I guess I better start this by revisiting the basics of the plan that Dagens Industri claim to have got a copy of.
The 3 phases for Saab:2010-2011: present phase
- 115.000 cars sold gives break-even financially
- Average price per car: 189.000 SEK
2012-2015: transformation phase
- 80.000 sold cars gives break-even financially
- Average price per car: 208.000 SEK
- New models including a 9-5 Koeningsegg Edition
2016 - : premium phase
- 65.000 sold cars gives break-even financially
- Average price per car: 280.000 SEK
- New models including a New 900
NOTE: A note on the monetary amounts mentioned here.
This comment was from 'R' in the original article. 'R' is a Saab dealer.
The prices mentioned are ex SAAB and therefore need to be increased by 1.4 plus country taxes to find the retail customer price. Thus the retail prices will be cost ex SAAB plus 55% to 60%
Hopefully that gives you a better idea as to what those figures mean.
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I'll be honest with you....
My first thought after reading this was to wonder if I can afford to be a Saab enthusiast any more. I was hoping to buy my first ever brand new Saab in about four or five years from now but with these plans, it looks like I'll be a second-hand buyer for the rest of my life.
But as long as they build cars in the Saab tradition, that's fine. There'll be enough new buyers out there for them not to need my money. I hope.
Getting beyond my own circumstances, I guess I would say that my own reactions were mixed.
The excited
With this deal on the verge of being done, who can't get excited to finally see some flesh on the bones of what we've been reading about the last few months?
GM chose to sell Saab just at the time when they had a bunch of new models about to come online. Realistically speaking, Koenigsegg couldn't have got a better situation if they'd have scripted it themselves. GM pour the resources in (finally) just when they're about to give it away.
The move to a more premium sector is exciting, as well. It means even better cars with even better materials - albeit at what will probably be higher prices. I have a feeling the prices won't need to rise that much on current models, though. What we should really see is a slight price rise with a reduction of the incentives offered for purchase.
Of course, the things one should get most excited about are the cars. A Koenigsegg-Edition Saab 9-5? Woohaa!
And having we all been asking for a new car that really does follow in the very long shadow cast by the Classic Saab 900? Could they really do it?
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The skeptical
The snag in this plan for me is the timeframe. I don't know how 189,000SEK per car (for 2010 and 2011) on a wholesale basis compares with what they're currently making. I assume it's a raise.
The plan says that they need to sell 115,000 cars per year in these two years, at that price, in order to break even. Now it was only 2 years ago that Saab sold around 125,000 cars in a year but that was then, this is now (thankyou S.E Hinton). Saab have since sold 93,000 vehicles in 2008 and will likely sell something in the order of 45,000 vehicles in 2009 - if they're lucky.
Saab will have a new 9-3x, a new 9-5 wagon and combi, and the 9-4x come online in the 2010-11 period. But they won't all be for sale for the whole period and then there's that pesky separation from GM issue, and distribution, and marketing, and consumer concern.
Companies don't just double-plus their sales overnight. I can't help but feel that breakeven is going to be pretty hard to achieve in this timeframe and that the new owners are going to have to kick some money in to really get this plan moving.
Companies like Hyundai and Subaru have built their recent stellar success on 20 years of continued improvement. There's no such thing as an overnight sensation in the regular passenger car industry. Not yet, at least.
The practical
Some have decried the move upmarket, but I say Saab should go for it. Being average hasn't exactly helped them. Back in the go-go 1980's, Saab's were premium vehicles. They were at the forefront of new technologies, had comparatively luxurious interiors, great driving characteristics and a great looking, four seater convertible.
Yes, they had more plain options available, too, but a move to the premium sector now would be bringing Saab back to a place that they moved into back when things really started to get going for them around the world.
The other element in this is that with low volumes, they really have no choice but to move upmarket in order to charge enough for their cars so they can make some money. Saab will never be a company that makes and sells millions of cars per year. Nor would I want them to be.
I'd love to see Saab return to being smart cars for smart people. Call me snobby if you like, but the fact that I don't see my car replicated at every set of traffic lights feels good to me.
The speculative
As I mentioned earlier, you don't go from being a company with a doubtful existence to a sales renaissance overnight - not without some serious help.
The Koenigsegg name hasn't been the blessing that we thought it might be. Not yet, at least. In fact, it's been somewhat of a hindrance due to their perceived inexperience, which has been seized upon by the press and the politicians for some time now.
So in order to kickstart some serious interest in the company, they're going to need to do something seriously special. Marketing's one thing, but there are no guarantees there and they can't go taking a marketing plan to the bank.
Like everything else in the car industry, this will come down to one thing - product.
Koenigsegg want to sell Saabs for more money than what they sell for now. Quite a bit more. What they need is some sort of incredible infusion of product. Something that will get the people buzzing and wanting - really wanting - Saabs again.
Hybrids and electric Saabs are one thing and there's plenty of talk about them being on the mid-term agenda. They're going to command higher prices but they're also going to cost more to produce. The question is - will they produce so much extra demand that the effects will spill over to other models?
I think the Koenigsegg influences in this organisation will more likely revert to type. They make exceptional performance cars for a living and if you want to create some desirability, then there's nothing like an exceptional performance car.
A Koenigsegg Edition Saab 9-5 will be a good start, but I tend to think there's something more to this.
Here are two things I've heard in the last six months. One from a very credible source and the other from two third party sources.
- Saab's concept cars in the last 10 years have all been realistic bases for production vehicles. Yes, they were concepts and were futuristic, but they weren't fantasy.
- I've heard from two separate sources who don't work with Saab but have been talking with people who are connected there, and both have said quite independently of one another and unsolicited from me, that there's favourable opinion within the organisation for building some sort of production version - limited numbers only - of the Saab Aero-X.
I realise that's a very big call and I do not know how much credence to give it. I can only pass on what's come through to me. I do not believe that a production version of the Aero-X would feature the canopy roof, but we all know that Koenigsegg know how to make performance cars happen and that Saab can do engineering as good as anyone when they're let off the leash.
If Koenigsegg really want to grow the Saab business, to bring about some serious and credible coverage - enough to re-engage clients who can contemplate a more expensive Saab - then they're going to have to swing for the fences.
A campaign like the Alfa Romeo 8c Competizione would go a long way to raising Saab's profile. The Alfa has the looks and the sound, but reputedly doesn't quite have the driving experience to match. If Koenigsegg and Saab could bring about the whole package - remember, it's about the product - then they'd capture plenty of imaginations.
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One thing's for sure. The next two years are going to be a whirlwind for the people at Saab and the customers trying to figure out when and which Saab to buy.
If this Dagens Industri plan is reliable then we're definitely in for some interesting times because Saab are going to really have to pull a rabbit out of their hat to get this done.
You will have to remember that the 9-3 is the volume model, the current 9-3 is old and its age is showing more and more. The all new 9-3 will not arrive in the 2010-2011, and I think it's rather naive to believe the new 9-5, 9-4x will make up for the dropping sales figures for the "old" 9-3.
In reality I think Saab will be happy if they will be capable of selling 80.000 cars in 2010.
The plan seems very optimistic, a best case scenario more than a worst case scenario.
Going premium is nice, but I hope Saab remembers that "premium" is so much more than a high price tag!
Something like Citroen will do with their GT concept, make a 20-car limited run of their supercar.
I'll repeat it here. It's from a Saab dealer and was mentioned in comments to the original article.
I hope that helps.
They may be expecting to sell more 9-5 and 9-4x which are the more expensive cars. Customers tend tu top up their cars with more gadgets when available so that might put the average higher, too.
Then some extra models like the 9-5 K-Edition which may be pricy.
Maybe there will be a wider price range among the 9-3... we just don't know but I think if they really bring on premium cars they have to adjust the price tag.
It may be bitter but Saab has to survive and therefore they have to earn some money.
Yes, Saab in the past had a motor sport heritage with rallying but this does not have the kudos of main stream motor racing. Furthermore this was decades ago and the customers who were there have disappeared.Ask someone about rallying today and they think of Citroen,Ford,Subaru etc and they are not premium!
If Saab is to survive and I wish it will it needs a premium SMALL car, a 9.1,and something to give it the volume to not only make the factory profitable but also its dealers. Without dealers there are no sales and without the necessary competitive product and volume there will be NO DEALERS!Franchise dealerships cannot survive without a realistic volume. Aftersales is a fundamental necessity for dealership profitablity and small volumes/high prices will not succeed in the short term - and 2 years is the short term in the motor industry. A brand if it wishes to go upmarket takes years and years and usually unfortunately fails - e.g. Renault, Peugeot, Citroen,VW. The opposite is the norm - Bentley, Jaguar,Land Rover, Audi, Mercedes etc The only exception in a way was Lexus but this is a completely new brand. Although a sister company of Toyota it is a separate marque and even this brand has not been that successful in Europe.
Saab has a heritage but it has never been premium and it must earn its colours to enter the premium sector. This could never have been the case under GM control but this business plan seems a wish not a reality.If they only produce 45,000 units this year then a 50% increase next year will be a gigantic step forwards, and an increase of 25% for the next two years may be attainable. Without a small car in one's arsenal in today's world economy seems to be a very foolhardy decision.
I wish Saab well but I fear they will never succeed with this plan!Unfortunately it may be too late to go back to the drawing board but who thought up this idea in this economic climate? What other manufacturers are moving up market today - NONE!
Of course, they will still need solid distribution in order to achieve this, and Saab's network in many major markets is in tatters.
One thing that hasn't been made clear is whether or not Saab plans to offer a smaller car. I know the average selling price will go up, partly because of the new 9-5 outselling the old 9-5, and partly because of halo models, but I still want a Saab that's not as big as a boat. Even the 9-3 is bigger than what I really need, and the compromises involved in a bigger car aren't to my liking: more weight, bigger engines, sluggish response, less feedback, more electronics to compensate for humans' inability to control a two ton barge in difficult conditions. I could really go for something in the same size/weight class as the 99. As Swade recently demonstrated, you can carry almost anything you would want to in one of those.
I'm not in total agreement though with Koenigsegg's plan to raise prices of Saabs, while selling less of them. Especially, raising them to try to keep up with the German rivals. Why raise them at all? One of the main complaints, is the asking price or MSRP of a new Saab. I do believe the materials (mainly interior), could use more upscale parts and components; but if the price is raised, it SHOULD be to (justify) and cover the costs of better materials, that's it.
I too have mixed feelings about this plan, especially the price hike. However, the upshot of this is that for such a plan (or, really, ANY plan) to work, they will indeed need to build some standout, different, and *cravable* aspiration product.
That means they will really need to define, clarify, and explode the Saab brand, and that will be fun and exciting, because certainly putting a generic "upscale" gloss on the current product themes won't do the trick. I really the quote "smart cars for smart people..." That should be up in every cubicle in Saab HQ... On the flip side, that's going to be very hard to do in our current age of techno-gluttony in even entry level cars. I'll settle for "Clever cars for smart people."
We are going to see some beautiful cars coming out soon!
Cadillac turned around in a decade, after languishing for what ..... 30 years ? Buick .... work-in-progress. Hyundai started from scratch, but give 'em another 5 years. So I say let's not be cynical of SAAB. As long as K-egg stands behind them 100%, with lots of TLC and nurturing, SAAB can become a higher-end boutique brand.
Saab has but one alternative: go back to racing.
Racing victories mean more than millions spent on Madison Avenue marketing campaigns. As they say in NASCAR, "Win on Sunday, sell on Monday". Saab could take a couple of Turbo-X's, race-prep them, and get back into rallying. Then come out with a new 99 (don't call it a 9-1) and design it for rally victories. With some successful years, then customers will be more willing to part with greater amounts of cash for 'premium' Saab products.
To produce new vehicles a 3 year gestation period is the minimum time required. The market place is changing daily with eveyone "going green" so please Saab don't try and invent a "new" wheel. We all know what is required A SMALLER SAAB with a premium feel at a REALISTIC PRICE! And soon!
Or by including more equipment that is presently optional, as standard equipment (like Jag did with the XF and Citroen with the C6)? Then, not much of a change either for those already nowadays getting a lot of options for their cars.
Or, as most of you seem to imply, by repositioning Saab somewhat higher in image, by -well by providing what? More technology? More sophistication? Or simply by nothing except changing the price tag? This would probably turn out to be a problem, provided Saab isn't as prestigious as e.g. Jaguar or Mercedes.
Presently, we just don't know.
Cheers/Tom
I really think Saab needs to one-two punch with a new 9-3 and 9-1 to truly get it back in the minds of people. As much as I think the 9-5 and upcoming 9-4x are great cars, they are not going to put Saab on the map. The older people that are buying their BMW 5 or Audi A6 are not going to be swayed. Its the younger people that would potentially give Saab a chance with a 9-3 and 9-1. Become loyal fans and then later upgrade to a 9-5.
And be realistic about the prices. I personally think they need to come down at this point before raising them. Right now the dealers have thousand upon thousands on the hoods of these cars.
And its just not smart right now to buy a NEW Saab. The value just isn't there. There is a 2008 Turbo X, with 10k miles on it and the dealership is wanting 28k for it (and they seemed quite eager to negotiate further down from there). It was originally sold for 43k. So in one year it dropped 15k in value. That is ridiculous.
This plan, just has failure written all over it to me.
Unfortunately the lack of product and poor press this year can only have an adverse effect on where the consumer will put Saab on his/her shopping list.
We need some good news soon but if this is indeed the "plan" then we shall all need a lot more than good news. I cannot see how it can be achieved. Again I reiterate Saab needs a small car yesterday to survive in this industry.
Why the c**p would they not make it? Have some faith for goodness sake.
Keep it up all you fellow believers! I´m with you and Saab and not the doomsday agitators.
Cheers/Tom
2. I think Jaguar is also moving up market (focusing on XF, XJ and XK). In some ways due to the same reality Saab is facing, with a new owner who's not bringing large, midrange platforms.
Why the c**p would they not make it? Have some faith for goodness sake.
Keep it up all you fellow believers! I´m with you and Saab and not the doomsday agitators."
>>> AGREE WITH YOU 100% <<< Well spoken, Tompa!
Or quicker yet, just re-badge a few CCXs by plopping in the 3.0T V6s, Hirsch'd up to around 400-500hp, put in central ignition, waffle/joystick air vents and VOILA !!!
^ +100 with Tompa and Ralf22.
Bear in mind that DI is more or less a tabloid and whatever truth there is in the plan we should not take it all as the whole truth.
The plan says there is a need for 115 000 vehicles each year 2010/11 to break even.
K-G has stated that they expect not to break even or be profitable before 2012 - or am I missing something ?
The plan says they will need 80 000 (2012 to 2015) to 65 000 vehicles (2016 - ) from that on to break even.
The plan says something about the average price, but does the plan say anything on how much they plan to sell? Or what they plan to sell?
JAJ have said earlier that they needed an entry level small car to get premium buyers later on in their lifes.
Does the transformation phase mean that there will only be premium LARGE cars after that ? I'll guess not - and I'll not take DI's word for it.
The earlier plans was deemed out several times by Maud's department - this is what they ended up with.
But one thing... Di is not realy a tabloid. But they can make a blooper now and then for the quick buck.
Cheers/Tom
Looking at the average for 2016 gives us this (excluding country taxes of any kind): 280,000 SEK @ 6.901 SEK/US$ (today's exchange rate) is US$40,572. Adding 1.4% gives $42,195; using 40% instead gives $56,800.
Of course, those are in 2016 dollars. Assuming 3% annual inflation (this percentage is high given the current state of the world economy, but inflation may grow over the 6 years between now and 2016), we can compute these "upscale" prices in today's dollars: $36,400 (1.4%) or $49,000 (40%).
For the curious, the 189,000 SEK average selling price for 2010 computes to $28,500 (1.4%) or $38,340 (40%). The "True Average" at TrueCar.com shows the 9-3 sedan selling for $28,913 to $46,817 today; the 9-5 goes from $37,349 to $43,183 (starts above the 9-3, ends lower).
No one wants to have to purchase USED for the rest of their natural born life. I see nothing wrong with that thinking. But some cars can be simply out of reach, price wise. Some acceptable and logical, some not.
Come on, let's just see eh? Stay the course, folks.
One cannot run a vehicle manufacturer on faith. There has to be a viable business plan and this "plan" ,unless the main contents have not been disclosed ,does not make financial sense.
I know and appreciate that Saab has never followed the main stream; it has had poor investment from G.M., but the reality is that it has to make profit. Producing high value products in this economic climate when it has not yet reached the "premium league" is at best foolhardy. Again I ask KSegg to think again and invest in a SMALLER SAAB with a PREMIUM feel at a REALISTIC PRICE.
Without this investment in a smaller car the brand may not be with us in 2/3 years time. This I do not wish to see, so I can only hope that this "plan" is not the whole story.If it is..........?
1) The maximum price tag for a company car in Sweden (this is a major part of Saab sales here in Sweden) is about MSRP of about 320.000 SEK. Saab is VERY unlikely not to provide a reasonable car below this volume.
2) Saab has developed a lot of technology for GM that they haven't been allowed to put in production yet. Some of that will change with the new 9-5. Getting the customers to pay for more options seems to be an obvious way to increase average price to me, and a lot easier when GM is not around.
These figures and statements are out of context so don't read so much into them folks.
The past decade of total GM ownership has devalued the Saab brand badly and Koenigsegg have to fix that before they can move forward. I'm afraid selling a handful of old concept car copies to bump up the image won't cut the mustard. A lot more work is needed.
Personally I think it'll take ten years to move Saab upmarket. The NG9-5 has moved slightly upwards in price, but this is largely because it's now in a bigger car class. The 9-4x is mostly irrelevant because it is a GM product made by GM and whilst it could sell reasonably well in the US, it probably won't anywhere else,and it will be more profitable for GM than it will be for Saab. Being a GM product, I think the 9-4x will hinder Koenigsegg's attempts to move Saab upmarket. In the coming years, Koenigsegg will certainly try to portray the Saab brand as being "much less GM", but the 9-4x will keep bringing it down to earth.
PRICES ARE MARKET PRICES!
I'll be honest. Last time I bought the Saab, I seriously looked at a BMW 3, an Audi A4, a MB C200, a MB B200Turbo and an Opel Vectra turbo. If Saab had had a pricing level 33% higher than now, I probably would have made another choice.
My only hope for the scenario as scetched in swades story is that Saab manages to get people mad enough to buy more gadgets. Also the model mix can move upscale (more top of the line 9-5 and 9-4X). selling 9-3X in stead of standard 9-3 also helps.
2.On the other hand in days of economical crisis it is always a better idea to sell with good margins to people who have money rather than attract more people with lower price. It is the right decision to go upmarket (if we really believe that the bad days will continue for the next decades) but to get there Saab will need much more time.
3. If they succeed I expect the SU site to split into SaabsUnited and ClasicSaabsUnited. The guys who can afford KSaabs will read and comment on the first one ( or they won't as I don't expect the poeple who switch to Saab from MB, BMW or Audi to be really enthusiastic about Saabs) while the communication between the majority of us will take place on the second site. I am not in position to buy new cars and reading the business plan for Saab I can see no chance to buy a second hand post GM Saab in near future. So my next car won't be a Saab for sure....
Without sufficient volumes, Trollhattan will eat Saab alive. Thus, "competitive" rather than premium price will be important. The China plant is a wrroy for Trollhattan if Saab are made for export out of China. No more lost jobs please.
Lastly, Saab should give Swade the Saab of his choice (sorry, new, not out of the Museum) and continue every few years for as long as he promotes the site. He deserves no less.
$40,000 means a bunch of 9-3s in the 30-40K range along with 9-5s 9-4s and convertibles, all above 40K. A Koenigsegg 9-5 will easily sell for more than twice the price of a base 9-3, raising the average price substantially.
I really hope saab manages to become the induvialists alternative to audi or bmw. Or isnt that upmarket enough? Why are everyone so worried? Im worried the plan is to make saab a Jaguar. Im very confused here.
It seems you are not very passionate about Saab so why do you hang here?
R2, in fact, has a long association and a lot tied up with Saab. More than most, in fact.
;)
I've always had to purchase "previously owned" Saabs and probably will have to in the future, but that's okay....as long as Saabs continue to kick arse!
I still love driving the only US 03 SS TiD. But I hate the seats in warmer weather. They need the ventilated seats. I was blown away at the auto show last year. A $20K Saturn/Opel had them a few meters away. An Opel Astra would make a good basis for a 91.
Hatchbacks or notchbacks and wagons for 95 need to go into production this year. KSaab does not have the luxury of a couple of years. They need serious cash flow NOW.
Diesels and a rear-drive electric hybrid option need to happen ASAP.
Selling competitive product at close to current MSRP is more important than packing interiors with idiotic gizmos for another $20K.
Smaller engines(about 1.5 liters)with the usual Saab ferocity are needed.
Koenigsegg could also chase Ferrari, Lambo and Maserati now that theyve got an assembly plant.
Saab's "image:" Of the people who know Saab at all, one of the two groups of people I know is in the 55-70 year old demographic. These were the people who fell in love with the 900 in the 80's, next bought a 9000, and now are on their second or so 9-5. They love the engineering and the comfort, and can't talk enough about their cars' seats and features.
The second group is about 30-45. They want to show they are hip and sophisticated, but feel VW is too downmarket and BMW/Audi too "me too." They usually own 2.0T 9-3 Sportcombi's festooned with bike racks, ski racks, and bumper stickers.
A third subgroup are a large number of college and grad students driving high mileage, late 90's 900's/9-3's who love and virtually live in their cars.
I think it's actually the current third group that the Saab of 2015 has to be chasing. This is the group that will have fond memories of their hip, reliable Saabs and will go for something standout and expensive rather than buy an Audi S5 when they get that big paycheck...
Again, that's Saab's challenge. The new 9-5 looks great, don't get me wrong, but it's essentially a "me too" car... A patterned Euro-saloon with a Saab flare. Saab needs to totally break out of the BMW/Audi/MB model mold and do something bold and different to sell those 65,000 of the future...
My 9-5's blow that car away in every category.
In other words, the car market is totally different than it was way back then.
a new 900 would have to be some seriously fancy-assed car to reclaim the old 900's place in the market, and perhaps that's where they're headed with this.
also, I don't see anything here about limiting production, only at what point they would break even.
and btw, what does koenigsegg get out of this? I don't see how this deal makes sense as a one-way street bent only on improving the SAAB.
This is just how I feel right now. I have reached a stage where I would hate to see my heirs spend what I left them, on luxuries I have denied myself. How long must I wait for the new 9-5, and will they have a dealership nearby? I have looked at the Audi, BMW and MB alternatives, such as the new BMW GT hatch and Audi A5 hatch but they will never be ME, or suit my personality the way Saab does. I am now prepared to spend 100g, and bugger the relatives. Saab IS upmarket for me anyway.
Arnold
Maybe one thing Saab can learn from the Germans is offering so many gadgets that the sky is the limit for the price... for example offering individual colors (you could let the car color after your wife's fingernails) and charge 2500 Euro for that. Saab should still remain weel equipped in base level but they can offer many things like a head up display that bring more money. If you don't need it, leave it and you save some money.
So to me the plan is more about getting customers who are willing and able to spend quite a bunch of money on ther cars. And in the end the second hand buyers will have great cars, too. Just without the financial loss of the first years...
@Arnold: That's the core point fo me, too. Ever since I sat in my first 9000 the car just fit me. And it went on with my 9-3s and my 9-5. I don't know if Saab is already upmarket and in fact I don't even care, it's just the perfect car for me.
I wish SAAB every success. What I can't see is this plan succeeding if the contents given are the main points. I feel others may agree with me, but unfortunately you do not. That is your option and I respect it although I may beg to differ.
Let's hope there is more to the plan, a smaller car etc, and let's see Saab survive.
Thanks Swade for all your hard work with Saabs United and for giving us this forum to talk SAAB.
Di may have got their hands on a leaked plan but maybe it's intentionally leaked for SAAB to gauge the reaction.
My point is don't read too much into it because there just isn't enough info as to why the prices are increasing.
That said....
SAAB needs to be a premium player and premium I mean as the a dictionary interpretation. To charge a premium for ones product.
SAAB has a massive advantage at the moment by only building 100 cars a day. It means that if the marketing dept. do their job correctly demand will be higher than supply. With stocks near on depletion, buyers will have to choose between a 4-6 month waiting period or buy a nearly new car off the forecourt if they want a SAAB. For those who are just after a cheap car may well shop somewhere else. Those who want a car that looks better, drives better, than the majority of cars will likely stick around.
You then have the loyalists who will pay the premium to get a SAAB because they will not drive anything else.
This is basic economics of supply and demand. GM have usually always tried to push the side of the scale where supply out strips demand. Where as the economics I was taught in its most basic form was you push your prices to the limit where demand matches your supply.
A slight difference but a fundamental one. the latter producing the highest amount of profit from the least amount of supply.
This type of marketing creates demand without having to offer incentives. It forces some customers to buy used which will increase residual values but what will happen in SAAB's case is it will make the brand even more exclusive.
All that can be done in a 12 month period with out changing product, materials or increasing prices.
It's only then; that the new prestigious products can be launched, which will be able to carry the premium levied against them. I would expect these products to be more 'luxury' than 'premium' and therefore of better quality than anything from BMW or AUDI.
They will be out of the reach or the majority of people driving SAAB's today but well in the reach for the small minority who need a luxury vehicle for the family which isn't being driven by the 'Wanna be' crowd.
As can only think of the Aston Martin Rapide and Bentley GT Continental that fits that criteria, then I'm expecting the SAAB 9-5 Koenigsegg edition to be almost if not on par with those to vehicles. If you think that is insane then think about Koenigsegg's inability to be able to produce fast, exclusive, luxury sports cars.
It's not that this proposal cannot be done, it's more about how.
Conventional business practice of high scale production is not an option for SAAB. However the company is about to be bought by some very unconventional businessmen. The biggest hold back that the new Koenigsegg group will have, will be (Sorry SAAB managers) the 'assimilated BORG collective' who after 20 years or being under GM are now corporatized.
Despite how fast SAAB can move and get things done as an independent company, they still wont be fast enough for CvK.
I do believe that with the right marketing SAAB can become a profitable exclusive brand. It's not about having faith is the fact that it makes good business sense.
I want it as a below 40k Euro next generation Saab convertible for ME! ;-)
The idea of a limited edition 9-XAir is a good one once they get back into peoples minds. A K-Segg edition 9-5 could also work but you have to get in the publics eye and mind they need "ONE HELLA OF ADVERTISING CAMPAING".
Tompa I like the idea of a Lotus Coop. The platforms are available and its a proven technology. I am sure K-Segg knows somebody at Lotus.
The Biggest thing in my very little mind that I think Saab needs is a 9-1 and not something rebadges from another company. It needs to be exciting, hip, loaded with tech stuff, and priced to get younger buyers or just as a second car for current owners. Well Thank You all for your time.
I agree that Audi should be the target, for many reasons:
1) They proved you don't have to out-sport BMW to ring up big sales, just do balanced vehicles well...
2) AWD...
3) They too had a premium image without some of the negative stigma of BMW/MB...
4) They are currently and successfully pulling off the very plan that Acura is trying to do and Saab apparently wants to do (moving upmarket and increasing prices)...
5) They are doing it with great interiors, halo vehicles, AWD power, and standout style...
And that's what Saab will need to do. Standout style, great interiors, AWD power, and balance. If they can pull that off and slightly undercut Audi, they (and we) will be fine. That means the next 9-3 has to be a style knockout inside and out and clever to boot to supercharge the brand. Anything less (a "good enough" "average" or "meh" model) could be fatal.
Christian Koenigsegg, actually Eckers/Bishop***/Augie Fabella II/et al who now hold the Koenigsegg purse strings, obviously are inhaling a CCX' exhaust.
The luxury market is harder to crack than the saturated near-luxury market. Does anyone believe that the SAAB/Saab name will be able to compete with Audi, BMW, M-B, Cadillac, or Lexus? -AND- sell 65K vehicles?!
NFW.
The future is a fun, small vehicles sold at volume like the MINI, Fiat 500, & Ford Focus/Fiesta. And they can do it and have done it before: the 96 and 99.
Doesn't bode well...
*** I don't believe he's out of the picture despite his departure 'due to non-related financial legal issues'...
Who's going to buy practicality and utility at $40K much less $65K?
Cognitive dissonance....
"carsinamerica :
October 27th, 2009 at 2:46 am
I don’t know that this is a winning strategy for Saab, but what choice do they have? They can’t go downmarket — they’d alienate their last remaining loyalists. They don’t have the capacity, either in manufacturing or distribution, to support the volume figures that would be required to make them profitable.
Their current strategy as a ‘tween brand doesn’t work, either. Acura does the same thing, without much success, and they have far more resources behind them than does Saab. The company lacks the cachet (and hence, profit margins) of a luxury marque, and has insufficient volume at present levels to survive. This is no small part thanks to the neglect lavished upon it by GM (leave your flagship on the market without a platform update for a decade?!), but it also speaks to more fundamental marketing problems.
People buy premium cars, in no small measure, because they’re known to be premium cars. “I drive a Mercedes,” still sounds good to lots of ears, even it’s a C300, rather than an SL65 AMG. If Saab isn’t seen to be a luxury player, but costs much more than a Toyondissan, why buy it? To be safe? All modern cars are much safer than their predecessors. To be quirky? Perhaps, but Saabs are no longer quirky, and all the quirky people already have one. There aren’t enough of them.
So, if they can’t go high-volume and cheap, and they can’t go on being low-volume and in the middle, then they have only two options. One, they stay at their current market position, but magically increase volume. This is unlikely. Or two, they go upmarket, build cars that are more competitive in the compact and executive luxury range, and come up with a better flagship than the 9-5. If they can do that, then they have a chance to acquire some cachet. Quirkiness will still be a trait, but the cars have to be comeptitive enough to make a case on their own merits, at which point individualists might buy them. That only works, though, if there’s brand cachet. Then, maybe, they can support low sales volumes on higher-margin luxury models.
It might not work. It’s unlikely, even. However, I don’t think that Saab has any other options left. They’ve been in the hole for too long."
And is this plan a teaser? Possibly but its still probably close to the mark.