How Turkey’s Deal to Build a SAAB 9-3 Impacts the Auto Parts Market

How Turkey’s Deal To Build A SAAB 9-3 Impacts the Auto Parts Market

A government agency in Turkey has purchased the intellectual property from NEVS to build a new generation of the Saab 9-3. Turkey intends to use this technology to build an electric car that will be sold nationally. To best serve Turkish car buyers, it’s critically important for Turkey to also create a Saab parts distribution system.

Saab’s business

Saab Automobile was founded in 1945. This manufacturer produced cars with a focus on minimizing the impact on the environment. National Electric Vehicle Sweden (NEVS) bought the original company’s assets in 2012, when Saab was struggling financially.

The new and improved Saab 9-3 model was a big seller, and Saab sold out of all their 2014 models in Sweden. In addition, Saab has direct relationships with retailers and distributors who provide 9-3 Aero parts for its older and newer production years, and various body types and engine sizes. These retailers – both online and physical stores – are crucial to Saab’s distribution system as they provide the necessary genuine, OEM and even aftermarket replacement Saab parts to repair shops, car dealerships and individual car owners.

Turkey’s Saab production plans

In the fall of 2015, a Turkish government agency (TUBITAK) bought the intellectual property rights to build their own second-generation Saab 9-3. Turkey plans to build its own electric version of the car by the year 2020. The country intends for this version of the 9-3 to be a national car.

Turkey initially tried to design and build a national car from scratch. The agency decided that it would be more cost effective to buy automobile and parts knowledge and technology from an existing car company.

In addition to providing intellectual property, Saab will help develop a supply chain and parts distribution chain. Turkey intends to produce 85-90% of the automobile’s component parts within the country. This supply and parts distribution development process has several aspects:

·  Raw materials: Once the design of the new car is decided, Turkey and Saab must determine where they can buy raw materials for the car and its parts, such as steel, aluminum and plastic.  Once the suppliers are identified, the materials must be shipped to the Turkish production plants by air, sea, railroad or truck.

·  Car dealerships, as well as body and mechanic repair shops will need a steady supply of auto parts in order to repair and maintain the cars as needed. Many of these businesses want to provide OEM and genuine Saab parts because these parts are the best fit for each vehicle, and thus the most reliable. Turkey must be able to manufacture cars and produce enough replacement spare parts for maintenance and repairs.

·  Repair logistics: The logistics for replacement parts delivery are far more complicated. Saab may have thousands of locations in Turkey that need parts on a continual basis. Since drivers want their cars repaired quickly, there must be a delivery system in place to order and deliver parts efficiently.

·  To keep up, Saab will need to distribute parts over the Internet through retailers like eEuroparts.com. This modern form of distribution will meet the needs of individuals who do their own maintenance and repairs on their beloved cars.

·  Turkey must have a system in place to periodically inspect Saab vehicles that are on the roads. An inspection system will ensure that the cars are being maintained and repaired properly. This process will increase safety for both Saab drivers and other people on the road.

The distribution system for the Turkish car model has not been finalized. This system must be put in place, or consumers will not have confidence in the new car line.

The parts system must also be in place before any of the new models are sold in 2020. If Saab can provide sufficient training in vehicle and parts manufacturing and logistics, Turkey will be able to meet the needs of its citizens who purchase its new electric car.