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GM boss: ‘Saab is a critical part of our European portfolio’

General Motors will begin building Saab vehicles in the United States rather than put its Swedish subsidiary up for sale, GM chairman and chief executive Rick Wagoner said on Friday.

Published: 26 July 2008 10:06 CEST
GM boss: 'Saab is a critical part of our European portfolio'

“Saab is a critical part of our European product portfolio and frankly, it does quite well in Europe and tends to be quite a good money maker for us,” Wagoner said during an appearance at GM’s new engineering development centre in Pontiac, Michigan.

“The issue at Saab is trying to sell too many Saabs in the US as the Swedish (krona) has strengthened against the dollar. We can’t push volume in the US. We have to let it settle out and reflect the currency.”

“But we’ve got a number of new (Saab) products coming up beginning in the third quarter next year and it will have a new product portfolio for the first time in a long time.”

Wagoner said one of the new Saab models would be built in the US starting next year.

“Part of the idea would be to balance out their cost footprint. That should help out Saab quite a bit,” Wagoner said.

GM put its Hummer brand up for sale in June and Wagoner said the car-maker has had several offers for the unit.

Germany’s Volkswagen AG also announced this week it plans to build an assembly plant in eastern Tennessee to build VWs for the North American market because of the rising cost of exporting vehicles from Europe.

Wagoner also said GM has no immediate plans to convert any of its truck plants to the production of passenger cars like Ford is doing.

GM announced plans in June to close four truck North American truck assembly plants and the company’s production capacity appears to be in line with demand since stepping up car production at plants in Michigan and Ohio.

Wagoner also waved off suggestions that the auto industry is heading for a global recession.

Car sales are “hanging in reasonably well in western Europe,” he said.

“Russia looks solid and China is still growing pretty well. We’re hopeful we’ll see another global (sales) record this year. Beyond that we’ll have to see how things develop with commodity and energy prices.”

Last week, Wagoner announced that GM planned to cut another 15 billion dollars in expenses from its operating budget by eliminating the jobs of 4,000 salaried personnel and ending supplemental health insurance for employees over the age of 65.

ENVIRONMENT

Power points: What I learned driving 1,777km through France in an electric car

France is a land of many inventions including the cinema, cricket (a disputed claim admittedly) and the electric car, writes John Lichfield.

Published: 26 August 2020 13:54 CEST
Power points: What I learned driving 1,777km through France in an electric car
The French government offers big subsidies to people who buy electric cars. Photo: AFP

Unfortunately, the French invented the electric car a century and a half too early.

In late 19th century, many French cars were electric-powered. They operated on giant batteries which could not be recharged. In the first decade of the 20th century, they were run off the road by the Model-T Ford and by cheap, untaxed petrol.

The second French coming of the electric car, post circa-2014, has been slow – despite government subsidies of €6,000 a car, raised to €7,000 from June.

Sales have jumped in the last two years. There are now reckoned to be over 80,000 private, electric cars on French roads – about 2 percent of the national fleet.

This month, I did my bit for the revolution. I drove a Renault Zoe for 1,777 kilometres from Normandy to the Atlantic Coast to Occitanie and back to Normandy.

 

The experience was, by turns, wonderful and frustrating.

Wonderful because we limited ourselves almost entirely to two-lane roads, rediscovering the vastness of France and its endless variety and beauty, often unknown or forgotten.

Wonderful, also, because the secondary road network in France has been so improved and is so well-maintained (whatever the Gilets Jaunes may say). Some of us recall the crumbling and dangerous N and D roads of the 1970s and 1980s.

Almost all of the roads that we travelled – many of them D-roads – were well-surfaced and had expensively remodelled junctions. France has become, overnight it seems, a land of one million roundabouts.

But what of electric travel in France in 2020? Is it a viable alternative to petrol or diesel?

Is it cheaper? How easy is it to find and use the public recharging points?

This is where the frustrations start.

Much depends on what kind of electric car you use. There are now 43 models available for sale in France, ranging from the expensive to the very expensive.

A Renault Zoe on the production line at Flins-sur-Seine in Yvelines. Photo: AFP

A top of the range Tesla costs €90,000; a bottom of the range Zoe costs €32,000 if you buy, rather than lease, the battery. This is between two and three times more than the equivalent petrol or diesel cars.

The government and regional subsidies help but they apply in full only to the cheaper models.

The cheapest Tesla gives you 500 kilometres of travel before you need to stop and recharge. My 2019 Zoe gives, in theory, 300km (actually it can be less, or more, depending on the ambient temperature, average speed and steepness of the terrain). The new version 2020 Zoe gives 395km.

I’ve had my Zoe for just over a year. It is intended as a city or local rural run-about. In that role, it is excellent.

It’s not a car for long-distances, unless you decide, as we did, to re-create the experience of “motoring” through France in the 1960s.

As soon as you travel at over 90kph, battery power melts alarmingly. Ditto when you go up steep hills but at least your battery recharges when you come down the other side.

Teslas, as I understand it, can travel at full autoroute speed without losing too much range. Other, cheaper (but not cheap) electric cars are more like the Zoe.

What about recharging when far from home? This is, in theory, simple. There are over 28,000 charging points in France. Most small towns and many large villages have them.

A charging point in the Place de la Concorde in Paris. Photo: AFP

The problem is that they are operated by local or regional networks – or in the case of the super-fast ones, national or international networks. The prices vary. So do the connecting cables. So do the charging speeds.

Some order and common-sense has been brought to this jumble in the last year or so by badges or cards which give access to most (not all) of the charging bornes. I have joined Chargemap. Other cards are available.

In our Travels with Zoe, the cost of recharges at public bornes ranged from €10.26 to zero. The expensive one was in Perigueux in Dordogne. The free one was at a supermarket south of Limoges.

Free is good but we earned it by spending two hours of our Sunday in an empty supermarket carpark.

Lengths of re-charging time vary with the power of the borne. With our Zoe, a complete recharge at the most common points varied from four hours to two hours. At home it takes 12 hours. The new fast points claim to be able to recharge half a Tesla battery in half an hour.

Finding the bornes is, in theory, easy. There are several apps which list and locate them. In practise, they can be hard to spot. Once found, they are occasionally out of order or closed. In one town we visited, two charging stations were out of action and one had the wrong kind of connection.

For 1,777 km, I spent €26.54 on electricity. Of this €24.44 went on public charging points. The rest – €2.10 – is the estimated cost of three charges on house mains. By my estimate, a similar trip would cost €180 to €220 in petrol or diesel, depending on the size of the car. My estimated saving in autoroute tolls was €90.

On the other hand, the need to recharge for long periods meant that we spent three nights in hotels that we might otherwise have avoided. Cost: €300.

 

Conclusion one: The Zoe is not a car for speeding through France – and does not claim to be. It is a wonderful little car for care-free wandering carelessly La France Profonde (care-free but range-anxious).

For comparison, someone sent me an example of an 832 km Tesla journey in France which took ten hours with two recharges and cost €25.

Conclusion two: Buying an electric car – any electric car – is expensive and probably a bad idea. Their re-sale value is likely to be small as subsequent models improve.

Consider leasing instead. I did not buy my Zoe, I leased it – and its battery – for three years. I reckon that the saving in diesel alone has paid for the lease.

Conclusion three:  This time around, electric cars are here to stay. 

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