I waited to put this up until the end of the day (US time) so that everyone could have some time off of the waiting game. Hopefully you spent it well. In the meantime, we continue to wait patiently on one party in particular, and hope that all issues that need clarification can be ironed out as soon as possible. Until that point, there really isn’t much to speculate on.
Somehow, when you consider all that Saab has been through, it’s incredible that there are enough loyal customers who are willing to buy a car from a company that from all indications from the mainstream press is a walking corpse. Maybe these customers know something the reporters don’t.
| November 2011 | Sales | YTD | Stock |
| 9-3 | 150 | 3,710 | 1,218 |
| 9-5 | 166 | 1396 | 971 |
| 9-4X | 40 | 234 | 254 |
| Total | 356 | 5,340 | 2,443 |
| November 2010 | Sales | YTD | Stock |
| 9-3 | 306 | 3,718 | 3,089 |
| 9-5 | 91 | 552 | 1,368 |
| 9-7X | 102 | ||
| Total | 397 | 4,372 | 4,457 |
One thing that jumps out to me: the 9-5 sales are up from last year. I see this as a clear indication that once a plan is securely in place, production has restarted and some new models have been released (e.g. the 9-3 replacement), we could start seeing a dramatic increase. People like a good comeback story, if Saab can leverage take advantage of this: next year could look very different for Saab.
That or you can pick up a 2011 9-5 Aero $15-20K off retail. Just a thought.
I do remember hearing at one point that there may be price adjustments when the new cars come out, not to the extent of $15-20K though. Leasing will be a big thing going forward though if we can get a handle on residual values.
I guess folks are getting these NG 9-5 and bargain basement prices. Since I took ownership in Oct 2010, I’ve only seen two other NG 9-5 on the road in metro DC. Surprising considering all the Saabs on the roads in this region. In fact, when you see all the Saabs parked at area shopping malls you wonder how in the world could Saab be in its current situation.
I’m one of the 150 purchasers for a 93 this month . I love my 93 sport combi. Its an awesome machine! Thanks vick muller and employees!!!
Wow, that is a pleasant surprise. Even if someone wants to say that these are fire sales or anything like that, it doesn’t matter much as the dealers have been able to move some old inventory. We pay flooring interest on the cars on our lots, so for the dealers that have moved some cars in November, I applaud you, good job. Oh and hey, there are 356 more Saab’s on the road in the US then this time last month.
Jeff what kind of remark is that? Your always telling us to be positive, I just don’t understand that negative remark coming from you !
It’s not negative at all. Just trying to do my best to explain what’s going on. So far we have all indications that the alternate plan is shaping up very well, there’s just a lot of back and forth to ensure it’s right before it’s made public. There’s a finite amount of time left, so that at least forces all parties to reach agreement on all the details ASAP. At this point there’s nothing any of us can do but keep our fingers crossed that all the is are dotted and ts are crossed. No point in getting anxious now after all we’ve been through.
Ok Jeff that’s what I want to hear, positive things! Not 15-20k off retail price of remaining Stock. Unless they will clear all old stock and start new Saab company from scratch without GM Tech!
“That or you can pick up a 2011 9-5 Aero $15-20K off retail. Just a thought.’
In your dreams. Try $15K off a used 2010 9-5 Aero, maybe.
Just spoke with a dealer yesterday who let a $56K 2011 Aero go for $39K this week. They need the cash.
I purchased a NEW 2011 9-5 Aero, MSRP $56,500ish at the beginning of October for $40,000. I probably could’ve got them to come down a little lower.
That’s a huge loss to the dealer, I would hope that’s not the norm out there.
It seemed to be the norm in the Midwestern US. There were several dealers offering similar deals at the time in Wisconsin, Illinois and Ohio. Out in the West, that has not happened – of course, there aren’t alot being sold either.
That is the norm. Advertised internet price as I write this at a dealership I check weekly is $39968 for a new 2011 9-5 Aero. Best price on a 9-5 Turbo4 is $31,900. People who snatch these up (as soon as the future of the company is secure again) at these prices are getting an amazing deal. Darn student loans. No new Saab for me this year or next.
These are not the prices in Texas. The Sewell group in Dallas sold a 2009 9-3 with 40,000 miles on it for $20,000 this week. You can not buy a new 9-5 in Dallas. There are none on the lots.
I’ve found zero mile 2011 9-5s for $27k advertised (and posted link here). That was months ago; it could be $24k now.
I have never seen a new 9-5 base dip below $27k (which is a steal at $12k under sticker). I have been watching values on eBay and the local megadealer. I don’t see any 9-5’s left at the local dealer and just one at the megadealer. I have never seen a 9-4X on the road or at a dealer.
Well reading the comments here it is getting more and more clear that trying to sell Saabs in the states is a waste of time and, above all, money. No offence guys but the prices are too low to make money on selling cars if you are producing outside of North America.
Saab should perhaps setup an exit strategy. Just selling the 9-4X and perhaps a version of the 9-5 for a few years and then close shop. Saab should concentrate on building the markets in Western Europe plus Russia and China. The effort to sell a few thousand cars in the US is sucking all other efforts dry, Markets where Saab actually make money on each sold car.
I see no reason to pamper one customer group over another just because they are in a different country. Some markets are charging three times the prices you have in the US and they don’t complain as loudly about too expensive Saabs, sheesh.
Sorry guys, But so you know this is not against you Saab fans or loyal buyers in NA, it is against my perception of the market as such.
Grumpy…the US has been one of Saab’s strongest markets for the past 60 years. The sales are a direct reflection of the state of the brand, it’s quality, reliability, it’s pricing, advertising/marketing… and in all of those area’s the Saab dealers having been carrying the heavy load alone for 3+ years. It also happens to be the second largest automotive market in the world. With a fresh start, a marketing plan that fits the market (Not Move Your Mind, which means nothing in the US market) agressive advertising (Saab has done none in the US since Born From Jets-2006) the US market will return to Saab’s best world market until China comes online.
Aerostar. just to keep the discussion going, when do you believe Saab and prhaps the US dealers, should cut their losses. Yes the US market was great and for maybe even many years did Saab make money there. But the Costs are too high to maintain. The Aggressive advertising you talk about would be better placed, IMHO, in western Europe. Perhaps focus could be put on New England and parts of California.
I just don’t believe Saab can restart all markets at once. I say go for the profit margin close or mothball markets where you can’t turn a profit or managable loss.
Just my 2c
Alot of the US dealers are cutting their losses indicated by the discounts offered on the 2011 Saab models. There is no where near the margins offered as discounts..those are losers coming out of the dealers pockets. That being said the dealer count has dropped by 50 or so dealers who either have folded up shop (sadly) or dropped the brand (sometimes for Saabs betterment like many dealers who were dualled with Caddy/GM etc.) You may have a short term solution by bringing Saab marketing back to its roots in New England and the NYC and Philly and Washingto DC marketing area. Start there and branch out as the market forces dictate. The dealer network alone is one of Saab’s best assets as if it were lost it would takes decades and untold amounts of capital to rebuild.
On the bright side, north america isn’t costing Saab much of anything at the moment because they aren’t doing anything here (and even if they were, odds are they wouldn’t/couldn’t pay for it anyway). Just saying.
Still, in the future, I think the idea of withdrawing to a few key markets (northwest and northeast) is a good idea. Put Subaru in the crosshairs and start small.
Sorry for beinc cynical, but… Loyal costumers or awesome deals to clear inventory? What is the real reason for those sales? 😉
Both probably..
Regarding US/NA markets in general look above at Grumpys comment.
I then to agree with him.
Just leave the 9-4x there for a while, the Mexico build and engine choices makes it better suited for NA, and a lot of people like it.
Not so much the 9-5 at the needed price
And who in the NA market is going to sell just the 9-4X? Nobody can stay in business with one model, you need multiple models with differing choices within the same brand. That is what Saab has been pushing for and righty so. You close NA market you might as well close Trollhattan.
Maybe.
At the moment I am not so sure.
And I suspect that most surviving Saab dealers in NA at the moment are multibrand.
So let me rephrase the above: Keep prices in NA at the necessary and trim levels to generate income for the EU made models and at the necessary level to generate income for the Mexico made model(s.)
Do that math and you will see that the seller would be the 9-4X with a little rub off on 9-5 and 9-3.
I think the main problem that is killing NA dealers is the fact that they have to buy and keep a large level of stock to satisfy customers.
In the EU most cars are made to order. This is also one of the reasons that EU sales have almost totally stopped due to lack of cars while the NA market is selling at very low prices to clear stock.
Most are independents Khris. No doubt NA will need a new sales strategy, fortunately Tim Colbeck has some very good ideas he’d like to implement if he’s given the chance. It’s easy to make sweeping comments about what we think is best for the market, and a lot of times our comments are productive. But the situation right now is so incredibly complex (and f*@#ed right now to be honest) that you can’t just make a sweeping change to the organization without incurring insane costs. For one, laws won’t allow Saab to just dump dealers and two, the dealer network in itself in the US is a major asset, one that’s not lost on the Chinese. To pretend that the US is a throwaway market because margins are higher in Europe is a fallacy, especially when most analysts suggest sales in Europe will not only decline due to weakening economic conditions, but increased competition from of all places, China.
I understand this, it’s just that it seems that the dealers can not survive anyways on current sales, and the prices being paid especially when they need to keep large stock
I am in no way an expert on US markets but It seems like a killing combination on any market.
Hopefully Tim Colbeck has the ideas to make it work. I don’t think I will ever fully understand the NA markets on any goods.
US sells a **-ton of BMW 3series, Audi A4, Audi A8, Mercedes S-class etc. Millions of luxury cars annually. Saab can discover a way to price & compete in the USA. Or, probably it is over. Presently, the marketing head of Saab USA is the former Subaru USA man. He is someone who knows what it takes to sell here. It is a buyer’s paradise here. Saab’s pricing was a mistake because nobody ever paid those prices. It made residuals look that much worse. Meanwhile, the buyer’s guides print MSRP which was extremely unfavorable to Saab, and resulted in foot traffic at dealers falling to close to zero.
JMO 🙂 The cars are drop dead beautiful. Product is not Saab’s problem at the moment. The product is *very* nice. A NG 9-3 would complete the portfolio quite well.