Saab Combines U.S. Operations Into New Company




By Brett Davis



Sweden’s Saab announced a major reorganization of its United States operations this morning, as it seeks to take a greater bite out of the U.S. defense pie and partner with American companies hoping to sell their wares abroad.



Saab has set up Saab Defense and Security USA, the consolidation of the former U.S. subsidiaries Saab Training USA, Saab Barracuda, Saab Support and Services and the defense elements of Saab Sensis Corp., which markets radars and sensors to both the military and commercial markets.



The new company will be Saab’s main corporate face in America and will operate under a special security agreement with the U.S. Department of Defense, Saab officials said at a Tuesday breakfast meeting with media. Saab North America will still represent the global Saab company, but Saab Defense and Security USA will be U.S. based and U.S. managed and will compete as both a prime defense contractor and partner to other top-level contractors.



John Ballenger, head of communications for Saab North America, said the move builds on three years of increasing company involvement in the U.S. defense market. Although it is facing a budget squeeze “it’s still a large market, and we think we have a lot of value to add. … If we can gain 1 or 2 percent of that market, that’s great for Saab globally.”



The company has been buying and turning around U.S. companies in recent years, including the formerly struggling Saab Sensis, which makes radar systems for military, civil and commercial users, including the U.S. Navy and the State Department. 



The revamped U.S. operation will continue seeking companies to buy, says President and CEO Lars Borgwing, the former CEO of Saab Training USA. It will also continue its push to leverage its Swedish technology — including in unmanned underwater vehicles — for the U.S. market and team with American companies who need help in marketing their wares abroad.