9-5 SportCombi pricing – Sweden

55 thoughts on “9-5 SportCombi pricing – Sweden”

1. The price of the sedan will be lowered to 289.900 SEK.
   http://di.se/Default.aspx?pid=232085__ArticlePageProvider&epslanguage=sv

   • “…and we have removed some of the standard features so we have been able to adjust the price” says Magnus Hansson of Saab Sweden.

     —–

     So… What did they remove?

     • The wheels

       • Would that not be considered a tad impractical?

         😀

         • If you want to drive the car, yes it would 😎

       • You mean the alu-rims? Like they do in Germany, the basis version is delivered with wheel covers.

     • This is the very worst approach. I am very worried about the direction product packaging is going. I am afraid GM left a big book in T-hattan, as leaves are being taken out of it by the dozen.

     • I wonder how the new standard package compares with its competitors…

2. Apparently they’ve removed some equipment to make it easier to compare it with other cars, hence the lower price than the 2010 9-5 sedan

   • mm don’t know but the MY12 sedan will become cheaper as well, so the combi will be only 500 eu more expensive than the sedan

     • sorry just read the first reply

   • Common sense would dictate to make it the hardest to compare to other cars. Saab will stand to a disadvantage in many regards, so they should pack the car with features. That’s what Lexus did, and they are in a similar position as Saab is. Make Saab exclusive, more expensive, but also a “higher standard” car.

     There is no point in going head-to-head with Volvo chasing the low-budget customers. Let Volvo et al. have them, aim for the high-budget ones, providing loaded vehicles full of features, comfort, superb handling and punchy engines on more favorable conditions.

     Options do not really cost the manufacturer that much. Actually, it might cost Saab less to have less option combos, less parts and less manufacturing complexity. Not to mention the costs of product management of such complex offerings. It took Saab ages to build model configurators e.g. for the US due to that.

     What you add options for is to extract money from the clients with higher budgets. Automakers who have to build volume for their business cases, such as Audi offer bare-bones cars just to move enough of them to cover fixed costs, and then make their margins on the highly-optioned cars.

     Saab has far too little volume and far too much money to earn (due to relatively high fixed costs, despite the effective approach to lowering them) to copy that strategy. Saab should aim ONLY for the high-margin customers, even if chasing them with price. But that’s price for a LOADED car.

     I do believe Saab should look to Jaguar for inspiration more than Volvo or Audi. And, first of all, get creative and simplistic. Even IKEA can do that.

     • From a marketing standpoint it is actually good to reduce the amount of standard equipment if this also reduces the price. At least to the level offered by the competitors. First off, a lower starting price means that Saab can compete in a wider price range, in other words, they can potentially sell more cars. It also means Saab can use this lower price in marketing. Potential customers will look at this lower price and compare it with similar prices from other manufacturers. If the price look uncompetitive from the start, the potential customer might simply ignore Saab as being too expensive since he or she doesn’t know or care that Saab have included more equipment in the starting price. We saw many stories in the press about the new Saab 9-5 being “expensive” when it was released. Did the journalists care that the equipment level wasn’t the same in the different models? No, they didn’t and in worst case, the potential customers doesn’t know that either.

       • Again, we are talking of appealing to different customers. I do believe Saab has no business chasing after people who want a low price. Saab needs to build the image that their cars are expensive, but well worth it, and not cheaper than the Germans, because they are inferior. They also need to aim for the SEK 400,000 customer, not the SEK 300,000 one. That’s 100,000 SEK of almost pure gross margin out there on the table.

         • I’m with you on that, but do you think in the near term (2011-2012) that can happen? You mean in general as new models are developed I’m assuming? Definitely with you on looking to Jaguar instead of Audi/Volvo (at least for the 9-5/9-4x). Basically, widen the range. I also think a lower priced 9-3 that is styled aggressively yet beats the competition on driving pleasure and price would be a great image builder and give accessibility to the brand. I think you can do both if you carve out your markets and promote them right.

         • Absolutely. Far term is too far away from Saab. The new 9-5 is in a whole new class for Saab, and has all the makings of a luxury car. With basic specs, it is just a stretched insignia. An Aero makes the Germans tremble. You can’t really have both and a consistent image.

           Waiting for the “far term” (which is the “near term”, just a few months later) is what killed GM, who started from a much better position than Saab and seemed invincible. And Saab is very vulnerable. If they don’t start the reorientation NOW (in fact, they should’ve started it back in 2010), then it will never happen. And Saab will be forever saddled between Volkswagen and Volvo, battling to make ends meet, with hungry customers requesting even more rebating and discounts.

           I am pretty sure you can’t do both. BMW does get away with it because of their scale and years and years of image building. But they are still vulnerable, as driving a 3er is no longer anything exceptional per se. This is where Saab could step in. Especially that even the current 9-3 really is The Ultimate Driving Machine!

         • For a variety of reasons, mainly due to GMs mismanagement for so many years, Saab has years to go before it claws it’s way back to a high priced, prestige car maker. The problem is, that the business plan dictates that cars be sold at high prices. Thats not working at least in the US, one of Saab’s most important markets, and loaded 9-5s are languishing on the dealer lots and at the ports. There just isn’t the right lease terms out there for the loaded cars. The 9-3, still a fantastic car, is old news. Moreover, the Swedes apparently don’t have confidence in Saab, so why should consumers outside Sweden? It is an unfortunate situation. I’d like to see lower priced cars out there to get them on the road so people start seeing them, but not sure Saab can afford this strategy now or ever. I have owned Saabs for over 30 years andthe existing products and those in the pipeline are the best in Saab’s history. Not sure enough consumers agree with me or are willing to pay the price. Not sure what the answer is, but sure hope VM can pull a rabbit out of his hat.

         • Paddan, it isn’t about Swedes not having the confidence in Saab.
           Saab is selling very well all things considering (no 9-5 SC for 1 1/2 years) at the moment. What screwed things up was the GM playbook that imo kept the Saab under water on purpose. As they where most likely afraid of getting exposed for what the other divisions were producing compared to THN.
           The winning attitude amongst the engineers is there alright. Just look how they approached the <120g CO2 challenge when everyone inside the group was telling them it can't done.
           Now we have the eXWD, BMW and ZF co-operation, 9-4X, 9-5SC, JC hatch and god knows what else.

3. I see my reply was already answered…

   Anything about the the CO2 levels of the diesel engines?

4. When will factory start produce 9-5wagon for sale? Will wagon get MY12 from start? Will sedan get new interior from Aug11 as MY12 or at same time wagon be ready for production?

   • HI,
     the wagon will start as MY 12 just after the summer brake. The updates for the wagon will also be available on the MY 12 sedan.

     • Hello… i decided wagon was going to start a bit earlier since prices already available..

5. I think this is actually a very good pricing level! Considering that the ovlov V70 is about the same price, less power and ugglier, SAAB is spot on! 🙂

6. I think de-speccing and down pricing is fine – it means more people might be able to stretch to the 9-5 range, albeit base model. I seem to remember the old 9-5 range had a Airflow (?) model in the UK – lowest point of the price range, aimed at fleets possibly.

7. What market are you in? This is Sweden pricing policy, a local market. I think you should approach each market differently. From what I know, Saab in Sweden is not a real premium choice, so lowering prices in this market might be smart. We are now all focusing on the configuration on a local market but we should note that the combi is only marginal more expensive then the estate, which I think is great news.

   • I intended to reply to Bravada…

   • robertp +1.

     It is worth pointing out that in Sweden, there are certain tax benefits for corporate customers when the car is set below a certain pricelevel. Allowing people to prioritize differently is helpful.

     • But does Saab really earn money on those cars? Are they only volume feeders? Would Saab do any worse without them? Is it worth chasing this market? What will it do to resale values? How will it impact Saab’s image?

       I do honestly believe there is no need for Saab to be affordable to EVERYBODY. What’s the point of crowding the streets with plastic-wheelcover-adorned bare-bones 9-5s? Is it a premium car or what?

       BTW, in many European markets specs closely follow the Swedish ones. The option sets and base versions are the same, sometimes importers manage to get a special price on an option package and then they tend to play the quasi-rebate game in retail.

       • I am inclined to agree with you.

         How about a compromise? Keep the sedan as-is, while targetting the stripped bare-bone SC at the corporate market (as well as police vehicles and similar).

         That would make the sedans more exclusive while putting Saabs on the ground where they can be seen.

         I think Saab need to recapture their home turf. An affordable big combi is what the market here craves.

         • Rune – I don’t think Saab needs to “recapture home turf”. Let Volvo supply the “non-profit” wagons to the police and other bulk fleet operators. The only reason I see for battling for sales in Sweden is strong krona, yet still, it doesn’t mean Saab needs to trade for loose change.

           I sincerely DON’T want Saab to be putting base models on the ground, especially plastic-wheelcover-adorned wagons with the green LED thingy instead of the nav screen. Those vehicles WILL be seen and WILL do damage to any pretences to luxury status Saab could have.

           I have a friend who wouldn’t consider Saab because of all the Linear-wheeled Saabs running around with incomplete equipment. He didn’t even know how an Aero looked like, and was quite smitten by the looks of an optioned-out one.

       • Well, In certain markets like here in the US……..A lower price might mean more volume in a car segment that is really empty. Not many car makers offer a “wagon” and this might be just the ticket for those needing more than a sedan, but not quite a crossover.

         • Turnover vs. profit… Sell a few expensive cars for good profit or sell more for a low margin. I guess the second scenario is better for Saab. It also makes the service organisation, dealer network and purchase power better.

         • On the contrary, Robert, as Saab has a capacity issue and high fixed costs. They are not GM. They need to go for high profit / low volume, as even moving twice as much cars in “certain markets” they will still be playing the peanut game. But by then, they shall be giving away cars for free, battling for any margin whatsoever, which gives them little cushion in times of supplies hikes or aggresive discounting required by momentary market conditions.

           And just think what it does to resale values, the used car business being what keeps many dealers afloat, and a seemingly yet-untapped opportunity for Saab themselves!

           You can always sell an expensive car on the cheap. But you can’t sell a cheap car expensively…

       • Just for information:
         The price difference between the cheapest 95 Linear and a fully spec’ed Aero is about 120.000 USD.
         It makes a BIG difference what the base price is for the cheapest models in the range as 70-80% of the cars are sold to leasing companies, and the taxation for company cars are based on the base price.
         Get the price for the SC Linear below 500.000DKK and the market widens significantly.
         The easiest way to do this in our market is take out some of the features that are taxed at full taxation. ie 180% of the base price.

         • In Denmark that is 🙂

         • This:

           taxation for company cars are based on the base price

           is really interesting!

           Could you explain how it works in detail? Will a 2.8 V6 Aero be taxed based on the price of the most basic 1.6 Linear?

8. The prices looks promising. The performance mentioned in the brochure got me a bit puzzled.

   Can the performance for the BioPower 220HP be that worse than the 180HP for 80-100km/h? For the Sedan the 220HP the performance is a little better at 80-120km/h but has way better acceleration for 0-100km/h. Are those numbers really correct?

   SportCombi:
   0 -100 km/h: 180 hp: 10.0s 220 hp: 8.3s
   80 – 120 km/h: 180 hp: 11.6s 220 hp: 13.0s (shouldn’t this be something like 11.4s?)
   Sedan:
   0 -100 km/h: 180 hp: 9.5s 220 hp: 7.9s
   80 – 120 km/h: 180 hp: 10.8s 220 hp: 10.6s

   I prefer to have more power when overtaking someone and therefore it looks like I should go for the smaller engine but I want a big engine 😉

   • Must be a typo as:

     SportCombi XWD:
     0 -100 km/h: 220 hp: 8.3s
     80 – 120 km/h: 220 hp: 10.4s

9. Btw: No news of King Wade, eeh.., I mean Swade and his new job? 🙂
   Swade, tell us at least something! Where do we find you? ..Oh, you didn’t get everything up and running on the first day?! 😉

   • We’ll be hearing from him soon enough. Lots of work to be done from what I understand, I would expect to hear from him by or before the NY Auto show. I don’t think he’s hiding from anyone, email still works and you can always follow tweets.

10. Sweden is a Linear country in bigg numbers, so have a low “starting price” is only natural. And to load you car with extra features is normal. Here Saab need to sell in big numbers so the entry-level model must be atractively priced and it is to. Lease deals is based upon the entry price level.

11. Pardon me for asking here, but I’ve spent the past half hour trying to understand how to link my newly created Gravatar to my newly created WordPress account. Can one of you fine Saab folks lend a hand?

    —
    (seems fine as you noticed yourself, best regards Rune 🙂 )

    • Uhhh, never mind, as it seems to have already been links. 😀 Ahh, the wonders of the interwebs.

12. They have something called “Performance chassi” as an option for the 9-5 SC Aero. Is it just me or is that new?

    And what is it?

    • All Aero models have that.

      • And it’s just a performance-tuned chassis, and it includes fancy crap like Hi-Per strut, etc….

        • Sorry Jake.
          Till now we had the “Sportchassi” which was, and still is standard on the Aero, new on the 9-5SC price-list is a Performance Chassis which is an option even for the Aero.

13. The prices seems competitive overall, and I find it good that the base price has been lowered. It means a lot to the perception of the price if it is below 300 000 SEK for the Linear SportCombi. 🙂

14. Since someone else posted re: the US market, maybe I’m not completely off topic (sorry – new to the world of commenting). Any idea when the SC will be available in the US? Early announcements said available to order in March, but not a word so far. Also, the 9-4x is supposedly coming out in May, but nothing has been posted re: specs. Did people actually preorder in January without knowing any real details? And re: the above conversation, as a regular old consumer (versus knowledgeable enthusiast), I actually like that the 9-5 comes with all those options included, as I really want the options, but would be less willing to order them if I had to pick out and pay for each one. Now I can tell myself it comes that way, and to outfit a similar car with another manufacturer, I’d be paying at least as much. I love the tech. Only thing missing in my opinion is the blind spot warning system – especially with the reduced rear visibility of recent designs from a number of manufacturers.

    Finally, if this is off topic, feel free to delete!

    • No worries 🙂

      Here’s the specs for the 9-4x. My dealer had a really pretty brochure for me to look at too, you should head up to yours and check it out.

      • Thanks so much. Interesting. I really want the 9-5 SC, but not sure I want to wait until September (or later) to upgrade my 9-5 wagon for safety reasons. I’m disappointed in the 9-4x mpg though. Been spoiled by my current car. Thanks again!

    • looking,
      I’ve heard somewhere that US-spec Saabs will have a blind spot warning system.

      • Thanks, Red. That would be great. The 9-4x is tempting, but the mileage is so low (looking at the loaded Aero, of course!).

15. The -5 SportCombi dont give a f**ck about how a Station wagon should look. Love how the whole roof rests on the c-pillar and just floats away backwards from there.

16. 100% in agreement with Bravada’s comments. SAABs breakeven point won’t become lower only because of cost savings; it will become lower due to higher contribution margins and those come from higher content cars allowing for gradual price and margin increases.

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