Saab US sales data – November 2010
December 2, 2010 in News
Sales numbers for the United States were circulated while I was sleeping and as forewarned (before I started sleeping), a mountainous workload remains for the people at Saab Cars North America.
There were 1,127 vehicles delivered in September 2010 in the US.
There were 741 vehicles delivered in October 2010 in the US.
November 2010 saw 397 vehicles delivered in the United States. I mentioned the numbers from September and October just in case SCNA were tempted to rest on the fact that 397 vehicles actually represents a rise on the 371 vehicles sold in the same month last year.
While it’s a year-on-year rise, the fall over the last few months is clearly evident. One now has to wonder how many service loaners were ‘delivered’ into dealer carparks a few months ago.
——
Something needs to happen in the US.
I don’t know exactly which part of the operation/strategy is playing the part of the boat anchor right now, but whatever it is, they need to blow it up and get some real-world awareness out there.
Saab have genuinely good offerings for sale at the moment but they’re just not getting the interest they need. I’ve heard from one dealer who’s not getting bites on 2010 Saab 9-5s despite having almost five-figure incentives on the vehicle.
A 2010 Saab 9-5 V6 Aero for around $40K does not represent a value problem. This is one cracker of a vehicle. There is a visibility and perception problem out there and there’s a massive challenge ahead to change it.
We’re getting to a point where “in progress” and “we’re aware” just aren’t cutting it anymore. Hugh W reported in comments today that Manhattan is now without a centrally close Saab dealer because Parkfield Saab just closed its doors. How long can stuff like this keep happening?
Sweden need to make sure they offer good vehicle configurations (no green-screen radios) and the US guys need to price and market them effectively.
What was one of Bob Sinclair’s rules? Make people believe they’re getting a car that’s worth more than what they paid? Equip it, price it and market it.
Sorry. Had to vent. I’ve met too many great dealers in the US who are still hurting.
Quickening said on December 2, 2010
Holy hell. This can’t last…
And I completely agree. The US dealers shouldn’t even be stocking non-navigation units..
turbin said on December 2, 2010
And if the 9-5 doesn’t sell in the U.S. then…where will it sell??
cap said on December 2, 2010
Here’s the issue. The current marketing campaign is ineffectual. Been said jere a million times. Not many people know saab exist. Have a tv campaign that clearly shows saabs gorgeous cars (pls use a different angle for the 9-5 ) at a solid price WITH a link to website that explains saabs new found independence
Jake said on December 2, 2010
I ranted about this earlier: something needs to change at SCNA.
I don’t care what, just something. Perhaps some new 9-5 variants, I’m not sure. But honestly, this market is one of the most important for Saab. If it’s done for, then in time, Saab will be done for. I wince at saying that.
This had better not last.
Greg Abbott said on December 2, 2010
I could not agree more. From the outside, it’s hard to know who or what to criticize, but the results speak for themselves. Something has to change.
Paddan said on December 2, 2010
These sales figures are awful. I sound like a broken record, but while he may be a nice guy, the top executive is obviously not delivering and in fact from what I understand, is doing things from whence he came – the old GM way. He is as far from Sinclair as one could imagine in his management style (not that Uncle Bob wasn’t a nice guy) and that kind of shake it up attitude is what is needed like yesterday. Perhaps he should take a few suggestions from our favorite blog in spending his advertising dollars. Or how about looking at the Uncle Bob Rules site? Sorry, but way too many folks still think Saab is dead. The message presently is ineffective. What input do the dealers have on this? I am surprised there hasn’t been a major uprising among the dealers, unless they’ve been beaten down so hard they are afraid to say anything. On a positive note, a new 9-5 passed me on the way home on Route 78 West outside of Summit NJ which was the first one the I’ve seen on the road and it looked great, of course. But honestly, it shouldn’t have taken 3 months for that to happen.
meg haviland said on December 2, 2010
A few months back, testing the proverbial waters when Saab started that awfull Ad Campaign “she is not for you” crap I tried to call the Royal Oaks Office with no luck. No phone listing and the “800″ #’s were bringing me back to GM people who had no answer how to reach anyone at Corporate.
Something needs to change in Michigan. Haven’t heard anything from Mike Colleran at all recently. I agree, time for a change and dump dead wood.
As for the dealers left in the US, unfortunately they don’t have much in their co-op for advertising expenses and neither does Saab. It doesn’t help that the network of dealers is getting smaller everyday. Like I have posted many times before, dump the print ads that end up in the recycling bin the next day and go out for some billboard advertising to get brand awareness built back up. Saab is starting at square one and it will take time to rebuild worldwide, but Saab needs the US numbers to grow now. Giving the cars away de-values thems, and makes them worthless in the consumer’s eyes. Saab needs to be shown for the value it gives back everyday. Sell the sizzle and sell what Saab represents. Safety, engineering, advanced technology, why Saab has such a loyal following, why we drive Saab. Build value and build that need to own a Saab and why. Like the saying goes, don’t throw the baby out with the bath water.
Tomorrow is the beginning of a new venture in my life and a return to full time employment selling cars again. Saab and Chevy. Yes I am a bit nervous. I was told I would be on the Saab side of the divided 2 brand showrooms (joined by a hallway through 2 doors) but now it looks like I will be on the Chevrolet side. Me thinks I will be doing a lot of running back and forth between the 2 until I can prove my worth on the showroomn floor and ask to be on the Saab side. Wish me luck. There’s so much to learn about the Chevys, like 6 trim levels per line and what they comprise of. Financing (rebate, purchase programs) plans are crazy!!! Total GM mentality, making it complicated! I want this so much to work out and Saab for them to succeed, be a part of it, to see them grow. This is Saab’s time, it’s now.
Dammed to the naysayers, Saab will succeed
Curvin O'Rielly said on December 2, 2010
Good luck, Meg!
Swade said on December 2, 2010
Good luck indeed, Meg.
Make sure you play “Welcome to the Jungle” on your CD player as you drive in to work
We’ve got your back.
turbokalle said on December 2, 2010
Go get them Meg!
By the way Meg, what do people say that actually come and testdrive? Are they positive or negative? If negative, what about?
meg haviland said on December 2, 2010
@turbokalle will get back to you. I start today and most likely be heavy on Chevy training at first but will update your question later on Saab.
Steve in CT said on December 3, 2010
Meg,
Congratulations and very best wishes – I am sure you will do well!
…and I am sure that dealer is lucky to have you.
Steve in CT
Jake said on December 2, 2010
Meg-
you’re living a dream and helping Saab succeed!
Good luck!
74stingray said on December 2, 2010
@ Meg, you’re going to do great! Saab is going to be an even better compnay thanks to QUALITY people like you.
GerritN said on December 3, 2010
Ah, finally a sales person that knows what he/she is talking about.
Congrats Meg!
Make sure you park that nice convertible in front of the showroom.
Momcat said on December 3, 2010
Terrific news, Meg!! I am sending good wishes your way for all sorts of success in your new venture! Saab could not ask for a better representative for their brand–hoping you will soon cross that hallway in to the world of Saab where you belong!
Saabseller said on December 3, 2010
Ahhh Meg… good luck, concentrate on Saab, leave the Chevys for those that can’t be bothered to learn about Saab. I’m used to Saabs 45 different models, it terrified everyone else so I had the whole show to myself for years! Learn all about Saab, concentrate on safety and pleasant driving experience, and remember TEST DRIVES SELL CARS!!!
They will all keep trying to bust you on price and then whinge and whine about resale … figure that one out.
meg haviland said on December 3, 2010
FYI:
Sales numbers as Swede alluded to for September and October were mostly service loaner #’s so when these cars get resold, the #’s don’t count at that time since according to Saab they have already been sold.
TuuSaR said on December 2, 2010
I think people who wanted V6 automatic got one and then it slowed down as MY11 V4′s were not fully available yet.
35 Saabs registered in Finland btw.
turbin said on December 2, 2010
Fair call, also VM/JAJ noted the other day that there are not enough cars there. Having said that they seem to also have too many of the wrong ones already.
Alex L said on December 2, 2010
Swade and others – is there any way we could communicate our thoughts to the staff at SCNA? I think there are some great ideas in this community how to improve marketing and public perception of Saab, and we really need to let the people responsible for marketing know what we think.
Paddan said on December 2, 2010
I wonder if management there cares what we have to say.
fred from chicago said on December 2, 2010
I aggree. I really dont think SAAB NA cares to hear.
For example, I had a conversation over a month ago with Saab NA about the GM content on the website and the fact that GM responded to my SAAB email. Nothing has been done. Not only does SAAB act like old GM–but they are inextricably linked to this day. As far as I can see they have forfited most of their marking response to GM, who really couldnt give a damn.
Peter, Sweden said on December 2, 2010
Why would Jan-Åke want to have 6000 new Saabs on sale in the US when they can’t even sell 400 cars a month? What in their tactics am I not getting?
I think there’s going to be a lot of advertising for the 9-4X, but something big has to be done much earlier as well. Has there been any advertising and/or some kind of IRL marketing at all in the US during October-November?
Quickening said on December 2, 2010
I’ve said it before and I’ll say it again. And this is just coming from a Texas view, they lost about 4 dealerships within a month. There is no representation in Dallas/Ft. Worth, San Antonio, and Houston (for the most part). Houston is the 4th largest city in the nation and San Antonio is the 7th. Huge markets. In Dallas/Ft. Worth they switch the dealerships to an Audi and a Mini…it wouldn’t be too hard to see all the Saab customers moving to either brand.
I don’t watch much TV, but when I did, I saw some Saab ads a month or two ago, but nothing now.
stampe said on December 2, 2010
Ken Batchelor in San Antonio has at least 2 new 9-5s, not in their main lot but in their overflow lot that you can hardly see. They also have a few 9-3 wagons and sedans but don’t know exactly what year or type they are since I can’t close enough to see them. They had 2 previously owned models near their showroom, but I didn’t notice any new vehicles for sale. They still have the Saab sign up but the showroom has all Caddys. They removed the signage in front that had Cadillac Saab and Hummer. I assumed they were going to put the Cadillac and Saab back but so far nothing. Not too sure what’s their strategy but they don’t seem to be showing off the Saabs.
Quickening said on December 2, 2010
Sewell the parent company dropped all their Saab contracts. Ken Batchelor is only selling used Saabs.
I see the 9-5 and row of 9-3′s everyday. I went in to see if I could check out the 9-5 and they are not allowed to show or sell any of the new inventory. They said they were sending them back to Saab…
He also mentioned that he was trying to sell a CTS to a customer the day the 9-5 showed up and the person instantly wanted to buy it, yet they couldn’t. So the salesmen lost the entire sale. Hopefully that person found a 9-5 elsewhere.
If I was older, and had the backing I would be opening up a Saab dealership in San Antonio..
100%Saab said on December 2, 2010
Scoggin-Dickey Saab in Lubbock has new Saabs for sale.
2011- one 9-5, one 9-3
2010- one 9-5, two 9-3s, one 9-3 vert
2009- one 9-5, five 9-3s
2008- one TurboX
Used 2008- one 9-3SC
And, no I’m not a salesman.
stampe said on December 2, 2010
That’s a shame, not that Ken Batchelor was ever really serious about selling Saabs. Back in 2006 when I was looking for my 9-3 Aero, Ken Batchelor only had a few vehicles for sale. I had to travel up to Austin to a wonderful Roger Beasley dealership. Outstanding facilities with lots of inventory. They seemed very proud of their product which made you want to buy a vehicle, which I did. I haven’t been up there since then so I hope they are still doing well.
Greg Abbott said on December 2, 2010
When I was looking for my new 9-5 in arctic white, I was scheduled for a business trip to Texas. I thought I might fly down and drive one home, so I spent some time on the phone with the sales manager at Roger Beasley in Austin, whose name escapes me. Wonderful gentlemen, and I can’t say enough good things about the brief contact I had with them. My trip got cancelled, so I went back to plan A with Iowa City Saab – but I would have been happy to buy a car from them.
I do believe they’ve changed their name to Maserati-Spyker-Saab of Austin, though.
Smithy said on December 2, 2010
You must’ve posted about this already SW.
Also noted in AMS SE.
zippy said on December 2, 2010
Interesting article. In Victor and Jan-Ake we have a team that can do great things for Saab provided sales materialise and the company starts making money.
hughw said on December 2, 2010
Swade, vents and rants are definitely required. It’s hard to believe, but http://www.saabusa.com , a pathetic excuse for a website, has a Dealer search function that would make anybody other than the most diehard Saabist think that if Saab has not already gone out of business, they should. Amazingly, they have it right and Parkfield Saab is no longer listed, but two other longer defunct Saab dealers in New York (Potamkin and City Saab, and good riddance to both of them) are still returned at the top of the dealer search list, leaving only 86th Street Saab as in Brooklyn as the only Saab dealer still within the city limits — and the Manhattanites who will drive 15 miles to the wilds of Brooklyn though congested city roads and highways are few and far between. Saab did a big business in Manhattan under Zumbach Motors but were forced by GM to move the dealership down the street to Potamkin. Bad as they were, they were at least a presence in one of the world’s great cities and a city where Saab had a following. Now we have not only no dealer, we also have a website that is riddled with incorrect information about where to find another.
This is not rocket science. Even if they can’t update the website to Saab International standards overnight (and it’s now been too many overnights), at least show enough concern for your customers and potential customers to have someone do an easy edit of the dealer list. And the thought just occurred to me, maybe these guys aren’t so dumb about not wasting money in advertisements. Why advertise something i where there is no place to buy it, and no way to find out where to buy it? If Saab was able to move production lines and tooling from Germany and Austria in a matter of months, why can’t SCNA get their dealership network in the US squared away in their most important market in 9 months? Saab deserves better. Saab supporters and owners deserve better. But potential customers don’t care, because there won’t be any.
So Swade, excuse my rant, but they deserve it.
Jake said on December 2, 2010
Hugh-
I 100% agree with you.
The saabusa.com website is crap.
Just crap.
Quijote said on December 2, 2010
+1
These days, website interaction is the #1 promotional tool any company can leverage, and the most direct connection between consumer and producer.
I don’t believe that the website functions as it does because of some GM ties that haven’t yet been disconnected. Its been nine months since the sale. I’m in a related industry (E-Commerce), and find that logic VERY difficult to believe.
I just don’t get it. SAABUSA.COM looks like something from Netscape Navigator days. Embarrassing.
Jake said on December 2, 2010
The Netscape Navigator days?
+1+1+1+1+1
Vance said on December 2, 2010
http://www.nysaab.com/
City Saab is still in business and Marc Rosenkilde is their service guy and is one of the best!
BoeBoe said on December 2, 2010
Saab’s 2009 November sales were 371 and not 293. At least, I we can trust the GM numbers
http://media.gm.com/content/Pages/news/us/en/2010/Dec/1201_gmsales/_jcr_content/rightpar/sectioncontainer/par/download_0/file.res/DeliveriesNovember2010.pdf
And I fear that they won’t manage to sell those 10.000 Saabs they hoped for this year.
(YTD = 4.371)
Swade said on December 2, 2010
Right you are, Boe Boe.
I was working from 9-5 and 9-3 sales (noted here) but neglected to count in 9-7x sales. An honest mistake.
That said, if your sole purpose is to hang about and play ‘gotcha’ when you don’t have to do anything within time constraints or to any sort of deadline, please feel free to absent yourself. This site is published with the absolute best of intentions and efforts amidst many other real world obligations. The accuracy rate is very high, considering.
BoeBoe said on December 2, 2010
You don’t have to get angry. I was only trying to help…
Swade said on December 2, 2010
I’m not angry, but you have a history here of being either corrective, contradictory and/or overly negative towards Saab, Spyker and almost anything to do with them.
“At least we can trust the GM numbers” sounds like you were being something other than helpful.
Again, it was an honest mistake, now corrected and accurate. Casting aspersions on what’s an honest effort that costs you absolutely nothing to partake of is a bit ordinary.
Örjan said on December 2, 2010
I think boeboe lost an “f” in “I we can trust the GM numbers” because “I we can…” doesn´t make sense but “If we can trust the GM numbers” do
Örjan, you may be right (and yes, I may be crazy). However, there were a couple of issues here.
One is the form that BoeBoe had with negative or contradictory comments, as I mentioned in my earlier comment. I get an email for every comment that comes through so I get to know the comment patterns for different people.
Second is the fact that I would normally bring up an issue like this via email, offsite, and sort it out that way. It’s not uncommon for people who tend to comment negatively to do so without providing a real email address with their comment. BoeBoe is one of those who uses a false email address, so contacting him any other way was not possible.
Note to all – stand behind your comments with a real email address.
BoeBoe is more than welcome to hang around, but as I said, IF his modus operandi is going to be to contradict or play ‘gotcha’ then it’s probably best for all that he doesn’t. It’s his call.
SW
BoeBoe said on December 2, 2010
@Swade, like Örjan said, indeed the “f” fell of and I meant to say:
Swade said on December 2, 2010
If that’s truly the case then I offer you my apologies for jumping the gun.
As I said to Örjan, you’re welcome here, but everything else I said there was accurate.
Mike said on December 2, 2010
BoeBoe, your comment was entirely neutral in tone (except for the dig at GM) and in no way deserved the negative reply it received. Perhaps it was misread. Thank you for providing the corrected figure.
turbin said on December 2, 2010
Yes, Mike, but there hav been smartass comments elswhere and in the context of those + this I understand Swade needed to address them.
Swade’s doing his best to cover a whole range of topics and genuinely appreciates help but please make sure to err on the side of polite until such time as we have fonts that convey tone such as Sarcastica (hats off to Arj Barker).
benrp said on December 2, 2010
I guess it depends on the tone it is read but I can see where Swade is coming from.
Dan said on December 2, 2010
My hope is that many people were waiting till the 2011′s were in stock and accessible. The U.S market is not going to work until people see these cars as covetable and available. Most Americans walk in, take a test drive of the car with the options they want, and then buy it. If they are particular they will special order the color and maybe a little customization. My prior post about the seattle dealers still rings true. I am afraid that many dealers who are still alive are alive because they are not a sole source for saab. This means that salesman will not push them over the vehicles which have heretofore been their bread and butter. If one looks at the stock at the Fife saab dealership, it is clearly Cadillac centered. Which would you push if you have 59 caddys and 10 saabs? Saab GB has a way better site than Saab cars USA. Saab cars North America has always come across as pure Snob, instead of Saab. Saab can’t afford to say, tough, you only get an automatic in the aero, tough, no HiPer on the 2.0 T either.
BoeBoe said on December 2, 2010
@Swade, do you have the numbers per model? And the stock they had at the end of the month?
spikeieos said on December 2, 2010
I am proud to say I have contributed all I can to this: that number is 397 and not 396 because of me! No discussion and complaining, go drive a manual 9-3 Aero XWD, fall in love, and take it home! You will be giddy with the number of rebates available right now. Then show the car to your family and friends as I have, one of them is sure to buy as one of mine is about to.
Also, if I had known prices were so low on the new 9-5 at some dealers I would have suffered an automatic just to get that new amazing car.
Nate 9-3 said on December 2, 2010
Thanks for your contribution! I hope the car is good ot you and your family for many years.
zippy said on December 2, 2010
Unfortunately I am not surprised. The website is a disgrace and SCNA doesnt seem to be marketing the fact that Saab is still in business. Time for a change at the top me thinks!! Hurts to say it but if Saab doesnt sell in the US its dead.
Peter Gilbert said on December 2, 2010
This is sickening, I meet former and present Saab owners who still do not know that the company is in business, let alone that there is a new 9-5 on the market.
The only one I have seen on the road was when I overtook a Michigan manufactures rep several weeks ago in, new Haven, CT.
Dealers need to host parties and invite everyone on the customer list.
74stingray said on December 2, 2010
I have seen no Saab advertisements whatsoever. SCNA really need to lay it all out and do some TV ad’s and billboards. I have seen none around the Philadelphia area.
Manlius said on December 3, 2010
Agree 74. I live in the western suburbs of Phila and have seen absolutely nothing. Interestingly, I have owned 6 SAABs over the past decade (some leased), 4 of which were acquired new from the dealer. Other than one email about a launch event for the new 9-5 (on a Saturday I was out of town, unfortuately) I have heard nothing from the dealership. Most surprising to me was that I recently returned a SAAB at the end of its lease and absolutely no effort was made to try to get me interested in a new SAAB. I was not even invited to test drive the new 9-5, which was pretty amazing.
Nate 9-3 said on December 2, 2010
One of the things that we all like about SAAB is that they are balanced. The cars are great at many things, perhaps not the best at most things. They are excellent well rounded vehicles. SAAB tends to advertise their cars in the US this way.
*Warning – VERY BROAD AND GENERALIZATION ABOUT TO BE MADE*
As an American, I tend to run counter-culture to a lot of mainstream Americanisms. Sometimes that’s good and sometimes that is bad. The point is, I like SAAB commercials a lot. That translates into “Most Americans do not”. In the US you have to bring the noise when it comes to advertising. Your noise has to be louder than Caddy’s noise, Audi’s noise, etc…While I thoroughly enjoy traditional, smart SAAB advertisment, I think that the subtlies are lost on many.
There are two areas where SAAB can lay claim to be cutting edge. Those two areas are the XWD and the Safety. Perhaps it is time that SAAB concentrate on those, and loudly brag about them rather than allude to them in commercials. Show a 9-3 taking on an A4 or an Acura on a twisty course and shredding it with it’s handling. Show a deer accident where a car is destroyed but the survivors are fine. Go big! It works in the US. Going small does not (for most). I am not sure that a commercial of a SAAB putting a competitor to rest is going to offend a traditional SAAB freak like us. Even if it does, we’ll appreciate the extra sales.
John Schroeder said on December 2, 2010
I live in New York, and am planning to LEASE a 2011 NG9-5 turbo4 when my lease ends in February.
THE PROBLEM HERE IN THE UNITED STATES ISN’T SAAB ADVERTISING – THERE’S PLENTY OF IT IN MAGAZINES AND NEWSPAPERS. THE PROBLEM IS THE LEASE DEALS – THERE AREN’T ANY THAT MAKE ECONOMIC SENSE WHEN COMPARED TO THE COMPETITION.
We Americans love to lease luxury cars. Take a look at the leasing numbers for MB, BMW, Lexus and Jaguar here in the United States. WE NEED BETTER LEASE DEALS FROM SAAB AT THIS POINT.
RIP Parkfield Saab in NJ – A great dealership – and one of the largest Saab dealers here in the United States.
I really hope we can start selling vehicles in good quantities soon. I really am looking forward to my 6th new (and yes, leased) Saab.
Long Live Saab.
jcs
Jake said on December 2, 2010
Yes, we do. $329 a month is OUTRAGEOUS!!! Even I know that, and I’m… 13!
And no ads ANYWHERE now! And the ones put out before were pure putty-like smut.
That’s ridiculous. We already discussed this, but SCNA, I know you’re trying, but if you’re really passionate about Saab, you’ll pull some strings and clean up your act. I realize it costs $$$, something you don’t have lots of, but c’mon. This isn’t an ordinary business. This is Saab. This is an extraordinary business. It can succeed, but we need something better from you guys.
Sincerely,
-Jake
Curvin O'Rielly said on December 2, 2010
That’s what cars cost, Jake. Sometimes even more than that.
Jake said on December 2, 2010
Curvin-
I realize that, but…
The 9-3 leases at $329 a month (I don’t remember the exact figures) but MB is leasing the c-class at $339 a month, and it’s preferred by many people over the Saab. It’s also considered a slightly more luxurious class than the 9-3.
This may not be as relevant, but Hyundai is leasing the Sonata for $199 a month, and Subaru is doing the same withe the Legacy. Sure, the 9-3 may be pricier and more luxurious, but there’s no reason in my mind why leasing can’t drop to around $300 a month. $25 a month makes a big difference when leasing for 24+ months.
I may be young, but I’m not as naive as the average 13 year old. Otherwise I wouldn’t be here
I don’t mean to be rude by posting this; please understand. Thanks.
Curvin O'Rielly said on December 2, 2010
The thing about lease pricing, Jake, is that it’s always apples vs. oranges. The monthly payment is one thing, but there’s also the amount due when you sign the lease, plus the residual value of the car you choose. I’ve leased cars a couple of times and each time I was sorry I didn’t have a financial expert sitting at my side to help me figure out the most advantageous terms. If you’ve got the details down, I’ll give you a call the next time I lease a car.
To be honest, I prefer buying vs. leasing.
Jake said on December 2, 2010
Fair enough!
BellaAsil said on December 2, 2010
I am rather concerned about the lack of vehicles that were delivered in November. That is quite a plummet from both October & Sept numbers. I know that our local dealership (only one in the state now) waited over 4 months for its first 9-5 and six months for a 9-3 convertible. Americans are not patient people when it comes to waiting for anything. Also the local dealership hasn’t been doing any advertising that I know of for SAAB. I would love to know which dealers are giving off nearly $10K US off on a new 9-5! The local dealership is only giving a $1000 US off the new 9-5 and with asking prices of $53K US for the V6 and $50K US for the V4 that’s not much at all.
9-3s however have been moving quicker mainly due the great incentives that are available.
Fred in NH said on December 2, 2010
I got flamed a few weeks ago for suggesting that Victor go on a prime time commercial announcing to the American public that SAAB is very much alive. I think they need to do something big along those lines.
I was talking cars yesterday with someone I work with who, I found out, is really into Volvo. I was explaining to him that I bought my SAAB back when it looked like they might go out of business. His response? “They are out of business, right?”. When I said no he came back with “but they aren’t delivering new cars at the moment, right?”. And this from a guy who is really into cars!
I think they need to find the Jason Castriota of the marketing world and hire him or her, whatever the cost.
saabdude said on December 2, 2010
Welcome to the club Fred.
I too have been roundly criticized here for comments on the apparent lack of a marketing strategy by SCNA. Sales numbers don’t lie, however.
I’ve been a SAAB salesman & sales/general manager…and as I have said ad nauseum…a SAAB owner for 33 years. I know how the business is supposed to operate. Right now…it is in **** poor shape in the US, and getting worse as the months go by.
Let’s face it folks…Mike Colleran is a career GM employee.
http://www.saabsunited.com/2009/09/mike-colleran-named-as-future-saab-usa-chief.html
And we all know how well GM marketed SAAB.
As Yogi Berra put it…”it’s déjà vu all over again”.
So now, let’s hear all of the “well informed” responses from the posters here who have NO experience in sales & marketing of SAABs whatsoever. Can’t wait to see what useless drivel spews forth from the “experts” here.
Sam Y said on December 2, 2010
I remember reading when Spyker did the purchase and signed the deal with GMAC that they were going to puch for a leasing program,
for houses we say location, for cars we say marketing and SAAB need a lot of it, you don’t see much of it any more (did they fire the marketing department)
SAAB has an offer for $439.00/27 on the turbo4
MB is offering $479.00/36 on the GLK350 4matic
I think SAAB need to do better
Kirk said on December 2, 2010
First of all, they need to stop focusing on car enthusiasts and start advertising in the real world, attract lawyers, doctors, arthitects, business people…whatever, there are plenty in N.A.
The majority of these people in the real world are potential customers, and that same majority have no idea if Saab still exists. The people reading car blogs and leftlanenews.com are not going to buy a 9-5!
Another idea is for every Saab dealer to take 3 9-5′s, drive them up and down the highway for the day, each day a different dealer in a different metro area. Can you imagine how many motorists in America would see the new 9-5 on the road that day.
Börjesson said on December 2, 2010
Maybe Saab USA are deliberately holding back and saving their small advertizing budget until they have sufficient stock at the dealers, have had time to get their website sorted out and that sort of thing. Even if it means a couple of months of really poor sales, it might still be the better option. We’ve heard previously that the PR strategy in the US is to focus on a few very high-profile TV spots instead of spreading themselves thin. Well, maybe Saab will go all in on February 2011 then? The Grammys, the Oscars and the Super Bowl, all in the same month…
Curvin O'Rielly said on December 2, 2010
A big-event TV commercial media buy – the Oscars, the Grammys, the Super Bowl – is an expensive proposition. Moreover, given Saab’s current lack of sales momentum, it’s a high-stakes, roll-the-dice, bet-your-last-chip, hope-you-win strategy. While VM may well have an entrepreneurial soul and nerves of steel, I doubt that he’d pull the advertising/marketing equivalent of betting the ranch (or going to Vegas) to secure Saab’s future, especially since he’s clearly focused on the arrival of the new 9-3 two or so years from now.
Since the essential problems seem to be 1.) that people don’t know Saab is still in business and 2.) that Saab has some unique virtues that car buyers either don’t know about or may have forgotten, it might be better to run a “steady-state” schedule of full-page four-color ads in major magazines, along with banner ads and other forms of Internet advertising. I’m quite certain that Saab dealers would also welcome some local newspaper advertising support, possibly even co-op funds for local marketing events.
None of the ads would have to say that Saab is still around. The mere fact that they’d appear so often in so many magazines, newspapers, etc. would cover that detail, while the content of the ads – not only that Saabs as good as they are, but also giving specific reasons why – would almost certainly generate some showroom traffic.
FYI: Hyundai was successful using a big TV event media strategy a few years ago, but they spent an absolute fortune on it – a fortune for the media time, plus a second fortune for their expensive voiceover talent (Jeff Bridges). Not only that, they gave their expensive campaign added horsepower with their expensive and high-risk Buyer Assurance program, a unique idea that spoke to consumers about a significant pain-point.
Jeff said on December 2, 2010
Busy work week for me thus fewer comments, but I thought I’d chime in that Victor has stated the ad buy for the 9-5 was going to be around $50 million. Why can’t they just go for it with a superbowl and oscar ad for a combined $3-4 million? Really deliver something outrageously eye catching. People watch those events, and it’s one quick way of reaching 95% of the car buying public in one move and then if it’s edgy enough getting blogs to pick it up. I agree with you on most of your points but I think they have to at least try something bigger and bolder just this once to kick the whole thing off.
Other than that, I agree with pretty much everything said here. It’s a mess. The dealership structure is getting worse, and there are weak, lax, if not non-existant standards for dealers to be held to. While the new Ohio dealership “icon” is amazing and I’m behind that effort 100%, it’s the ones who really aren’t delivering the reason why these numbers are lacking. My dealer doesn’t even have a sign out front that says Saab. No joke. All of its new inventory is tucked away in a corner of the back lot. It’s as if they’re waiting for Saab to tell them, okay, get back to work and try to promote the brand. All the while, the dealer claims he can’t get enough stock from Sweden to warrant giving Saab its own showroom. WTF?
Curvin O'Rielly said on December 2, 2010
Splashy, eye-catching commercials can cost a million or more to film. Then there’s the cost of broadcast time on top of that. Figure a million or more for 30 seconds on the Superbowl, depending on placement during the game, and possibly a bit less than that for the Oscars or the Grammys. For discussion, let’s say Saab’s ad budget is $50-60 million. There’s nothing wrong with big and bold, mind you. I just think it’s a little foolhardy at a point when you’re selling only a few hundred or so cars every month.
Paddan said on December 2, 2010
Curvin – what about the billboards mentioned above – can you shed light on that cost? They could be placed in metro areas where Saab has it’s stingiest footholds and can’t be easily ignored.
Rune said on December 2, 2010
Well… How are the production numbers adding up now? Have they shipped many cars to the US? If they haven’t, then it would make no sense to push advertising much…
Curvin O'Rielly said on December 3, 2010
Paddan…
I’m not sure what a billboard campaign would cost. Probably a lot. And I wonder what you could expect by running one, even if you were able to do a saturation buy. Maybe build awareness a little. Possibly even let car buyers know where dealers are located. In general, I doubt that billboards would be cost effective. What’s needed is advertising (magazine, newspaper, Internet, possibly TV in Saab’s major markets) that tells potential buyers what Saabs are and why they should go to a dealer for a test drive.
Börjesson said on December 2, 2010
I posted this in another comment earlier today, but I guess it’s worth doing again. It was a very interesting story, after all, and I don’t think Swade has covered it in a post.
From a story in TTELA on the 19th:
This is only a little snippet, it might be worthwhile for the non-Swedes to googletrans the whole thing. It’s not a Colleran interview as such, but more of an editorial by Valdemar Lönnroth, written during the LA Auto Show, but it’s a good read.
Saab dealer said on December 2, 2010
@Nate 9-3:
I posted on our website, facebook and twitter, a $309 mo lease on a new 2010 9-3 aero sedan well equipped last Saturday. Pretty incredible lease yet no sniffs. Similar leases on ’11 9-5 turbo4′s as well.
The leases are there.
Unfortunately there are bigger issues and Steven has hit the nail on the head in his closing paragraph. Giving a customer a huge rebate says “sorry about our product, here’s a bunch of money.”
The right approach is bring it to market closer to the ultimate transactional price…and market yourself around that. Rebuilding a brand takes years. No amount of incredible advertising will fix it. Being the value leader in the premium European segment will get customers in and we can all be proud of our products. Right now it’s hard to convey pride while giving 10k discounts. Hoping they come in at current prices and giving them big rebates is not the answer.
And I do believe the products are worth the money however to repair the brand and get people to buy into your brand will not happen with the current plan.
Posting from an iPhone is no fun
Nate 9-3 said on December 2, 2010
LOL great point about the iphone!
Thanks for the input. I know that rebuilding a brand takes time but I do not know if SAAB has more than 4 years to rebuild it. Perhaps rebuilding the SAAB image in the US will be something that we study in the future like we will with the purchase of SAAB? VM has already shown me that he can hire the right person in other areas.
I am 100% against human cloning, but I am willing to make an exception if we can clone VM and have his copy do nothing but talk his talk about the brand here in the US
turbin said on December 2, 2010
Beautiful insight.
JeremyP said on December 2, 2010
As a Saab sales consultant I have to agree wholeheartedly with your thoughts. While I respect that we can’t ween a buying public off of incentives overnight, posting an MSRP that is %20+ above your final transaction price and then trying to open the floodgates with discounts is wishful thinking at best (and financially disatrous at worst). Many of the most informed potential buyers i.e. people who read this blog still do not know what is available to them in terms of ‘deals’. Media reviews give an as tested price (MSRP) but never the actual transaction numbers thus Saabs amazing deals are a secret to the majority of the population.
We have an awareness problem, a perceived value problem, a public perception problem etc. Loading a huge rebate may salve the wound in the near term, but that is not selling from a position of strength or providing any meaningful long term solutions. It actually makes things worse. We need to get to a point where we are selling the car and not just the $$$ deal (I like using both to create VALUE!). Selling a Saab 9-3 for the price of an Altima is a great thing if customers are aware of the choice. How many buyers would choose Saab if they knew they could buy a VERY well equipped 9-3 for under $25K? VM and JAJ would be happier at $30k, but right now they would be happy to have the sales period!
How about this: a 9-3 2.0T FWD with a sunroof, leather, DUAL power heated seats, 17 inch wheels and the rest of the usual 9-3 standard equipment for a $25K MSRP. That would generate some interest and make waves in the press! We sell these cars for that number or less every day. It would make you think three times before buying some of our real or perceived competitors products. Price them a bit higher if needed to maintain perception and ease into lack of rebates. You do this by offering lease and finance deals that don’t kill residuals in the same way huge rebates do.
How about a 9-3 Aero with STANDARD 18 inch wheels, another 30 – 50 HP, a suspension that is more than 10mm lower than a base car (a barely perceptable difference in look and feel), and a few exterior and interior trim upgrades to help differentiate from a run of the mill 9-3. Price $30K – $35K depending on FWD or XWD and final options. Any takers?
How about a longer warranty and free maintenance plan to generate some interest. Seems to be working for Volvo. That is what Hyundai did when it was in danger of leaving the US Market. Undercut the competition to make it a painful to buy something besides the Saab. We already do this, but 99% of the world doesn’t know it. Most Saab are a good value at or near list but make for ridiculous no brainers when priced like everyday cars.
We have a great product line that could benefit from some tweaking to equipment, packages, and price. Saab needs to play the hand it has been dealt to create desire and interest in the population at large. Emotion is a huge motivator in buying a car. Offer something that would get peoples juices flowing. Not a 2011 9-3 that is a dead ringer in every way to a 2008. Be the little guy who punches above your wait, but mnost people are not cross shopping Audi/BMW/Mercedes against us. Try Subaru, Acura, Volvo, VW and even domestics and Honda/Toyota.
P.S. – I will take a 9-3 Aero with a six speed manual. Every option except Nav. 18 inch wheels and a 2.0T engine (not a six) with 250+HP. In white perhaps? FWD or XWD is the question…
P.S. – sorry for the long fragmented rant. Too much in my head to get out sensibly.
John Schroeder said on December 2, 2010
You nailed it my friend.
I hope someone at SAAB reads your post and wakes up.
THE TIME FOR ACTION IS NOW – CAN THEY REALLY AFFORD TO HAVE A FEW MORE 400 UNIT MONTHS?
ivo 71 said on December 3, 2010
JeremyP,
All that you mention is indubitably true. So what can you do with it? You can wait until SCNA wake up and start a national campaign of ‘a few expensive TV commercials around some big events’. On that note, that certainly wouldn’t be my choice for media planning, I would not blow my -limited- ad and media budget on a little bit of overexpensive publicity around mass events (these are, as the word says, for the masses; Saab isn’t and will never be) but on quite a few more selected venues and advertising vehicles fitting the probable target groups. Think architects’ or industrial designers’ national conventions and congresses, big artsy and cultural do’s in ‘incrowd cities’ like NY, Boston, Washington DC, Seattle, LA or SF (lots of snob potential there), ads in mags/on websites for the creative, legal, medical and dental professions (or any other profession or group of professionals that considers itself more sophisticated than and/or different from the mainstreamers), gay people (said to have better taste than others), art dealers, writers, stuff like that. But, well, SCNA have not invited me to consult with them so Superbowl and Emmy’s it will be, I guess.
Anyway, can’t you just simply start some target-specific or general advertising or mail flyering or CRM-database promotion in your own city or region? Or do something on local/regional TV? It doesn’t even have to be prohibitively expensive.
Something on the note:
NOT ONLY IS SAAB ALIVE, IT’S KICKING, TOO. CHECK THIS OUT:
And then you could sum up (or, better still, have an excellent copywriter with Saab love/knowledge -there are several US-based ones on this blog- have sum up) all those points you mention in your post, do some comparison stuff on Saab vs. competitors. If you look around on this blog alone, you will find more than enough Saab-favourable facts and USP’s to point out why a Saab can be, -what am I saying? IS- a much better proposition than the equivalent BMW, Merc, Audi and so on. Such points could touch advanced technology, luxury, performance, roadholding, cornering, winter/XWD (vs. BMW/Merc RWD; just show a 5-series, an A6 or a C-class pirouetting on an icy hill slope and then an XWD Saab calmly driving up the same hill; great for a TV-spot; no or hardly any words needed…), comfort, safety, ‘different’, ‘intelligent’, price, value-for-money, incentives, lease terms… And, of course, you finish by inviting the reader for a visit and a test drive that can take as long as the prospect considers necessary.
You could use them in one comprehensive saturation/repetitive all-stating ad series or (preferably) in a series of theme-dedicated ads, whatever you prefer. I’m sure you can find more than enough free-of rights pics on the web or get them from Saab PR (perhaps in Sweden if SCNA cannot or won’t oblige) to support your statements visually. I have seen some overwhelmingly beautiful pics in Saab PR stuff. There actually are survey stats from ADAC (in Germany, for x-sake!!!) that put Saab 9-3 in the number-one spot quality-wise, in front of all (German) competitors.
There is a lot you can do to make sales happen, even if SCNA don’t, won’t or can’t (yet).
Ivo
JeremyP said on December 4, 2010
Ivo,
‘Not Just Alive, But Kicking!’ Sounds like a great tag line for an advertisement to me! Put that next to a hot picture of an ‘All New’ Saab 9-5, 9-3 Aero, or 9-4Xand you might have something.
ivo 71 said on December 4, 2010
You are welcome to it, Jeremy, no charge. And you can even truthfully say that you use a European copywriter for your ads. “So much more sophisticated, you know…”" . Should work well in Snobville, Long Island.
Ivo
ivo 71 said on December 4, 2010
Sorry Jeremy, not Long Island probably, that was another dealer participating in the discussion. But perhaps still a Snobville?
Ivo
Alex said on December 3, 2010
Fantastic points. Saab needs to realize that at this time they are not competing with Audi in the US as much as they would like to think, but rather lower end cars. I know many people who got into a Saab because it was only a little more than a Camry or an Accord after discounts or as a CPO (myself included). Saab should ditch the discounts, load up the cars with standard features and drop the price signigicantly. If people knew they could get into a reliable 9-3 for 25k rather than a boring Camry that would change a lot. Then as new and more upmarket models arrive Saab can take their loyal new customers upmarket, this whole notion of stealing away Audi owners with the current products just isn’t going to work that well here in the US.
Kirk said on December 2, 2010
All of the dealers in North America have to unite, it’s easy to do that these days, so get the show on the road!
Sitting back while waiting for customers to come in isn’t gonna do anything.
Also, the boys at Saab have to be more optimistic, 120k cars per year? How about say something like by 2016 we want to sell 500k cars a year! Then you will reach your goal of 120k in no time.
Paul Guinnessy said on December 2, 2010
John Schroeder is right. A lot of it is to do with financing. When we bought our Tiguan a couple of weeks ago I got it at $500 below invoice, and 2.5% over 72 months (1.9% offered at 66 months).
The 9-3 is slightly too small for our family and 4 grand more (and the Tiguan dash looks a bit more upmarket I’m afraid to say). I looked at a XC60 (I hated that dashboard) and for 32 grand (plus tax) I could have one at similar interest rates to VW.
The lease deal on a XC60 is $399 with four grand down for three years and a five year warranty with all servicing paid for. Saab is offering on a 93 $369/month 39 month lease, $4320 down. A 95 is $479 per month for 27 months and 4 grand down.
You can buy Saabs at 9 percent for 72 months but no one knows it exists (even if, when you do the math its cheaper to pay 2.9% from a credit union) unless they visit the Saab web site. I haven’t seen ads in my local newspaper talking about this deal (though I have seen Saab ads on tv).
The real solution will happen when the 94x is launched. As I think you’ll be surprised how much show room traffic it will generate.
One other point. I had about 5 emails from the volvo dealer, and 3-4 phonically checking to see if I had decided to buy. I had one email from a Saab dealer, which was informative, but didn’t include any followup. That’s a mistake in this competitive market.
Paddan said on December 2, 2010
What are 2010 9-5 Aeros leasing for and how about 2011 4 cyl. models?
JB said on December 2, 2010
I live on Cape Cod, south of Boston and see NO Advertising, either newspaper or tv. As a former Sales Director I have always been taught that to make money, one has to spend money. I just don’t see it. Even the Fiat coming here is getting press. Why not Saab. Open you eyes to what need to be done, or we will be.
JeremyP said on December 2, 2010
New England Saab dealers are in a big ad buy that is just starting. On real network channels at more normal times. Not a panacea, but it can’t hurt!
Alex said on December 2, 2010
Not good at all. They need to do some real price slashing and load up the cars with standard equipment. Hate to say it but Saab needs to sell itself as a budget euro luxury brand until they can come out with products that truly represent the asking price.
The 9-3 does not stack up to the current competion anymore here in America at least, if it started in the 25k range it would do better. Yes, I know there are incentives but that’s not what people see first, they just need to lower the price and be done with it. It’s a good car and the reliability just gets better but it’s an old model and the price should reflect that.
As you said swade the green screen in the 9-5 needs to go, as well as that “wood”. It should have a color screen even if it’s sans Nav. This just looks worse when compared to the new A6 that was unveiled today, sure it’s more expensive but it’s the competition Saab is aiming for and I hate to say it but the quality of the interior (from photos) is far ahead of the 9-5. 38k starting price is good, put some more base features on there and advertise it well.
The 9-4x will bring people into the showrooms and that will help spread the word further.
Chris Hansel said on December 2, 2010
Well, these are disappointing figures. I think their a a bunch of reasons, I will mention two. No real low price entry vehicle, and very little TV money. The website is not great, but it does work , unlike the Ford website I was on last night. Someone ( think a dealer) said it will take years to rebuild Saab in the U.S. Well you don’t have that much time. Do something you hate to do, give the public a low base priced 9-3 without the rebates and advertise the base price car on TV. Nothing else is going to work. As someone else mentioned, stop concerning yourself with car nuts like ourselves and Jay Leno, and talk to people who say are late 20′s and on the make. They are out there, but right now they are not thinking Saab.
Chris
hipchecker said on December 2, 2010
Swade – In all honestly, the tone of your entry is just begging for people to rant, so it’s understandable for people to post their concerns.
People here are just as frustrated as you, so I can’t even begin to imagine what those who work for Saab must think. I feel really bad for them.
What’s interesting is that today GM, Ford and BMW all posted double digit gains in November. So clearly people are starting to buy once again. What we should look at is the TYPE of cars being bought – small, SUV, AWD, Hybrid, etc.
Numbers don’t lie. That’s where the answers are.
In my non-professional opinion, I have to agree with many comments here. It doesn’t take a rocket scientist to see that Saab is making some poor decisions. And I mean this in the most respectful way. This is nothing more than constructive criticism.
The internet is the #1 place potential customers go. And where has Saab put its development money? – An iPad app. Not the Saab USA website, but an app.
As much as people think Americans are stupid, they aren’t. Why lease a 9-3 for $400/month when you can get a BMW or MB for the same if not cheaper? Yes, WE know Saabs are incredible cars, but Joe-Q public doesn’t, nor do they care. They want value. Accept that as fact.
Timing. Why is the 9-4x coming out in the spring? Or the 9-3x last spring? Launch them when it makes sense – the fall. That’s just common sense.
Engine choices. I realize Saab had its hands tied on this one with the whole GM thing, but people shouldn’t be surprised when buyers are opting to buy cars with fuel-efficient engines. Last I checked oil was close to $90 a barrel.
Size. People are downsizing to smaller sized cars that are less expensive, all the while Saab releases a larger 9-5 that costs more. The 9-2/new 9-3 can’t come soon enough.
Yell at me, hate me, that’s fine. Like many others here, I just don’t understand some of these decisions. I still think Saab will get it right, and I hope so, it’s just going to take some time – maybe longer than we thought.
Oh, and I’m still going to buy a 9-4x when it gets 30MPG with AWD. I’m currently saving.
Jake said on December 3, 2010
hipchecker-
I actually thin you’re completely right. I got grilled for an earlier rant that followed the same lines, but I think you wrote what I was trying to get across better.
I don’t hate you!
Thanks! I’m glad someone agrees with me!
RMinNJ said on December 2, 2010
Well we all had a go at it with the “Saab Ad Competition” .
Does anyone think those ads will help Saab out? I liked many of them.
Here in the US I think they can sell anything if the price is right. I know nothing about marketing cars
though. I will say this. .. On TV in the NY metro area here every morning and night I see RangeRover
commercials…their marketing budget must be enormous. But I don’t see too many on the road.
zippy said on December 2, 2010
Why sell cars at a $10000 under retail price. As pointed out it cheapens the brand. Why not just sell the cars at a lower retail price. I reckon Saab should have re-entered the US market with low low prices for the first few years to get their numbers up then slowly increase prices.
JeremyP said on December 2, 2010
Absolutely. Make people think they are getting a steal in terms of value for money, and it would show up on the buying publics radar much more than the current strategy.
Alex said on December 2, 2010
Exactly! Also the regular consumer just sees the MSRP and walks away, they have no idea how many incentives there are to get the price way down. Saab needs to reposition itself as a value euro luxury brand and then climb it’s way back up the ladder.
Paddan said on December 2, 2010
I thought the 9-5 should have been introduced as an Aero XWD at $39k but only now are dealers discounting them to that price and it’s too late. Ala Lexus in 1989.
Tompa said on December 2, 2010
Once again. I don´t get why Saab should build cars for the american market with no margin? And why price themselfs in a place where other Premium cars are not?
Saab is a premium brand and aought to be priced accoringly.
Cheers/Tom
Paddan said on December 2, 2010
While you and I may think that Saab is premium, the American public – like it or not – does not. This is the reality of this difficult market. Frankly I think the German 3 are POSes but that doesn’t matter to the general American public which thinks a C class Benz is way better than a Saab in terms of snobbery. Heck, most Americans don’t know what a Saab is and if they do, they think it went out of business.
Iiari said on December 2, 2010
I have to share and agree with everyone’s outrage and have very little to add but to reinforce some existing points.
As far as advertising goes, here in Rhode Island, an hour South of Boston where there’s a huge existing Saab ownership, I’m seeing no advertising at all anywhere. None. If there ever was a 9-5 launch ad blitz (I thought it would be coming with the ’11′s), I haven’t seen it (vs the millions of those stupid “naughty” Volvo ads). And the ads they were running previously on TV were pleasant, but it’s time for something much bolder… VM as Lee Iacocca-like spokesperson? Does Saab call out BMW/MB/Audi as “me-too” mobiles and shout how it is different? Is marketing internal or is there an agency account that go out for bidding? I don’t know, but what isn’t there now isn’t cutting it…
Obviously, Saab needs dealers in huge markets. To not have dealers within striking distance of America’s largest metros is an obvious recipe for failure. Here in RI, a larger mega-dealer less Saab focused and farther from the population base now has the brand and replaced a smaller, closer dealer that I would bet did better sales wise for Saab… SCNA has to have the data… Crunch it and start to make some decisions…
Regarding SCNA, I know they’ve got to be hunkered down and beleaguered, but I get worried when on this website I read in the comments that a Saab Club of Canada leader offers their organization’s help at an upcoming car show and hears NOTHING back from SCNA. Not a clarification, not a polite rejection, not an acceptance of help, but NOTHING. Crickets. That’s bad… No money for ads? I get that… Haggling with dealers and lease agencies? Got it… Can’t answer an email from a dedicated fanbase wanting to help your Canada launch while it takes you 10 months (and counting) to redo your embarrassing website? Something’s rotten at the office…
VM has to know someone fluent in the US industry, a take-no-prisoners type like a Peter Delorenzo, and call and ask, “Hey, my team doesn’t seem to be cutting it here… Who do I bring in in the US as a crack squad to turn this around?” It happens in industries and businesses all the time, and I think we’d all feel a little better if we sensed some urgency, sensed ANYTHING from SCNA…
EE said on December 2, 2010
I live in the Boston area and I have a number of Saab dealers within a 15 mile radius. I have never seen a new 9-5 or a 9-3x once on the road since they arrived. I have not seen any advertising locally either. We have some good knowledgeable dealers in the area like CRS and Village Saab and they seem to have plenty of inventory. Actually, the car I seem to see the most is the previous 9-5 Combi. They are everywhere around here.
As a Saab enthusiast with a family in the market for a new car up to 40K, the following is what is keeping me from pulling the trigger on a purchase:
1. 50K sticker price on the Saab 9-5 Aero XWD V6. What will it be worth in 2 years?
2. No wagon with suitable space for families. Had a 9-3 and the back seat is too small for car seats and little legs.
So it is a mix of price and product for me. I do not think it is healthy for the brand to charge relatively high prices and then discount them heavily. Whenever I have a conversation with any of my somewhat knowledgeable friends, the first comment is usually “50k for a Saab…no chance”. Saab needs to reduce their list prices by 10% and then don’t discount so aggressively.
On the positive side, I do think the 9-4x and the 9-5 Combi will sell here in New England. Once those products are available, I think sales will creep up in the North East of the US. Hopefully mine will be 2011 9-5 Combi 2.O Turbo XWD Manual sometime in 2011.
Also, Saab will be at the New England Motor Show in Boston running through this weekend. (9-5′s will be there but I do not know whether a 9-4x will appear).
PA Saab Dealer said on December 2, 2010
We delivered our first 9-5 yesterday. Finished the month with five new Saab and six used. I think things are getting better. It is going to take time with the small add budget in the U.S. The feedback is very good after a test drive. The 2010 9-5 Aero at $50,000 without a sun roof is a tough sell for us. As the 2011′s roll in we will do better. When you drive the cars, they are very good. We have four other brands to sell that helps us be patient.
Chris Hansel said on December 2, 2010
Hi John;
Hang in there. By the way that old 9-5 from your dealership I picked up made it all the way to AZ and is now doing daily service of about 88 miles at 28.5 MPG. I spend about $ 1000.00 at my local Scottsdale dealership to keep it on the road. It is still proudy wearing it’s Penna. inspection stickers, and S.E. Pa. Saab club decals. When your customers tell you they can’t afford $ 60,000 for one of the new Caddies, tell them to look at Saab instead.
Chris
Börjesson said on December 2, 2010
Curvin O’Rielly wrote something interesting a bit further up in this thread:
So what are Saab’s unique virtues? What about Saab would appeal to the general US public who don’t know much about the brand and aren’t already biased towards it like the SU nuts? What objective reasons are there for buying a Saab instead of something else? I mean, other than vague intangibles like “aircraft heritage” or “cars with soul”, which take years of careful marketing to sell to those who haven’t already bought it. What does Saab do better than the competition?
Curvin O'Rielly said on December 2, 2010
The first paragraph or so of the first Saab ad I wrote in 1979 does a pretty good job of defining Saab: “With a Saab, the natural tendency to pigeonhole cars in one category or another is best forgotten. A Saab is so thoroughly, pragmatically, imaginatively and intelligently designed and built, it manages to be a lot of things. Unlike many cars, it defies easy labeling.” The rest of the ad, for the 900 Turbo, proved with facts and figures that it was “The most intelligent car ever built.” Sales took off almost immediately.
Donald North said on December 2, 2010
I remember when Saab’s slogan was “The most intelligent car ever built” and it seemed entirely applicable back in the day. However when I went to the recent LA Auto Show, I didn’t get this impression upon finally seeing the 9-5 up close. For starters, the styling is elegant but understated, which could seem boring. Going inside, why are the window controls on the driver’s door and not in the center console? Why was there no sunroof on the Aero model on display? Why were the seats less comfortable than those in my ’03 9-5 Aero? Why is there limited headroom in the backseat? I’m 6′ tall and never had this problem in my C900 and 9000 hatchbacks… Speaking of that, even BMW now has the 5-series GT hatchback. Newsflash: Hatchbacks are cool again.
I sure hope Jason addresses all these issues in the next 9-3.
Dan said on December 2, 2010
Unfortunately, in defense of Saab, a Donald Rumsfeld quote is appropriate: “The army you go to war with is not necessarily the army you want to go to war with.” The shortcomings which you have mentioned are part of the g.m approach to life, trying to restore profitability by cutting the quality will not get you far. G.M has specialized in taking a Huffy bike and calling it a Serotta for quite a while now. Take for example, the engine that they turbocharged and used rubber timing belts, that fried quite a few Saab owners for good. I do like the idea of direct distribution in conjunction with rewarding those dealers who are working hard to market the product and experience.
On the advertising front, take a clip of Erik Carlsson bombing through the twisty snowy passes in the Monte Carlo, then cut to the 9-3 on its side as seen at the summer press event, then cut to a moose test, finally, Saab; breaking convention for 60+ years. Don’t emphasize your fragility, emphasize your traditions, your strengths, those tenants that are common to people in 1953 to people in 2011. Youtube is a powerful medium, post current videos etc. People will respond to different, but not to me-too. If you are doing me too, trying to one up BMW or Audi, you can’t catch up because of inertia, size, and perception in peoples’ mind. However if you can catch their fancy and have a damn good technical reason behind it, like the turbo rush out of a small displacement engine, you will be successful. How about going to junk yards and videoing how are other cars are built? Little simple vignets like a montage of the NCAAP tests, or take tin cans made out of the varying grades that automobile manufacturers use, crush them with a gauge showing pressure, i.e your Saab has steel this thick and this good, see what happens when you use cheap tin. Creativity is the name of the game. Continue to raise the stakes on your ad competition like Swade has done, but get SCNA and Saab Sweden involved, free car to best in show, 2nd prize parts upgrades for whatever Saab model you currently own, 3rd place or grand prize: trip to Sweden meet with top brass etc. Reward visual impact and creativity. If Blair Witch Project can make a whole boat load of money, I know there are talented Saab nuts out there just waiting to make this dream come true.$$$$
Börjesson said on December 3, 2010
C’mon people, these are not unique virtues. They’re marketing spins. I’m not asking for an ad campaign, but for an objective reason to actually buy a Saab. Find a real reason, and then by all means spin it into infinity in campaigns. But there has to be a foundation in reality, you can’t build successful advertising on thin air. Let’s face it:
- Saabs are fun to drive, but not as much so as a BMW
- Saabs are practical, but no more than a Subaru
- Saabs are safe, but no safer than Volvos
- Saabs are fairly good-looking, but are not in the same league as Jaguars
Why should anyone buy a Saab instead of any of these competitors? Only to be different? Or is it perhaps that Saab’s unique virtue is to successfully combine all these qualities into the same car?
- Saabs are safer and more practical than BMWs, Audis and Jaguars
- Saabs are better-looking and more fun than Subarus and Volvos
That was the angle I was aiming for in my entries in the ad competition, anyway, even though the execution was admittedly fairly inept.
If we can factually and honestly say that no other brand is better than Saab at combining safety, practicality, performance, “feeling” and design into one car, then we have something to build on. Then that’s the unique virtue that all the advertising should emphasize. But is it true? Comments, please!
Curvin O'Rielly said on December 3, 2010
Donald…
To be honest, I too wouldn’t call the current line-up of Saabs “The most intelligent car(s) ever built.” But I’d let the gist of my comments above stand. Saabs are lots of things all rolled up into one: performance, luxury, comfort, safety, economy (relatively speaking), practicality.
RS said on December 3, 2010
Börjesson,
It’s the combination of things and lack of weaknesses that make Saabs great. It’s so easy to come out with a car with the most hp (like an Audi V8 wagon) and say this is the ”best” car, when it most certainly isn’t, but even so called intelligent people fall head over heals for the prestige it gives the owner.
We must remember that when the 9000 Aero came out it put Saab in the same league with top notch Germans and lot of base Saabs where bought because of it. Who wouldn’t want to be part of the winning team?
In the smaller premium diesel class 9-3TTiD is right up there with the rest having USP’s in performance and consumption! On top of that it’s the best winter car, that’s why it sells in Sweden although the image after the GM drama is horrible. I don’t think an other company could had survived it. Saab is just that good when you add reliability and safety which are also top of the class. With all that you start to wonder why all these others brands sell ten times more cars than SAAB elsewhere?
)
The only answer is lousy sales and marketing. The German trio shouldn’t be able to sell one single car for $50k if you think $40k for a new 9-5 is too much. Granted, it should absolutely for that price have a fancy display and a winter package.
If Saab wants to be really aggressive until the MY11.5 with the 9-3 which costs, what $30k plus, they could advertise that they offer a 20% discount on all ‘GM’ 9-3′s until the end of March to celebrate the first year of SAAB Independence! (who wouldn’t want a $30k+ premium car for a bargain like that?!)
BUT that discount should include all markets around the globe! (I think they would become bunch busy bees in Trollättan
5000 Scandinavian would jump on that offer immediately since we’ve NEVER seen a Saab discount/incentive in our lives! (unless we’ve payed cash for a new car)
Börjesson said on December 3, 2010
Alas, I don’t think a Saab discount in Sweden would work. Not that people wouldn’t be interested in buying a good car for less money, obviously, but the Swedish media would destroy the campaign. They would portray it as a last desperate attempt by a failing company to get some sales going. As a result, no one would buy anyway. Because who wants to buy a car from a company that’s about to go belly-up?
RS said on December 3, 2010
Actually I wasn’t thinking about Sweden where cars are relatively inexpensive, but its neighbors. Just look at the site stats. Someone said there where only 35! Saabs sold in Finland in November. It should be hundreds. Maybe a good deal before the MY11.5 update could do wonders to almost non existent sales in some markets.
I know people are waiting for the 9-5SC in Europe and a big diesel, but something really needs to be done in many countries now where Saab sales where ok before all the…
Jake said on December 2, 2010
Borjesson-
Snow driving, XWD, coolness factor, a rarity on the road, turbo, and ergonomics.
Frankly, I like being aggressive with my advertising, as shown in the Adcomp ads that I made. Saab is currently the passive kid, currently picking their nose in the back of History class in terms of advertising.
Living the U.S. Has shown me that a smidge of smugness, and some funny aggression (ike the BMW billboard next to and Audi billboard that said “your move BMW” that said “checkmate”) go a long way. If Saab could do that, like pitting an Audi against a Saab in the snow on a billboard, and showing the Audi lagging behind, or putting a Gripen vs. An R8 on a runway, etc.
Just my opinion, written on my iPod touch, which is why I didn’t reply directly to your post.
Curvin O'Rielly said on December 2, 2010
Aggressive advertising always works… if there’s a singular idea unique to the product (in this case Saab) in the ad.
Dennis said on December 2, 2010
I agree with previous comments in this thread no one here in Los Angeles wants any new car without a navigation system in it.
Jamie said on December 2, 2010
Just a couple observations…it seems to me that SCNA has missed the boat on a couple of things. From everyone’s comments here, The leadership at SCNA needs to go back to basic business school principles; what is your value proposition to the consumer? How do you communicate that proposition to the consumer and lastly, how do you execute that plan?
Before we get side tracked on the words value proposition, it is not soley monetary value, although for most consumers would identify with that. Value proposition is what the business offer to the consumer. What do I get for my money? “Aircraft heritage”, “quirkiness”…but what else?
How has Saab communicated this to the general consumer? In this day and age, communication is a fractured process. Gone are the days of ads in major newspapers and TV ad s on 3 major networks (in the US). consumers are bombarded by a multitude of competing media outlets; 300 plus channels on cable, a dizzying array of websites and other digital media outlets, and traditional means of advertising. Messages have the potential to become so diluted these days and lost in all the noise.
Just my observations.
North Toronto Punter said on December 2, 2010
I actually had a Rant (dressed up as Manifesto) ready to post here…but you’ve all beat me to The Punch!
I’m with Curvin that we not place a Roulette bet on expensive prime-time, ephemeral, Mega Media Events (SuperBowl etc.). Billboards can work — BUT NOT WISHY WASHY STUFF. Have to play the Safety Card — and it better be of the Moose Headbutting 9-5 in Technicolour variety… so nobody misses it… not monochromatic mood pieces with ‘move your mind’ tag lines.
Dealerships: I read the problems of Austin, NYC…and I’m made ill. I wonder whether Saab would not have been better served to control the means of distribution and vertically integrated production in the US from Day 1 : Invested 3 million dollars in 10 major centres in the US and built state of the art , single brand facilities (with service bays to match). If that would have puched a whole their 50 million dollar ad budget… then so be it.
Not sure what else to suggest: We storm Royal Oak HQ?
I’m joking , of course…
Jake said on December 3, 2010
Oh, but I’m not joking….
eadams said on December 2, 2010
Without question I agree with most everything that has been stated here. And, I am especially happy that Swade instigated the discussion since I believe he has an inside line to Saab management. Perhaps Knut Simonsson can chime in on SU like JC has in the past??
That said, no matter how frustrating SCNA’s performance is, I take comfort in the fact that VM and JAJ are hugely intelligent guys and that there isn’t a thing in our comments they don’t have covered.
tallac said on December 2, 2010
One phrase:
V-8
People walk onto the Audi and BMW lots wanting the V-8, and then sell themselves on the viability of the V-6, which really is the better value proposition – logic wins out on emotion.
But what gets them into the lot in the first place? If you are looking at a $40-50k car, you probably already have a car, and it works and everything. You don;t – from a purely rational utilitarian perspective – need a new car. You want a new car. So why not start your search by satisfying the wants?
Alex said on December 2, 2010
completely dead wrong. It hasn’t worked for Volvo and it definitely wouldn’t work for Saab. Not what the company is about and not what it’s customers are looking for, especially now a days, the fact that a mustang now has a turbo 4 should tell you this. The turbo is in, it’s hot and Saab is an expert.
Saabheart said on December 2, 2010
Unfortunately I have to agree a little bit. 4 cylinder engines are not associated with premium luxury cars any more. WE know the value, but THEY (general public) don’t. And all they know is what’s on paper. Saabs have always had sub-par 0-60 times and HP figures, the two things that sell cars on paper (at least in America). Now, I know that those are ridiculous numbers, and in reality Torque and 20-120mph is what REALLY should be measured and reported, but we can’t beat them, join them. The Aero needs to move up to a M-fighter (414hp is a lot more than 300…). The base engine in your flagship needs to be a turbo V6…
4 Cylinder engines have LOTS of value in todays market, no doubt, but not in premium full size luxury cars. That segment needs bigger engines. The smaller cars I think are fine with the 4 cylinders, they typically make up the vast majority of sales anyway, it’s just right now we are relying on the flagship to pull the company along, which is very very hard.
And before I close, I should say I’ve owned 5 Saabs, some turbo some not, but all 4 cylinders. I know a lot about HP/Torque, and I know a little about what people look at in a car magazine. I know what works and what sells, they aren’t the same thing. Saab needs to play their game eventually…
Alex said on December 3, 2010
People aren’t buying the V6 Aero, why would Saab put in a V8 and charge even more? Why would such a small company invest in something that would barely sell?
Everyone including BMW and Audi are smart sizing their engines and turning to turbo power. The few people who go into Audi/Mercedes dealers looking for V8s are buying large premium models that are far more luxurious and advanced than anything Saab has to offer. These people don’t even consider Saabs and it’s not because there is a lack of a V8, it’s because the brand is not considered premium enough here in the US. Saab needs to upgrade many more aspects of their cars before they can consider rolling the V8 big boy club, that is if you think they even should which I’m most do not. Playing me too with 3 big germans is not a good business plan, Saab needs to set itself apart. As I said before that’s what Volvo did here in the states with a V8 S80 and XC90 and it has not worked at all, for Saab to do the exact same thing and not learn from Volvo’s mistake would be suicide.
tallac said on December 3, 2010
Look at Hyundai, they brought the Genesis over with a V8, and they will be doing a mid model refresh on both the engine, and the tranny (eight speed). They are competing in the same price space as the Aero ($40-50k), and look at the market share that they have been grabbing in that segment – and they started from nothing.
I don’t know why Volvo worked/didn’t work, other than people don’t identify Volvo with sedans in the US – I think people think of the station wagon styled after the box it came in.
I also don’t know what the deal on engines was in the split. I had heard that the V8 was really designed under license by Yamaha, for Jaguar/Aston Martin. So I don’t know if that was a factor.
But also look at Acura – great cars, but the RL has always been left behind in the segment by the offerings from Infinity and Lexus. When the dealers request a V8, Honda comes back and says it’s not necessary, only x% of total buyers in the segment end up with the V8, etc.
In this price range in the US, you can’t lecture the buyers about what they need. They won’t stand for it. Start with what they want, then present some options, and let them make up their minds. $40-50k is a luxury sale, so you have to sell top down.
Jim said on December 2, 2010
At this point it sure looks like the 9-5 USA pricing should have been more aggressive. Saab is finding out the market value of the 2010+ 9-5. $33,000-39,000. If they advertised it as such, (as a bargain), you tap into a huge swell of demand. The USA market is the world’s cheapest. We are spoiled rotten by $48,000 E-class Mercedes. In our world, the 9-5 (loaded) is a $39,000 car. Saab would do best selling loaded cars (which cost nothing more to build), for $39,000. This goes double for the 2011 9-3. That should be priced in the $20k’s with the Jetta. I think Saab’s brand awareness is pretty good. Its value proposition should be in bold letters. Instead they continue GM-pricing it to death.
Robert P said on December 2, 2010
Read comments on US car forums (also German/British) and there are two constitent lines:
1) We’re not going to buy a rebadged Buick Lacrosse or Malibu or Opel Insignia (in Europe) for 50k dollar. So the old mythe still exists. Work on that – get rid of all the GM logo’s everywhere. How hard can it be to put a sticker over a logo?
2) Saab is unreliable. In the beginning of this decade there were a lot of problems with Black Sludge and T5/T7 DI-units. Specially in area’s where service was not up to standards and/or were weather conditions are more extreme, this happened a lot. Increase warranty (it’s now 4 years in the USA, don’t know about other car manufacturers?) and spread the word of reliability.
That with improving the website up to corporate standards -why is the biggest Saab market lacking a decent website?- and some good advertising -why not do advertising internationally?……..
dmk said on December 2, 2010
Lot of great comments here.
I do see an ok amount of national advertising via the Wall St. Journal, USA Today, and big car magazines. I see virtually nothing from local dealers.
I’m in Chicago and we have at least 8 dealers, of those 3 Saab exclusive. I’m on the mailing list, or should be, of at least 4 of these dealers. There has been virtually no communication or promotion from any of these dealers. This area is, or was, a big Saab market. Why aren’t the dealers advertising in the local papers or doing open houses, etc.? They should at the very least be doing direct mail campaigns to all of their Saab and various franchise customers. These dealers also need to be stocking the appropriate mix of vehicles. Each one should have at least 3-9-3′s (SS, SC, and X) along with at least 3-9-5′s. SCNA is obviously not making them order the proper mix of vehicles. One of the Saab exclusive dealers, albeit small, has only 3 new Saabs–a 9-3 SS and vert and 1-9-5. Pathetic!
And this whole dealership network thing has to get straightened out ASAP.
I, on the whole, am very disappointed in SCNA and my local dealers. They need to do much better.
SAAB_andee said on December 3, 2010
I looked the webpages of some US Dealers. They are really crappy. An their 9-5 inventory is most still low with the standard grey colour.
It´s not Saab north americas fault at all. Dealers also have to take part.
Many of the multibranddealers still have no interest to sell SAABs. Only give rabatts is no concept.
Bravada said on December 2, 2010
I believe there is a huge mess going on at Royal Oak. The staff indeed seems to consist of GM staffers accustomed to working with a big organization that supports them and sometimes requires a lot of internal greasing to get stuff through. What Saab needs now is enthusiastic, out-of-the-box, no-holds-barred explorative enterpreneurship. Much more Jill Lajdziak, if I can say.
Saab has only been bettered by the dying Mercury in terms of incentives per vehicles. This is taking the worst leaf out of the old GM book. I absolutely agree with the strategy of stocking loaded vehicles at REAL prices. That’s what Saab started doing with the 9-3 in several European countries and it works miracles. A loaded Saab 9-3 at $25K or a 9-3X at $29K would sell like hotcakes – and those are the sorts of deals people are getting anyway, if we are to believe the reported figures on incentives. Not to mention it is much easier to sell a vehicle with a lot of cool (and warm! – see heated seats) features than one on its merits alone. The 9-3 is still a great driver, but it looks so much better all dressed up and armed.
As concerns advertising, I absolutely agree with Curvin et al. saying that the “big stake” strategy is Russian roulette. I am very worried about Mike Colleran actually subscribing to this strategy in his comments. Saab can’t afford to actually break through in the cluttered world of modern-day TV, so why bother with the expensive, overexploitated medium? The customers are out there online, in spas, fitness clubs, business centres, they are doing their holiday shopping now. Is there a Saab at every Saks’ or IKEA? Why are Saab ads only appearing when you’re searching for Saabs? Why is the 9-3 ad only showing a 9-3 and not telling you why you should buy one?
And then there’s leasing – obviously the toughest nut to crack, but the above comments show it’s crackable. Saab needs an out-of-the-box solution here – and I am sure there are quite a few!
Jake said on December 3, 2010
Well said.
Johan said on December 2, 2010
Everyone has an opinion if everyone emails scna about it. Must have an effect. I mean if everything they do is so nad we need to know that!
fred from chicago said on December 4, 2010
the problem with emailing Saab is that there is no place to email SAAB–without emailing GM. All of the “contact us” links everywhere go directly to GM, who saab contracts to do the work for them. After a couple of posts I did get a call from a nice guy at SAAB NA But the day-to-day contact is with GM. And you still get a pat GM like answer with GM links and mentions of GM products. I am not convinced that, until they finally decide to take marketing in-house with SAAB people or with people who are not GM people…the job wont be done correctly.