Swedish car makers Volvo and SAAB are having difficulties. Volvo because of its owner Ford is in difficulties and SAAB because they can’t make money and their owner GM has cut the financial cord. SAAB is now under a formal restructuring and haves three months to come up with a plan for the future. During the three months no or few suppliers and creditors are getting paid.

SAAB seems to be in deeper problems than Volvo, but why? To give my input to that question, I start with my personal view. I drive a Swedish car myself - a Volvo. Why Volvo and not SAAB? Well, I like both Volvos and SAABs, but I have never seriously considered buying a SAAB. Basically I like the exterior design but the interior design is just too weird for me. And even though the materials are of a good quality, like in Volvos, I don’t get the same feeling of driving a luxury car when I drive a SAAB as when I drive Volvos. I know that SAAB for many years has told us that the instrument and center console layout and design are based on their many years of experience from the plane industry. But it still looks too weird to me - regardless how user friendly and logical the layout may be.

SAAB has for many years only had two models. The 9-3 and the 9-5. Volvo on the other hand has several models to choose from. From the small C30 - over the XC90 SUV - to the top model S80. Volvo has for many years been able to develop cars that reflect the trends. Volvo launched its first Cross Country (crossover) model in the late 1990s with the Volvo V70 XC (2.5 cm higher ground clearance, big bumpers and rough look). It was the beginning of a new line for Volvo, which today includes the models XC60, XC70 and XC90. The models became popular and other car makers like Audi followed with similar versions of their cars - starting with the A6. Do I have to mention, that SAAB not yet have launched their Cross Country-type model?

Volvo has renewed themselves several times when it comes to design, market segments, technologies etc. It’s like every new model is a new statement of where Volvo wants to go next - without losing the historic roots. The new XC60 and the coming S60 are not cars you would have expected from Volvo in the boxy 1980s or 1990s. Neither is the floating center console, which was introduced in the S40/V50 and now also is in the top model S80.

Volvo is owned by Ford and of cause Volvo uses components from Ford. But not in the same way SAAB has to use GM (Opel) components. Where SAAB in my opinion has suffered strongly from the ownership of GM, Volvo has kept its own identity and independence to create their own models. You will only find the Ford engines in the smallest Volvo series.

In my opinion it’s Volvo’s ability to innovate and renew themselves, and SAAB’s missing ability to do that, that is the difference between the two car makers.