More on Canadian sales
Putting a finer point on things…..
Saab Canada’s pricing issues and the subsequent 40+ percentage drop in sales is all-the-more glaring when you read this:
February was a record month for sales at new car dealerships in Canada, according to figures released Monday.
Total sales of cars and light trucks came to 110,951 last month — a 14.3 per cent increase from the same month in 2007 and greater than in any other February, DesRosiers Automotive Consultants said…..
….All of the big car companies saw their sales jump year-over-year, with the biggest increases reserved for the import nameplates.
I can think of an import nameplate I’d like to see included in that commentary…..
Saab Canada contend that they have their pricing set to the market and to their competitors. Many of you, and I, would beg to differ. There’s been numerous comparisons offered in comments to previous posts, especially with regards to the Turbo X.
Where this whole issue started was the matter of price parity with the United States. Given that the dollar has now stabilised at a level similar to the US dollar, many Canadians are looking very enviously at showrooms south of the border.
The clued in companies have responded with adjustments to vehicle pricing….
Some Japanese brands scored even bigger gains. Toyota’s Canadian sales jumped 28.1 per cent last month. Toyota was among several automakers that reduced the sticker prices on many of its models in February.
Honda Canada’s sales in February set a record — soaring 53.2 per cent.
“Serious price cuts at the MSRP level last fall and into this winter together with aggressive incentives together with some great products and you have a blow-the-doors-out February across most [automakers],”
Saab Canada say that most of the carmakers who have reduced their prices have also reduced equipment levels. Maybe so. But what the customer sees is a reduced price and a more affordable car. And regardless, I’d counter that argument with a comparison of US and Canadian spec Saabs, which are almost identical and therefore don’t justify the current price gap (analysis underway).
As ctm noted in comments, during February Saab Canada managed to sell just two cars a day in a Western country of around 30 million people.
The companies that have reduced their prices have been rewarded. Why can’t Saab Canada do the same?
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“Saab Canada say that most of the carmakers who have reduced their prices have also reduced equipment levels.”
Excuse…. You can’t tell me a base model 93 has more as standard that a Honda Accord
Facts are in the figures guys and they just don’t stack up. 2 cars a day in laughable, and it isn’t your dealers who are laughing. It’s no wonder all the talent is leaving and going to manufacturers that want to sell cars.
Are you people really that arrogant?
Want to know what a car costs in Europe? Or want to talk about the price difference between the Netherlands and Belgium? I’ll give you one example for the Aero TTiD base trim.
Belgium: €34.450 (or $52,407.8)
Netherlands: €46.290 (or $70,419.6)
And that’s sticker price without options. Still inclined to think you’re paying too much?
That is seriously scary stuff.
With such an unparalleled sales drop, I would like to think the current managements days are numbered.
It’s not just Canada that sets their prices too high.
In the netherlands we also see a SAAB sales drop. Market share is 2/3 of that in 2007.
On Feb 1st there was a change in taxes over here (CO2-related). Most of the competitors could lower prices, but a 9-3 in the spec that I am driving went up € 2.000.
Also when you compare prices (especially in comparison to the competition) and market share you see that the average SAAB-buyer seems to be more sensitive to the pricing than SAAB assumes.
Word on the street in Sydney is that a certain well-known, long -ime Saab dealer is struggling to hit double figures per month at the moment. Is there anything in the fact that the dealership has taken on Suzuki, Hummer and now NIssan without a significant increase in floorspace?
Ptitful though the Canadian figures are, I can’t see Australia being much better. Perhaps we’ll be pleasantly surprised but there are a LOT of 2007 ( & even 2006) cars selling as Used with
rest of comment…… ( this has happened a few times swade - often when I am at my most critical…??? ..!!!!)
And again?
Not sure, Pete. Only happened around a half dozen times in 9 months. Any chance you’re hitting the return key while you’re typing?
My point is that many of the 2006/7 cars only have minimal mileage and are clearly dealer registrations which are not moving off the lot.
These are boom times for carmakers but there is a lot of choice out there. Saab is being left behind.
weve been at parity with the american’s since last fall, the dollar is not going down only up against the funny money american peso it’s time for saab to wake up and smell the roses and adjust the prides accordingly!!!
Saab’s sales team must have not graduated high school.
We are talking about simple math here people….
The only European brand left for Saab to compete with is VW… and even then I’m not sure. Dealers must be absolutly thrilled about yet another concept car (which looks like a fancy Honda Civic suppository), which comes with no commitment to build something from it in any case. Why not put Saab out of its misery instead of bleeding it in public.
The only European brand left for Saab to compete with is VW… and even then I’m not sure. Dealers must be absolutely thrilled about yet another concept car (which looks like a fancy Honda Civic suppository), which comes with no commitment to build something from it in any case. Why not put Saab out of its misery instead of bleeding it in public.
The fact is that every one of Saab’s competitors have reduced their Canadian prices (or offered other major incentives) in the past year.
For example, the entry-level Mercedes B Class is now under $30,000, and it was priced the same as a 9-3 last year ($34,000).
What is really surprising is that GM can still find two Canadians Saab customers per day, when their money would clearly go a lot farther with any other brand.
I know that the manufacturers can’t adjust the cdn prices over night without hurting the value of used cars or trade-in values. How much impact would there be on Saab? They don’t hold their value as well as competitors.
Just comparing prices, the biggest discrepancies are on premium vehicles and not so much on entry levels. If Saab were to lower their prices, they definitly would sale more vehicles.
I hope the prices continue to drop so I can justify buying a new car.