For Profit: Spyker Shifted Production From Zeewolde Last Year; The Same For Trollhattan In The Future?
By Gunnar Heinrich
FUNNY, I thought Britons went to Holland to buy cars and not vice versa.
Not with the current weak sterling to strong euro exchange rate which was, apparently, part of Spyker CEO Victor Muller’s decision to up manufacturing from the now-well-publicized Zeewolde, Netherlands to Coventry (home of Jaguar).
The Dutch flight to Albion had to do with business logistics and to “secure the future of our business,” Mr. Muller told the Telegraph. Spyker will be moved near its main supplier CPP Manufacturing.
The November 20th, 2009 press release echoed this rationale:
“By relocating its assembly lines from Zeewolde to Coventry, Spyker will achieve considerable improvements in efficiency and substantial cost-reductions [...] With approximately half our vehicles’ parts and components sourced from the UK, and virtually all key suppliers being located there, moving closer to our suppliers and engineering partners will result in substantial savings and tangible efficiency improvements.“
In a few years time, might we anticipate the same from Spyker management in moving more of Saab manufacturing from pricey Trollhattan? It’s reported that 45 out of 135 Dutch jobs were lost in the jump to Old Blighty.
[Source: Daily Telegraph]
About the Author: Gunnar Heinrich is publisher of Automobiles De Luxe online and is executive producer of the Automobiles De Luxe Television series on PBS member station CPTV.
Swade | Jan 27, 2010 | Reply
G,
Muller has come out himself and emphasised the importance of Sweden to Saab’s identity and DNA.
But even going by your quote above, Saab’s suppliers, engineers, etc are predominantly in Sweden. They don’t need to move to be close to them.
With regards to Trollhattan being ‘pricey’ – I don’t believe it’s any more so than Russelsheim, which is why Trollhattan was awarded Delta vehicle production over three other GM plants a few years ago.
Bringing the 9-5 back and maximising the use of the plant will only improve the scale benefits.
Gunnar | Jan 28, 2010 | Reply
Steven,
I share your optimism for Saab and do recognize Mr Muller’s enthusiasm for the marque. But I’m also cautious. Part of the whole save Saab movement was to save the core Swedishness of the company which meant preserving the workforce in Trollhattan. I’m wondering how long Mr Muller can make good on his word to keep the jobs there and achieve profitability. Surely, it would be cheaper tp build a 9-5 in China, for instance.
At the end of the day, will Saab just be Swedish enough if the cars are designed in Trollhattan? That’s a question rival Volvo is about to address. Let’s not kid ourselves that Saab won’t have too at some point, too.