Baard Eker, who owns a 49 percent stake in Koenigsegg, says he wants to refine Saab's "soul and spirit."
Regarding Saab's green future, he said: "Obviously we have some ideas but it's too early to talk about them, but environmental thinking is a very important thing in our view."
What this means to you:
Hope I'm right - Saab's an innovator and deserves better days; Hummer's a crass invader whose product is out of step with reality.
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