Volvo and Saab: A Tale Of Two Swedes
For a country of only nine million people, Sweden has certainly
left its mark on the world, particularly on the automotive
industry. Two car makers, Volvo and Saab, hail from this Nordic
nation. Interestingly, both car makers are now part of two
American auto giants, but their legendary quality and
engineering continues to shape the industry.
Changes in the global auto industry during the 1980s and 1990s
meant that many smaller players would have to merge in order to
survive. Although Saab and Volvo were building the cars that
consumers wanted and needed, their long term survival was in
jeopardy. Questions regarding the costs involved in modernizing
factories, streamlining production, updating models, and
expanding their respective markets became paramount in the
decision that both companies made to seek outside assistance.
Fortunately, two American suitors were found that have allowed
these Swedish automakers to continue production unabated while
allowing for a much needed infusion of cash.
Saab - General Motors purchased the remaining shares of
Saab in 2000 and the car company has gradually been pulled into
the GM fold ever since then. Unlike American divisions such as
Cadillac, Buick, and Chevrolet, General Motors is handling their
Swedish division a bit differently by giving the automaker a bit
more autonomy in product development and market distribution.
Still, new Saab models are borrowing heavily from the GM parts
bin, with the Saab 9-7x being a chief example of this change.
Based on the successful Chevrolet/GMC/Buick midsize SUVs - think
Chevrolet TrailBlazer - the new Saab is more refined with a
stiffer and quieter ride than its GM cousins. Happily, the
powers that be at GM also had the presence of mind to
incorporate familiar Saab interior ideas into the 9-7x
including: the ubiquitous Saab center console mounted ignition
switch, green backlighting, and the grid patterned vents with
rubbery knobs. Consumer sentiment so far has been favorable and
the new 9-7x has been well received by auto critics.
Volvo - When Ford Motor Company purchased Volvo's car
division in 1999 [Volvo's truck division was not part of the
deal], many felt that an important era in Volvo engineering
would come to an end. Fortunately, they have been proven wrong.
Even more so than GM, Ford has allowed Volvo to exercise
significant independence and has adopted Volvo engineering and
safety practices to other Ford models quite successfully. Most
new Volvo models are Volvo inspired with the U.S. automaker
benefiting by the sharing of important resources. One exception
is Volvo's new CX50 SUV which will be sharing the same platform
as the Land Rover Freelander and the Ford Mondeo, but beyond
that the rest of the vehicle is all Volvo engineering. Volvo's
influence on Ford has extended to the new Ford Five Hundred
sedan, which borrowed Volvo's front wheel drive chassis because
it could be easily converted to an all wheel drive chassis, an
important selling point.
In all, both Saab and Volvo have a lot to be proud of. If Ford
and GM behave themselves and give the two automakers wide
latitude, all the cars within the two company's folds are
certain to benefit. Only time will tell if this proves out.