Australia’s no a real setback for Saab “- Swedish newspaper Svenska Dagbladet

Australia's no a real setback for Saab "- Swedish newspaper Svenska Dagbladet

About the man from Swedish perspective to take the negative first is obviously quite serious when Australia’s current leadership dismisses the Swedish alternative. For the allure of an Australia Business lived in the highest degree when Saab last summer took over the Swedish submarine operations at Kockums.

The deal was driven by the Swedish government and was a result of the Swedish politicians then again decided themselves to the submarines were important to the defense. It did not in previous years when the disarmament begun by the Soviet Union.

But the development of new submarines are very expensive and then wish to have someone to share the cost with. All eyes fell understood against Australia and Sweden previous close collaboration with the submarine area.

Moreover, Australia launched a gigantic program to acquire new submarines. And Buskhe, CEO of Saab, spoke hopefully about to stand for sale.

Saab hopes to be part of a big deal now been reduced significantly. In addition, risk Swedish government to miss out on an important partner who can join and split the cost. A deal with Australia would also strengthen Saab and Sweden’s position as a great partner in other submarine business.

But anyone looking for something positive can also point out that this is not about some common business. This concerns the defense industry where the cycles are extremely long (it took for example, Saab more than 15 years of work to get the contract to sell the Gripen fighter aircraft to Brazil) and where political involvement is crucial. It also means that there is still much before the deal is done.

Australian Prime Minister Tony Abbott pushing hard line that the country should buy submarines from Japan. He sits there might have like but it is also a strongly challenged Prime Minister who just managed to survive in his post after an internal revolt. In addition, Australia reasonably have time to have a new choice before any contracts signed.

Both in Japan and in Australia, the resistance is also hard on this deal. The Japanese military is reluctant to sell so sensitive systems such as submarines and in Australia, the pressure is hard at getting another solution that provides manufacturing and jobs, mainly in Adelaide.

This means that the focus if so directed more against the French and especially German option. Just as Saab, they must demonstrate that they can really bring out the new large submarine that Australia wants and that in itself is a process that is far from complete.

So the game is far from over, but there is no doubt that Saab and Sweden’s position weakened considerably.

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