The History of Saab Automobile
Sweden’s Innovative Automaker
Saab Automobile AB, known simply as “Saab” to American drivers, was one of the most distinctive and innovative car manufacturers to emerge from Europe in the 20th century. Although it never reached the sales heights of giants like Ford or Toyota, Saab built a devoted following in the United States and worldwide thanks to its unique engineering philosophy, safety innovations, and unconventional styling. From its beginnings as an aircraft manufacturer to its eventual bankruptcy in the 21st century, Saab’s story is one of ingenuity, resilience, and ultimately, the challenges of surviving in a competitive global automotive industry.
Founding and Early Years (1937–1949)
Saab’s origins trace back to 1937, when the Swedish government founded Svenska Aeroplan Aktiebolaget (“Swedish Aeroplane Company Limited”) to strengthen Sweden’s military aviation capabilities amid growing tensions in Europe. The founder most often credited with spearheading Saab’s creation is Carl Gustaf von Rosen, a Swedish count, aviator, and humanitarian with extensive experience in aircraft design and piloting. Von Rosen’s background in aviation was instrumental in shaping Saab’s early engineering culture, which emphasized aerodynamic efficiency, safety, and precision manufacturing.
Initially, Saab focused exclusively on building fighter planes for Sweden’s air force during World War II. The company’s headquarters and primary factory were located in Linköping, Sweden. When the war ended in 1945, Saab faced a dilemma: peacetime demand for military aircraft plummeted. The company needed to diversify to survive.
Transition to Automobiles (1945–1949)
Saab’s leadership decided to enter the automobile market, leveraging its expertise in aerodynamics and lightweight construction. In 1945, a team of 16 engineers, many of them aircraft designers, began work on Saab’s first car. They built the prototype, known as the “Ursaab,” in 1946–1947. Its teardrop-shaped body was designed in a wind tunnel, a rare practice in the automotive industry at the time.
In 1949, Saab officially launched its first production automobile: the Saab 92. Powered by a two-cylinder, two-stroke engine producing 25 horsepower, the Saab 92 was distinctive for its front-wheel drive layout, aerodynamic body, and robust build quality suitable for Sweden’s harsh winters. The car was well-received domestically, setting the stage for Saab’s future expansion.
Growth and Innovation (1950s–1970s)
Expansion into Global Markets
During the 1950s, Saab began exporting its cars to other countries, including the United States. The Saab 93, introduced in 1955, added a three-cylinder engine and offered improved performance and comfort. American buyers were intrigued by Saab’s quirky styling, safety focus, and front-wheel drive—features uncommon among U.S. domestic cars at the time.
Motorsport Success
In the late 1950s and early 1960s, Saab gained international attention through rally racing. Swedish driver Erik Carlsson won prestigious events such as the Monte Carlo Rally in 1962 and 1963 driving a Saab 96. These victories boosted Saab’s reputation for durability and handling.
Safety Leadership
Saab was a pioneer in automotive safety. By the mid-1960s, the company introduced innovations such as energy-absorbing crumple zones, side-impact protection, and headlamp wipers—features that were rare or absent in most competitors. Saab’s aircraft heritage played a role; safety was treated as a core engineering principle.
The 1978 Milestone: Saab 900
In 1978, Saab launched the Saab 900, which would become its most iconic and best-selling model worldwide. The Saab 900 featured a turbocharged engine option, advanced safety features, and a wraparound windshield inspired by fighter plane cockpits. Over its production run (1978–1998 for the “classic” version, with later generations continuing to 2002), the Saab 900 sold over 1 million units globally, with approximately 250,000 sold in the United States. The model’s blend of performance, practicality, and distinctive style cemented Saab’s cult following in America.
Merger with Scania (1969) and Later Split
In 1969, Saab merged with truck and bus manufacturer Scania-Vabis, forming Saab-Scania AB. This merger allowed Saab to share resources and strengthen its manufacturing capabilities. However, the two divisions operated largely independently. By 1995, Saab-Scania split, with Saab Automobile becoming a separate entity once again.
General Motors Era (1990–2010)
By the late 1980s, Saab faced financial difficulties due to limited scale and rising development costs. In 1990, General Motors (GM) purchased a 50% stake in Saab Automobile for approximately $600 million USD. GM’s involvement provided Saab with access to larger production networks and shared platforms.
In 2000, GM acquired full ownership of Saab. However, GM’s strategy of platform sharing diluted some of Saab’s uniqueness, as models like the Saab 9-7X SUV were based heavily on GM designs. While this allowed Saab to expand its lineup, some loyal customers felt the brand had lost its distinctive engineering approach.
Hardships and Struggles
Financial Decline
During the 2000s, Saab’s sales in the U.S. and globally began to decline. U.S. sales peaked in the late 1980s and early 1990s at around 40,000–45,000 units per year, but by 2009, sales had fallen below 9,000 units annually. Contributing factors included increased competition from German luxury brands, a lack of new models, and consumer perception that Saab had lost its independent spirit.
GM Bankruptcy and Saab’s Sale
In 2009, GM filed for Chapter 11 bankruptcy during the global financial crisis. As part of its restructuring, GM decided to divest Saab. After failed negotiations with several buyers, GM sold Saab in February 2010 to Spyker Cars N.V., a small Dutch sports car manufacturer, for $74 million USD in cash and $326 million USD in shares.
Spyker Era and Collapse (2010–2011)
Spyker aimed to revitalize Saab with new models and a return to independent engineering. However, Saab’s financial position remained precarious. By April 2011, the company faced severe cash flow problems and halted production due to unpaid supplier bills. Attempts to secure investment from Chinese companies Pang Da and Youngman ultimately failed due to GM’s refusal to license its technology to Chinese owners.
On December 19, 2011, Saab Automobile filed for bankruptcy.
Factory Operations
Saab’s primary automobile factory was located in Trollhättan, Sweden. The plant was notable for its integration of advanced manufacturing techniques, including extensive use of robotics and a focus on quality control. Saab maintained relatively low production volumes compared to mass-market manufacturers, allowing for more attention to detail in assembly. The Trollhättan facility also housed design and engineering teams, fostering close collaboration between departments.
Marketing Campaigns
Saab’s marketing often emphasized its aircraft heritage. U.S. campaigns in the 1980s and 1990s featured slogans like “Born from Jets,” highlighting the brand’s aerodynamic designs and safety features. Advertisements frequently compared Saab cars to fighter planes, appealing to drivers who valued engineering and individuality over mainstream appeal.
U.S. Consumer Reception
In the United States, Saab attracted a niche but passionate customer base. Buyers often valued Saab’s safety innovations, front-wheel drive layout (beneficial in snow), and turbocharged performance. The brand’s unconventional styling and ergonomics appealed to those seeking something different from BMW or Volvo. However, Saab’s small dealership network and relatively high pricing limited its broader market penetration.
First and Last Models
Saab’s first production model, the Saab 92 (1949), sold approximately 20,000 units globally over its production life, with only a small number reaching the U.S.
The last new model Saab launched before bankruptcy was the Saab 9-5 (second generation) in 2010. Sleek and modern, it received positive reviews but suffered from extremely low sales due to the company’s instability—only about 5,000 units were sold globally before production ceased.
Most Popular Model
The Saab 900 remains the brand’s most popular and celebrated model. Over its two-decade run, it sold more than 1 million units worldwide and was especially successful in the U.S., with roughly 250,000 units sold. Its combination of turbocharged performance, safety, and distinctive design made it a standout in the small luxury segment.
Accomplishments
- First turbocharged engine in a mainstream car (Saab 99 Turbo, 1978)
- Pioneering safety features adopted industry-wide
- Rally racing victories in the 1960s
- Cult status among enthusiasts for unique design and engineering
Current Status and Outlook
After bankruptcy, Saab’s assets were acquired in 2012 by National Electric Vehicle Sweden (NEVS), a Chinese-backed company aiming to produce electric cars based on Saab designs. NEVS initially planned to relaunch the Saab brand, but by 2014, it lost the rights to use the Saab name due to restrictions from Saab AB (the aerospace company still in operation).
NEVS has continued to produce electric vehicles in the Trollhättan plant, but these are not branded as Saab. As of 2024, Saab Automobile no longer exists as a car manufacturer. The Saab name survives only in the aerospace and defense sectors.
From its founding in 1937 as an aircraft manufacturer to its demise as a carmaker in 2011, Saab’s history is a testament to innovation, resilience, and the challenges of remaining independent in a globalized auto industry. In the United States, Saab earned a loyal following for its quirky, safety-focused, and turbocharged vehicles—cars that truly stood apart from the mainstream. While the Saab badge has disappeared from new car showrooms, its legacy endures among enthusiasts who still treasure the brand’s unique spirit.
