Other websites have a Question of the Day. For me, there’s only one question that seems to be of consequence right now, and the answer might just provide the key to Saab’s survival.
Why are Saabs selling so poorly in 2008?
The scenario
Saab sales in 2008 are well down on 2007 levels in all of Saab’s major markets. Ironically, the only significant market showing a minor rise in June 2008 was the German market, a market Saab has struggled so much in over the last few years.
Here are the charts for Saab’s three major markets. First, the Swedish market:
Next, the US market, which is Saab’s largest:
And finally, the UK market:
Some of those charts don’t look too bad in places. But if you observe the trends in the last three months, in particular, things really do look quite dire.
Saab USA has seen falls of 33%, 25% and 57% in the last three months. The British market has seen falls of 10%, 31% and 29%. Even the comparatively steady Swedish market has seen double digit falls, being 17%, 19% and 7%.
Given that a degree of success is a key element to Saab’s continued existence, this is a worrisome trend. There’s a few possible reasons and one BIG point of concern. Let’s take a look at them….
There ain’t so much spending going on
Tradition states that when the US sneezes, many of the world’s economies catch a cold. Here in Australia right now we’re starting to feel the effects of the US credit squeeze. My own mortgage provider isn’t doing any new lending right now. With such an uncertain environment, it’s understandable that sales are down.
Most vehicle manufacturers are suffering to a certain extent right now. The only one that seems to have been consistently immune to falls is Mini (note to Saab with the 9-1 still on the drawing board: offering a combination of fun and frugality does have some advantages).
The 9-7x isn’t a tank, but it’s tanking
Saab’s US sales are down by huge numbers, as we’ve seen. One key reason for this, especially in the last few months, is the decline of the 9-7x. Like every other SUV on the market, the thirsty and somewhat excessive Saab 9-7x seems to be losing grip of whatever reason it had for being in the first place.
The 9-7x has been SaabUSA’s second-best seller since it came on to the market. Not any more. Sales in the last three months are running at just over one third of what they were in the first three months of this year.
The BIG concern
Saab 9-7x sales have tanked. But we know why and are not concerned. Saab 9-5 sales have been on life support for three years or so. Again, we know why and we know that it’s being replaced soon, so we’re not concerned.
The BIG concern is the fall in Saab 9-3 sales in 2008. Unit sales in the US are down by over 3,000 vehicles so far in 2008. They’ve sold 8,631 this year as opposed to 11,918 in the first six months of last year.
Saab 9-3 sales in Sweden for 2008 are still up on a year-to-year basis, but that’s because of the BioPower boost. Early in 2008, the Saab 9-3 enjoyed a massive statistical boost in sales terms due to sustained interest in the BioPower version of the car, which wasn’t available in early 2007.
The Saab 9-3 in 2008
This is the part that’s difficult to understand right now. Saab 9-3 sales are down by so much, and yet there is no doubt that the 2008 Saab 9-3 is a much improved car.
It’s quieter. It rides better. It looks more modern and purposeful (subjective, I know, but MHO). In Europe, it has the new TTiD engine available. So what’s wrong?
Is it the pricing?
I know there are some currency problems in major markets, but it’s entirely possible that they’ve got the car priced too high in comparison to its competition.
Is it promotion?
Saab advertising has been a bit more prevalent in the last two months or so, but for the first six months of the 2008 model year, it was virtually non-existant. I recall Steve Shannon saying in the middle of last year that their budget was going to be quite small and they’d have to pick and choose their advertising type and frequency. My advice to him is that whatever they chose doesn’t look like it’s been a success. Of course, if there’s data to prove otherwise, I’d be happy to acknowledge it.
Saab will need to continue to be careful about where they spend their money, but they’ve got to make sure they get a good advertising allocation and then spend it wisely. Winter’s coming in the northern hemisphere and Saab have a new XWD system. I’d suggest even Helen Keller could come up with something that will work OK there……
Are customers biding their time, or enjoying their Anniversary models?
Last year, Saab sold a whole bunch of 60th Anniversary vehicles that combined a very generous equipment list with some deep discounting. The big danger, of course, is that they would pull forward customers that might have waited another year to upgrade their car.
That’s one option.
The other is that with a new 9-5 on the radar, as well as a new Saab crossover vehicle, that some customers are playing wait-and-see. But then we thought that with the 2008 Saab 9-3 as well.
The fuel game
In 2008, Saab’s smaller engines get decent fuel economy and allow for some exhilarating performance. It’s a good combination that not enough people know about.
The world’s automotive landscape is changing, however. Right now. A history of turbocharging is nice for getting people to the museum, but it’s not going to cut it for the future. Reasonable fuel economy in 2008 isn’t going to mean diddly-squat in 2010. Companies that doen’t observe and respond to the change are going to suffer and Saab could well be one of them. They need for the GM beancounters to free up the technology - and the sooner the better.
Why hasn’t the DI engine in the Pontiac Solstice made it’s way into a Saab yet? Really, why?
Saab have a limited range of vehicles with minimal promotion. Whilst that range is going to expand in the near future, it’s going to expand with bigger and potentially thirsty vehicles - not necessarily the ideal in frugal times. Hopefully they’ll be more efficient than the competition. That will be a huge key to success.
So the question gets back to…..why?
Earlier today, I read an article by Mark Phelan in the Detroit News, where he talked about the Detroit 3 racing to build fun, frugal cars. As I read all the things he described as attributes of that genre, I kept ticking boxes in my mind - “yep, Saab have done that. Yep, Saab could do that. Check, yes.”
With so much to offer for the future, it’s essential that GM give them the support and freedom they need to make it.
That said, the fundamental question still waits to be answered: why are Saab sales, especially Saab 9-3 sales, going so poorly in 2008?
The Saab 9-3 is the key vehicle in the Saab portfolio. It’s a great drive. One guy I met at the launch in Sweden last year called it the 9-3 that Saab should have made right from the start. It’s better than it’s ever been and yet it’s falling behind in sales and really hurting the company.
Is it just a victim of poor economic times? Is it the victim of poor promotion and management? Are people holding off for XWD or for the all-new Saabs late in 2009?
Someone please let the genie out of the bottle so we can solve this.
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69 responses so far ↓
1 turbin
// Jul 7, 2008 at 10:56 am
Has anyone actually noticed the face-lifted ‘08 model??
Honestly, despite the hype the media here in Oz barely registered anything. Wheels magazine’s potted review in the Marketplace section went from bad to worse. We had the Turbo X and TTiD launch a week and a half ago and that has resulted in only 1 combined review of both models and a few general write-ups. Far from being something to light up Saab, the Turbo X has been met positively on the whole but has been underexposed.
On top of everything Saab doesn’t convert alot of customers, sells majority to existing customers and employees. Maybe there’s just not enough incentive to update. I found that, despite being sent offers to trade in with loyalty bonuses, free on-road costs etc.
With interest rates being what they are, I would have burnt money trading my ‘06 in and would have found the interest on my lease jumping siginificantly in line with changing from a rate fixed 2 years ago to the current substantially higher rate. There’s just not enough newness to convince me and even less bespoke Saabness in the ‘08.
2 Richo
// Jul 7, 2008 at 11:29 am
“The other is that with a new 9-5 on the radar, as well as a new Saab crossover vehicle, that some customers are playing wait-and-see.”
Not a chance, or if there is anyone it accounts for about 10 people, and those people are the die-hards here on TS. People don’t wait and see, they go and buy from another manufacturer.
I’m a great example. I am VERY brand loyal with everything I buy. I’m on my 5th Saab, all the people who know me call me a Saab guy… think I’ll be buying a new Saab?? No way, they’ve lost their mojo.
3 Kroum
// Jul 7, 2008 at 11:45 am
There is a big identity crisis behind this drop in sales. Saab seems absolutely incapable of stating its mission these days. It’s part GM, sure, but also it has a lot to do with the kind of people that manage the brand over in Trollhattan.
I have always been a critic of Saab’s Swedish management, and I will once again voice my opinion. Everything that made Saab cars great in their heyday is now subdued. It seems as if there is no passion left for the brand; surely, I could be wrong, but what made Saab great was the people who designed, engineered and built the cars. Back then, all the little problems and quirks could be easily overlooked because the product was gleaming with passion.
These days, it seems management is busier with wrestling over the new 9-3 production from the Germans than pitching their ideas to GM HQ. In case they have any ideas, that is.
Frankly - and I say that as a person who loves Saab and just got a band new one - as of late, they seem unable to innovate. It’s a catch-up game with the big boys now, but the difference is Saab seems poised to be just as good, instead of being better.
4 joemama
// Jul 7, 2008 at 11:50 am
Reasons:
1.) Economy. People are NOT buying cars. Period.
2.) Cost. 9-3 is too expensive for what you don’t get. Love the car, but needed the incentives to push the sale.
3.) Technology. Saab is SO behind. I won’t even go there as I sound like a broken record.
I can speak as a 60th Anniv. owner, and Swade you are correct. I held off on an 08 until the specs were released and I could see the car in person, and it wasn’t worth it. No XWD, options were too expensive, and no bluetooth. So I decided to buy an 07, save money, and wait until Saab gets their act together.
Having said this, 2009 sales should be good. People have been waiting for XWD, and on the 2.0T these babies will sell. Heck I might even upgrade!
5 LP
// Jul 7, 2008 at 12:00 pm
My thoughts…
(1) The reskin: A year into it, I’m still trying to figure out whether it’s actually an improvement. I’m not sure whether it grabs me as much as the older models did and as much as a new model should.
(2) Pricing: The value proposition just doesn’t seem that great for Saabs without incentives.
(3) Delayed features: Constant premature promises of advanced features (e.g., bluetooth, XWD) leave customers feeling like if they buy now, they’re buying something second best. After a while, this leads to buyer fatigue.
(4) The market. I would be curious to compare Saab’s sales change in the US relative to other European brands.
(5) Marketing: Saab marketing in the US is mediocre at best.
6 Alex
// Jul 7, 2008 at 12:13 pm
carefulllllllll….. - SW
I think alot of Saab’s problems in the US come down to price, and the 9-3 really exemplifies this. The 9-3 is a fantastic car, but it’s woefully behind the G35, 3-series, C-class, and especially the new A4 in terms of what you pay for what you get.
Sure, Saab has a much longer standard features list, but that means absolutely jack to the buyer who wants things that you can’t even get on a Saab like Bluetooth, a premium sound system, lane departure warning, fuel-efficient direct-injection engines (and don’t think that the Audi and BMW dealers aren’t playing those up either), and even something as simple as more interesting color and interior options.
Right now the 9-3 is a fantastic car when you compare it to the Subaru Legacy or some of VW’s offerings, but the problem is that GM prices it to compete with cars that it’s just not competitive against (at least in the eyes of people who aren’t Saab fanatics).
Compounding that is exactly what Kroum said; Saab has lost it’s groove and it’s uniqueness, and I think the turning point here was when they stopped offering the hatch. The hatch was more than a symbol of Saab’s uniqueness, it allowed the NG900 and OG9-3 to essentially compete in their own segments. Buyers didn’t matter as much that maybe the interior and handling wasn’t as nice as a 3-series or A4, because the unique bodystyle and the utility that it brought to the cars was something that you just couldn’t get anywhere else. Nobody was better at combining sportiness and practicality than Saab was, and that was the image that the brand had with the buying public. Saab was the thinking man’s BMW.
Now Saab makes sedans, sedans and wagons. Unfortunately for Saab, BMW, Audi, Infiniti, etc are all selling BETTER sedans. Sure we eventually got the 9-3SC, but by that point Saab had lost many of it’s core buyers to the Volvo, Subaru, and BMW wagons that all offered rugged practicality and AWD years before the 9-3SC 2.0T XWD. I think it’s ironic that one of the most iconic cars of the 00’s is a 5-door hatch with a space-age drivetrain and side profile that’s all too familiar to us Saab-o-philes. That car of course is the Toyota Prius, the car that in a way out-Saabed Saab.
7 peter
// Jul 7, 2008 at 12:33 pm
As someone who sells Saabs for a living, I don’t see new car buyers that are new to the brand because they do not know that Saab can give them what they are looking for.
Saab does have what they are looking for. It is the almighty MPG.
In the U.S. market, according to the EPA, the 9-3 2.0T tops out at 29 mpg highway with a stick and 26 (!) with the auto. The 9-5’s numbers are 28 with a stick and 26 with the auto. As Saab drivers we all know that these numbers are low. It is incredibly difficult to get numbers lower than 30 on the freeway with any 4-cylinder turbo Saab.
Volkswagen has/had the same issue with their new TDI that is debuting just about now, and they went to a third party to provide some more accurate numbers. http://www.vw.com/vwbuzz/browse/en/us/detail/The_people_want_better_fuel_economy_with_no_compromises/217
Maybe Saab should as well?
8 Greg Abbott
// Jul 7, 2008 at 12:36 pm
I agree with Kroum. There are many factors in this, but basically Saab has lost its mojo.
Saab used to stand for technical innovation — it was not quirkiness for quirky’s sake, it was differences that reflected passionate decisions by the engineers.
But modern Saabs are the jack of all trades and the master of none. In a crowded marketplace, Saab sells nothing that stands out. So when the market contracts, Saab feels the pain more than most because of its lack of distinctiveness.
9 2-don
// Jul 7, 2008 at 12:37 pm
I think the 08 is great and think that part of it is that people are holding off for XWD. Ofcourse times are getting hard for most and gas prices are hurting everyone and SAAB still doesn’t advertise like they should (great car but no one knows it) so….
For me honestly, I’m waiting for news on the 9-1. If that’s not going to happen then I will be buying a new 9-3. That is still a year or so away but I guess I’m playing wait and see. I totally agree with you about the MPG. That needs to get better no matter what they start making. That new 9-5 looks incredible! Want to steal lots and lots of sales from BMW and Audi and Lexus? Then let it get 25-35+ MPG! They won’t know what hit them! I know SAAB can do better and I can’t wait to say “I told you so”!
10 Jeff K
// Jul 7, 2008 at 12:39 pm
lack of advertising in the US, lack of GOOD advertising in the US, brand perception lower than relative pricing, overall line-up trumped by other marques.
11 Greg Abbott
// Jul 7, 2008 at 12:39 pm
The marketing in the US is terrible, it is true.
SaabUSA would do well simply to bring over the ads from the UK and Ireland. They’re already paid for, and they have a high-brow environmental/intellectual appeal that would be good for the brand.
Saab is the thinking person’s car. It should have an ad campaign that reflects that.
12 2-don
// Jul 7, 2008 at 12:56 pm
I totally agree with the thinking person’s car! Very Apple! They just need to make their iPod!
13 Tedjs
// Jul 7, 2008 at 1:18 pm
Car sales in general are way down here in the USA, so that defiantly plays into the equation. The graph of 9-3 sales is nearly identical to some extent up until May. That is around when fuel prices went out of control, so that may play into the equation.
9-3 rebates were much higher last year ($3500.00 in the June/July time frame) as well, so that may also play into the decrease in 2008 sales.
The 9-3 Aero SportCombi is a great car; however it was a much better deal with all that cash on the hood when I bought mine last year. If I were buying one this year I probably would have not gotten as much for my trade (fuel prices would come into play) and the Aero model may not have been an option. XWD is a cool option, but another couple grand would have had me thinking twice about checking that box.
A comparably equipped 2.0T would have yielded a similar deal to what I paid in 2007, but I would have been ‘wishing’ for a little more power and sophistication from that engine so it may have been a tough sell.
Wow, look at that – I just talked myself out of the ‘new’ car and I am not in the market for one.
Not that I would not have a bought a car (if I was in the market for one), I just would have waited. GM is famous for putting cash out there – especially when the 2009’s start rolling in.
It is not that I am cheap - just smart, and patient. There may be a lot of buyers right now just waiting in the wings for better deals to surface. I think the iPhone is pretty cool, but am waiting for a better agreement on that one as well (i.e. cut ties with the monopoly that is AT&T) – until then, I calmly wait.
14 zippy
// Jul 7, 2008 at 1:18 pm
Saabs pump out more CO2 which is very important in the European market. In North America the cars are overpriced and only a massive improvement in interior quality would allow Saab to price them like their German counterparts.
I drove a 9-3 1.9TiD 150 while I was in England this past two weeks. The torque is UNBELIEVABLE and I managed to get 44mpg with a very heavy right foot in combined highway/urban driving. I would buy one of these in a minute. You can floor it in fifth and it pulls like a locomotive.
Diesel cost USD2.60 per litre or USD9.88 per US gallon. Never ever again will I complain about the price of fuel here in Canada.
15 Steve C.
// Jul 7, 2008 at 1:19 pm
As someone who adores their ‘94 9000 Aero, even when it’s so often hard to love, this is what the hard truth is to me:
Saab just doesn’t have it anymore. Back in the old days of the C900 and early 9000, Saabs sold to people craving something interesting and different, leading to the whole played-out stereotype of C900 drivers being professors in tweed jackets with leather elbow pads.
Back then, though, the C900 was unique, with its divisive but impossibly Saab styling, its practical hatchback, its solid build quality and its - dare I say it - interesting quirks.
But now, there is none of that. The new 9-3 has turned into a cookie-cutter baseline European sedan, only without the brutal efficiency of a BMW, the ingenious interior design of (most) Audis, or the Italian soul of an Alfa Romeo. Its hatchback practicality is gone, its turbocharged appeal now widespread and no longer a true selling point, and its compromised GM build quality widely lamented.
For Saab to do well again, they have to do something that I see and loathe in all of the Big 2.8 - they have to be retro. Saab’s customers are by and large repeat Saab buyers, and in order to appeal to them they have to rekindle the flame of what brought them to the brand in the first place.
As for the 9-3, why not bring back a hatchback coupe version? How hard or revolutionary would that be? Bring the diesel over here to provide an oil-burning contender, beef up the interior quality, and maybe add some notability that isn’t hideous chrome headlight outlines or awkward Altezza-style lights.
As for the positively arcane 9-5, its replacement should have a hatchback like the 9000 of yore and should find a way to refine - or, I say with tears in my eyes, phase out - the 2.3 turbo-four. As much as I enjoy mine, it does not have what it takes to compete in the luxury car segment against nearly any competitor.
And also, find a new technological trophy. Saab could stand to be way on top with the likes of BMW, Mercedes, et al by adding Bluetooth, backup cameras, silly night vision HUD setups, et cetera. But Saab’s primary thing has always been one unique technology - turbocharging. Now that this is ubiquitous, you need something else. How about the shelved variable compression design that raised so many eyebrows? Imagine if Saab was identified with the revolutionary new VCE the same way people tie Mazda with rotary engines. Just a thought, but a 9-3 with a two-liter turboed VCE would be enough to bring the “different thinkers” back to the showroom floor again.
Sorry about the essay.
16 fred diesel
// Jul 7, 2008 at 1:22 pm
Why? Everyone thats commented has a part of it.
My biggest peeve is the godawful waste of time the GM V6 has been since ‘94. The 900/93 has never needed this engine, esp since a 23T-Viggenlike thing kills it.
Followed closely by the 92x abomination. Trying to sell Subarus at the expense of the then one-year old 93 was….
Then the lack of really pushing a 4 cyl diesel. I cant tell you the joy of boring 6.7L/100km(over 37mpg, doing 90, on bioD) in a 93. Even a smaller motor than the 1.9TTiD would more than adequately move this car. Not only would this bring new prospects in the door, everyone would be sold at list. Thousands of “lost sales” there.
No hybrid nothing. From Sweden? The electric everything place? Sorry, concepts dont count.
Finally the XWD with only the V6. OK…maybe ya couldnt see $4/gal coming…but youd be testing Plan B,C, and D wouldnt ya? Lutz?
17 xtcee
// Jul 7, 2008 at 1:26 pm
my questions and thoughts for the year…There will be more uncertainty this half of the year for saab as the aus economy battens down the hatches. my ss aero lease is shortly up, the wife wants to retire her 7yearold 9-3 hatch for the ss, the family is increasing in size and i can only mount one thule roof box on the ss. My replacement car was the new 9-5 earo in 09 but unfortunatley it is only propelled by tow ropes which leaves me thinking that gm is procrastinating over technology leaving me to procrastinate my next daily driver- my 63 stude gt hawk over the current 95, or an X for a year. The x trade and the switch in lease in 2010 will have to be worth it SAAB!?!
18 Troll96
// Jul 7, 2008 at 1:32 pm
1) Aside from the 9-5, the ’08s are better cars, so I think the decline has more to do with a change in market conditions than the cars themselves.
2) In the US, sales declined when the base price was raised and incentives expired. The impending loss of GM employee discounts is another disincentive.
3) Cars that inhabit the EPA’s 30 mpg niche are selling well, but Saabs fall short of that magic number.
4) Saab’s main product release for 2008 (the Turbo X) is touting performance when the market at large is demanding economy.
5) There is no TTiD to lure first-time buyers looking for better-than-normal economy in an upscale car,
19 smoke_jaguar4
// Jul 7, 2008 at 1:54 pm
The problem is there’s a huge gap between Saab the Dream (what could be) and Saab the Reality (what is). If the Saab lineup were a cheerleeding squad, it would consist of a 62 year old granny, an obese chick in spandex, and a skinny flat-chested brunette. We need to turn this around. Here’s my proposed line-up:
9-3: This should be the car for Saab traditionalists and enthusiast, getting back to the 99/900/OG9-3 line. It should offer 3 or 5 door hatchback, FWD or XWD. It should be slightly smaller than the current 9-3 and weigh less. Most importantly, the only powerplant offered is the GM Direct Injection 260HP/260 Ft-Lb Turbo LNF Ecotec. Note this removes the need for a 9-1.
9-5: This should be a larger, more traditional vehicle. An update to the 9000 series with 4-door sedan or Sport-Combi. Turbo DI V-6 generating 300+ HP, yet 30+ mpg
9-4: Only because it seems like every brand needs one. It should still have a Saab unique engine (turbo) and interior. No more pushrod V8 Saab. Ever.
Aero-X: The flagship; build this frakking car already. Take the GM Y-platform (Basis for Corvette, another 3-door hatch…), give it a 400+ HP ethanol/E-85/Gas engine, XWD.
20 J
// Jul 7, 2008 at 2:18 pm
The main reasons:
1) Lack of advertising in the USA. BMW/Lexus/
VW/Audi/etc. are all over the billboards, TV,
and print ads. *barf*
2) Pricing.
3) Where’s the turbo hatch? See how
fast those Mazda “3″ hatches are selling?
Subaru hatches are flying, too!
21 Gunnar
// Jul 7, 2008 at 2:27 pm
joemama’s correct. It’s the economy and gas prices that are keeping Saab sales down. Then it’s competitions from the Teutons.
22 ehall1
// Jul 7, 2008 at 2:57 pm
A couple of people have brought it up already, but I will bring it up again. NO ADVERTSING! I have yet to see a single SAAB advertisement. Not on television, not on billboards, not on radio. I am constantly bombarded with advertsing from all of the other players, even Hyundai, but not one single SAAB.
Even though what everyone else is saying about the inside amenities is true. What difference does it make, if no one knows SAAB is still around. I have had numerous people remark after seeing my 9-5 that they didn’t even know that SAAB was still around.
To me that means that the only people that even go look at them, let alone buy them, are the old SAAB owners, and eventually they will deminish to zip.
23 Conor
// Jul 7, 2008 at 3:16 pm
Advertising aside, I think its the simple fact that the US economy has tripped up, most people just dont have the funds to enter into the premium price frame during these times.
Some things i’m lookin forward to. Hopefully to greatly improve sales.
1. New 9-5 (Sedan, Wagon, Hopefully in a sport coupe varient as well AKA Aero-X)
2. 9-1 Hybrid…big money maker i think.
3. VCE, I agree with Steve here. A VCE would be amazing. perhaps beyond most buyers comprehension, but still amazing.
24 Edags
// Jul 7, 2008 at 3:18 pm
I’m very curious to see what happens with the 2009’s. I think Saab is taking a big step in the right direction by adding a Aero look to the 2.0 (I hope that includes improved suspension as well) as well as XWD and bluetooth. Obviously the interior will still be below that of the European competition and it will still be lacking a direct injection engine but will allow them to offer a better looking car with better gas mileage (than the 6) and with a nice differentiator (the XWD system) at a more affordable price point. What still amazes me is that the ELSD option will not be offered. Where’s the logic that you need to have a bigger engine in order to have the best handling.
The hatch issue is a no brainer but that can’t be solved until the next generation.
25 Conor
// Jul 7, 2008 at 3:22 pm
As far as the SAAB name goes, I have never had anyone scoff the brand. Everyone I’ve ever talked to about cars treats SAAB’s on par with BMW’s and mercedes(whether they are or not is not the point). perhaps its their elusiveness.
26 Markac
// Jul 7, 2008 at 3:48 pm
I’ve never liked the current 9-3 and I’ve always believed it would have a much shorter life than the 9-5, still I would’ve thought the MY08 update would’ve given it at least a couple of good years? I think the 9-3XC will help sales along a bit, but if it’ll be enough is anyone’s guess?
I disliked the current 9-3 when it was released because to me GM seemed to have learnt very little from earlier Saab models. It basically said
let’s make a care like the opposition is making and then try and make it a Saab. It didn’t work then and still doesn’t now. Sure it has tried hard to make the car more Saablike and the recent facelift is a testament to this, but perhaps there wasn’t enough Saab DNA to start with?
Yes there were some decent ingredients in the car when it debuted, but the mix has just never seemed right to me. It’s not just the lack of coupe/hatch models either. There’s something tangible that’s missing and I still can’t put my finger on it.
It’s a long wait to MY2012 when there will probably be a replacement and hopefully GM get it right this time, but in the meantime sales could well become like the 9-5 for the past couple of years and that is worrying.
27 1985 Gripen
// Jul 7, 2008 at 3:56 pm
Just saw the new U.S. Saab commercial during Le Tour de France coverage on Versus channel this weekend.
Saab is FINALLY doing something with their advertising we’ve been urging them to to FOR YEARS now: they’re advertising the fuel efficiency and the TURBO.
The commercial points-out that Saab recycles energy from the exhaust and even posts the EPA estimated fuel economy numbers on the screen. Of course, as was mentioned above those numbers are probably on the low-end, but for someone who thinks that their Chevy Yukon Two-mode hybrid is getting good mileage at 20 mpg highway, I’ll bet 29 mpg looks pretty darned good. There’s also a Honda Pilot commercial running right now where the owner proudly tells someone about it’s “up to 23 mpg highway” mileage as if this is something to brag about. I know I’m comparing apples to oranges here (SUVs to sedans), but it’s nice to see Saab doing something the great majority of us have been saying they should do for years now (advertise their efficiency).
Also, Saab USA has a “72 hour event” running now which has been extended through 7 July, in which they’re offering 0% APR for 72 months on selected models. I don’t know what the “selected models” are but they have a picture of a Lynx Yellow ‘vert and a 9-7X.
28 BaRa
// Jul 7, 2008 at 5:04 pm
If the Vectra will soon be replaced by the Insignia, then why on earth would you buy a 9-3 now if you could have the brand new variety of the 9-3 in the near future? If I were in the loop for replacing my 9-3 (’04), I’d have a hard time picking one. There’s not a single brand that offers anything I like. The premium cars are too heavy, consume too much, and have a bland design (either outside or inside). I might go from a 9-3 to a 9-1 if that one ever comes out - just because it’s got that typical Saab awkwardness. Reminds of how quirky the 900 was. NOT the 900 NG, that was and is rather mainstream, but the classic 900. Give me that in a new skin, and it’ll be my next car.
29 SaabKen
// Jul 7, 2008 at 5:05 pm
I think pretty much everything I wanted to say on this has been said above.
However I should note that in the past two months alone, I’ve seen more ‘08 9-3 SS and SCs than I’ve seen of ALL facelifted 9-5, 9-2X and 9-7X ….. combined. Ever.
Despite the official sales stats, from a day-to-day point of view, my local Saab scene is looking better and better.
Oh, did I mention we’re going from a one-Saab dealer metropolitan area to a planned four dealers ? This from a guy who works for a local family-owned GM franchisee firm who just recently bought out that sole Saab-Saturn dealer !
http://www.dueckgm.com/lansdowne/index.php
30 Markac
// Jul 7, 2008 at 5:24 pm
BaRA: The next 9-3 will be on a different platform to the Vectra replacement. It’ll be Delta II like the next Astra, but it will still be a long wait after the next Astra arrives before we see a new 9-3. The 9-1 should arrive on that platform first and will be much closer to the Astra in size, but I’m becoming increasingly doubtful that it’s a car that will ever be produced? I guess the 9-X BH will have it’s place in the Saab museum alongside the 9X and the 9-3X…
31 Richo
// Jul 7, 2008 at 5:58 pm
“Economy. People are NOT buying cars. Period.”
There were 1 million cars sold here in Oz last year, a record…. me thinks cars are being sold.
32 Jimmey
// Jul 7, 2008 at 6:26 pm
I can just speak for me and my wife. We had a Saab 9-5 from 2000. Last year we decided to change it to somthing new. We looked at the facelifted 9-5, but the interior just looked the same old boring 9-5.
We neeeded a family car and we thought the 9-3 was too small. So the options was few.
My wife (who primarily drives that car) liked SUV’s - so we went shopping. We bought a Honda CR-V; which im still not very found of. If the 9-4x hade debuted earlier; the choice had been much easier.
We live in Sweden - so we just have to wait a year or two before we can change the Honda for the Saab 9-4x.
Me myself drive an Saab 9-3 aero (2005). About the exchange it in the coming year. Even though the new facelifted 9-3 and specially the Turbo X is very tempting; im not sure. I really like the Audi A4 too, but its a little bit too pricey. The 9-3 2.0T Aero with XWD in WHITE (please let there be white Aeros) is probably what ill buy.
33 ctm
// Jul 7, 2008 at 6:50 pm
Because of a lineup that consist of:
- one outdated midrange sedan/combi that had a nose job last year
- one severely outdated midrange sedan/combi that had a nose job three years ago
- one rebadge American truck
Or it’s because that when the economy is turmoil, people don’t spend a premium amount of money on an old car from one of the smallest brands in the world - a brand from god-knows-where across the pond and a brand that has been on life-support for 18 years and a brand who’s existence is questioned every week in the auto press… No, they spend it on a car that is easy on fuel, looks modern, has new gadgets in it, and that is from a brand (and dealer) they know gonna be there 5 years down the road.
34 Jürg
// Jul 7, 2008 at 7:20 pm
I love Saab’s since I got my first 99 Turbo back in 1984, but I must admit that compared to BMW and Audi they are way behind in my opinion. My reason to buy another one in the future is “that not everybody has one” but thats not a good argument for Saab, because what happens when they are successfull
?
Saab is behind in 2 important categories:
1) Technique: Everything they have, they got it 2-3 years after BMW and Audi (if it is a necessary feature or not), the fuel efficency compared to BMW Efficent dynamics is terrible and no innovative Start/Stop System or Hybrid combined with Bioethanol is on sight. To be positive, Bioethanol is a good thing unless its not produced out of food or rainforrest territory.
2) Line up: Saab is (in Europe) a 2 Car brand! The 9-5 is so old that even my grandma wouldn’t buy it anymore, despite the incentives they give to sell it. The replacement should have been introduced 2-3 years ago!!
The 9-3 is a nice car and with its XWD extension and Diesel engines at least some kind of a range. But why no hatch back, no 2 door coupe, nothing to serve more individuals (Saab is THE BRAND for individuals)
If I would be King for a day at Saab, I would extend the range massively (9-1, 9-1 electric, 9-3 2-door coupe, 9-3 hatch, 9-4, new 9-5, 9-5 extended (real luxury) and boost the fuel efficency with Bioethanol, Hybrid and eventually Hydrogen.
And last but not least: Get the spirit back Easy task? Isn’t it?
We’ll see what happens, but as a Saab Fan I’m unfortunately used to break up scenarios.
35 socal_eric
// Jul 7, 2008 at 7:24 pm
I’d suspect here in the US that the overall economy, lack of advertising, and the cars getting up there in age and pricing are the biggest reasons.
Now for me personally, my local dealer has a Turbo X that I’ve been looking at, I like the car, and have seriously been thinking about it. Why haven’t I made the leap and signed the dotted line? Incentives. I’ve watched the last couple of years where the 9-3 and the other models blow out at the end of the year with $5k, 6k, even $9k or more off sticker. We’re getting to the end of the 2008 model year and I’m looking at a $44k Saab, then remember back to the end of MY07 when loaded Aero’s were going for $26-27k. I think at those prices the current Saab’s are fairly competitive. At sticker/list/MSRP they are not, and as much as I’d like to drive one, for the same amount of money there are other cars I’d consider and lean towards.
I might have missed it and I’m not sure if anything has been posted here about it, but when GM started their recent 72 Hour Sale promotion event just before the US holiday period they had both Turbo X models listed on their web site sale page. With zero percent financing for 72 months I would have bought one. As a matter of fact I was at the dealer ready to purchase one but the dealer was saying they didn’t have any info and were only showing the convertible and 9-7x on sale. After emailing Saab and the “marketing center” they admitted to making a mistake and pulled the Turbo X from the GM.com sales page for the event.
I’m going to sit back and play the incentives game and hope there’s a Turbo X still around when they go further on sale. If not then the ‘09 9-3 Aero XWD’s aren’t looking too bad (but I’ll wait for incentives on those too). That’s kind of my personal line of thinking and reasoning right now. The Turbo X already has over $3k off in rebates/dealer cash and I’ll wait to see how low it will go. They’ve played a dangerous game over the last few years dumping giant incentives on the cars late in the year to maintain sales but that’s hurt resale and leads to situations like mine. If they can come out with some truly outstanding and desirable cars that can and will sell for sticker all the better for them, but GM in general has found it very hard to get away from the low hanging fruit.
36 Edonis
// Jul 7, 2008 at 9:02 pm
Most of what I was going to say has already been mentioned by others before. The economy around the world isn’t going so well these days, Saab has a small and ageing line-up, and the competitors have new cars. As much as I like the 08 9-3, it feels a lot older and not as premium as say the new C-class or new A4.
But I’ve actually seen quite a bit of advertising from Saab. I regularly buy CAR Magazine (is there any better car mag?), and they have advertised a bit for the Turbo X there. And in Norwegian magazines and newspapers, you can see some Saab ads from time to another.
37 lance
// Jul 7, 2008 at 9:10 pm
If Saab had built the small Saab it has needed for so long, it might not be in this mess.
Saab has not always been ‘premium’ in brand terms- executive luxo barges were not its founding core: A small car was.
I think someone has forgotten this…
Turbo X - great car - but where is the modern interpretation of the 92 -96 range?
Cue the new Vauxhall /Opel Corsa with styling mods by me and a Saab badge….
Lance Cole
38 AlexM
// Jul 7, 2008 at 10:00 pm
For one reason, pull up on the seat adjuster in the Saab 9-3SS vs a Volvo S60. What a turn-off for the buyer of the 9-3!
For another, the 2008 body style for the 9-3 is a major disaster. The 2007 was a sophisticated lady, the 2008 is a prostitute!
BTW, I’ve owned 16 Saabs, since 1963.
GM has killed the brand.
39 wilfried
// Jul 7, 2008 at 10:22 pm
Saab needs the 2 HALO-cars.
A big expensive one (Aero-X as a 8C-concurrent, if Fiat/Alfa can make such a car why can’t GM/Saab do it?).
A smaller payable one (9X as a TT and TTS concurrent).
It needs the HALO-cars in order to be talked about.
The Aero-X astonished everyone and got on cover of many magazines. Presence in a movie would do good, if not GI-Joe.
But the interest diminished for general pubic, certainly when nothing happens.
A few alloys in turbine form would’nt help that (mercedes already had them on their new SL’s and on SLR before).
TTiD needs XWD.
Maybe TiD needs XWD too.
9-5 needs TTiD and XWD too.
More interior choices & styles to choose from.
More diesels in 9-5.
More bold colours.
More ad-campaigns.
More celebrities in a Saab insted of in a Hummer.
etc
etc
etc
They should manouvre them in a position in order to be the talk of the town.
40 wilfried
// Jul 7, 2008 at 10:26 pm
I forgot : More journos praising the saabs above the well known qualities of the kraut-cars, the french baguettes, the italian lovers & the far-east rice-cars.
41 Adam
// Jul 7, 2008 at 10:27 pm
As one who quit the brand this year, but keeps returning to this website for reasons I can’t explain, I’ll tell you that it’s all of the above.
Price, lack of distinctiveness, age, reliability, lack of small car to name the primary reasons.
To me, Saab right now is where Infiniti was in the early 2000s before the G35 came out. It’s lost in the wilderness with an old, derivative line-up which has no cognizable brand theme.
42 Howiez5150
// Jul 7, 2008 at 10:38 pm
I personally love the look of the ‘08, but I think pricing, advertising are the two biggest killers around. I live in a Saab city…Atlanta, GA. We have three dealerships and I average seeing at least 5 Saabs a day. However, I rarely see any advertising and could about guarantee most people have no idea the 9-3 has new look or much else about current Saab lineup. I myself was caught shopping for a Mini on-line just out of fun yesterday. Small, fun, frugal, and priced dead on. It is one of few cars that I may buy next that isn’t a Saab. Saab wasn’t always about going after the high end market. My dad drove Saabs for years(his dad had first dealership west of Mississippi river). He didn’t brag about how fast or high end they were. He talked about value, safety, and some performance. He always talked about how engine would drop in crash. He tested theory with a bridge once. We could also haul three kids in back with seat down, obviously before seat belt usage became standard. His last 99 was a true SUV!!
Saab needs to build a small sporty and inexpensive car. Look at the Mazda3….fun to look at and priced right. If you want value and great mpg…you go base model for as little as 15k. If you want a rocket ship….you go with the SPEED3 and pay about 23k, which is what Saab was trying to sell 9-2x for. Saab needs to compete with Infiniti and Audi, but they need to how some wow factor to bring people in the showroom or some advertising of any sort.
One other US factor cold be that SUV trade-in values having plummeted… people would like to trade their tanks, but aren’t able to get anything for resale. I have a friend that was told by Carmax they weren’t talking any SUV’s at this time for trade.
43 aznsaab
// Jul 7, 2008 at 11:06 pm
my 2 cents read them or don’t: Speaking from the US market, … well I don’t really need to say anymore. Everyone here is broke and the world knows it. Citing numorous industry reports all brands and marques have experienced a large decline in sales for the month of june. The only exception is honda with a whopping 1.1 % gain. I skimmed through some of the comments above but didn’t read through all of them. Saabs are expensive but when compared to other euro makes it’s a steal because you get the GM 10yr/100k mi Warrenty plus saabs service histroy. I could care less about the platform or how old it is. I love the new look. My observations from the detroit area: It is very distinctive! Many people do not know of saabs or their technology. They need to step up advertising and enter pikes peak, do a talladaga run, and put that beautiful AWD system back in WRC with per eklund at the wheel to send the scooby’s back to japan. (I love subaru but saab stole my heart) I think if the bio power made it over here you would see those sales pick right up. I’ve explained the concept to a few friends and coworkers and they were stunned. The bigger point being that they did not know of it. I bet it would also sell well with the eco-nutz over here. last but not least, you could by a german lead sled for the same amount but then you would be glared at everywhere you go because people assume you are a pompous, i mean unless you are into that.
44 Ned Luce
// Jul 7, 2008 at 11:27 pm
All the main reasons have been mentioned: the weak U.S. economy; aging lineup; MSRP too high; horrendous advertising; weak interiors relative to other imports; lack of upscale features like Bluetooth; FWD in a RWD/AWD segment, etc. When the economy is weak, the less-established brands will suffer most, as consumers gravitate toward “safe” products, especially those known for economy and reliability. That’s why Honda actually showed growth in the U.S. last month.
And that gets to a major issue surprisingly few folks have mentioned — Saab’s poor reliability. This is a huge problem, and makes it difficult for me to recommend the marque despite my passion for it. Go back and read about the troubles Automobile magazine had with its long-term 9-3 about four years ago. It was a nightmare, and many owners have similar stories to tell. Mercedes can to some extent get away with poor reliability, but a “fringe” player like Saab cannot, especially when, due partly to poor advertising, the public is not aware of Saab’s compensating attributes of performance, utility, and economy.
I still love the brand, and might very well buy a 9-3 next year when the 2.0T is available with the Aero suspension and appearance. But with the outstanding dynamics, interior, and reliability of the Acura TSX, the 9-3 2.0T is a very tough sell. Like socal eric, I’ll only go for it with massive incentives, as I did with my 9-5 Aero in late 2001.
45 old salty
// Jul 7, 2008 at 11:29 pm
This past Spring my wife and I were in the market for a new car. We’re in Canada. We had been looking forward to a 9-3SC for a couple of years. It was our #1 choice after test drives, ignoring price. We could have afforded the asking price but we went with a Passat Wagon (2.0T). Why? We would have felt stupid (and I use that word judiciously) paying the asking price when compared to: US MSRP for same car, pricing of other cars in Canada, and value. How ironic: we didn’t buy the “thinking person’s car” because had we done so we would have felt that we had not made a wise decision. If the sole criteria was the emotion we felt when driving - we would be driving the SC right now. We would have willingly paid a premium for that feeling, but not what the wise folks at GM Canada were asking of us. I pleaded with the dealer to make our decision difficult - but his starting MSRP was too much to overcome.
46 zippy
// Jul 8, 2008 at 12:31 am
SAABKEN, that is great news for Saab here is V*ncouver. Can we please have a few Saabs on the front lot instead of Saturns and secondhand Mercs and Infinitis?
When is the plan to open more dealers?
OLD SALTY, you hit the nail on the head my friend! Their is no premium feeling in my local Saab dealer - more second hand car lot!
47 JOHN
// Jul 8, 2008 at 12:48 am
Most of the comments above are correct and the bottom line is the association … GM. It was a turn off when this giant took over and it remains a turn off to this day. There’s been nothing but negative rumors regarding Saab’s life expectancy under GM (again this morning in the Wall St. Journal) and most buyers are simply not interested in a slow dying product. If Saab were to leap frog the competition with a couple of revolutionary or advanced products, it might stand a chance to make a comeback. But, although excellent, it is perceived as another run of the mill car, and generally behind everyone technologically. Even if a new 9.5 were to stand head to head with the likes of Audi & BMW, it won’t do much. It would have to blow doors off or come in as an incredible value to edge forward. Many of us (in & out of the business) are quite saddened by its downfall.
48 zippy
// Jul 8, 2008 at 12:53 am
Added to what has been said re advertising did GM not approach the likes of Automobile magazine, C&D, Road & Track or Motor Trend with a TurboX and say ‘go for it!’. Uh, NO!
I think I saw more new Saab 9-3s (and loads of SC models) on my recent trip to England than I will see here in Vancouver all year. Here in Vancouver I have seen a grand total of two 08 models, one of which was a Washington registered Turbo X SC.
Another big problem is a few of those buyers of the TurboX, having spent over US$42000 on said ’special model’, are going to be so p*ssed off when than can buy an Aero specced up to the TX in any colour they want next year. Those high-end customers are the ones we need to treat like royalty, not p*ss off.
49 Gordon
// Jul 8, 2008 at 12:59 am
a 20-something a relative of mine was looking to buy a new car last year and I suggested to him that with the huge incentives both SAAB sedans were a great value. He asked if the SAABs had bluetooth, navigation, and MP3 player integration. He bought an Infinit G35 with all that and loves the back-up camera too.
50 Tedjs
// Jul 8, 2008 at 1:19 am
Ned: Good observation on the Acura TSX. TSX sales were actually up last month according to Automotive News, which can be attributed to the 2008 redesign - And I consider the TSX to be a prime competitor to the 9-3 2.0T.
Honda’s strong dealer network and reputation are clearly something to factor into the sales equation for a consumer. Lucky for Saab that Acura did not bring the Accord wagon to the states with a TSX badge on it… That would have really been competition to the vastly underrated and unknown 9-3 SportCombi.
51 BaRa
// Jul 8, 2008 at 1:43 am
@Markac: Astra, Vectra, Delta - what’s in a name. I never managed to keep the Opel (Vauxhall? GM?) naming system in my mind. Point is that for a lot of people, there’s a fixed link nowadays between a platform being used by Opel, and the same platform being used by Saab for the 9-3. And if Opel’s coming out with something new on a new platform, and that something is spearheaded at the premium market, then for a lot of folks it’s just common sense to expect a new 9-3 based on that same platform. Whether it turns out that way or not, is a different game. It’s all about perception
52 wilfried
// Jul 8, 2008 at 2:17 am
Do I need to go on ?
(a bit Alfa-comparisions again, I guess Swade doesn’t mind)
If Alfa manages to put in the 190 hp 1,9 twin scroll JTD into the MiTo (OK that might not happen - but a stronger petrol version is already announced), that is tempting even more than the package they start to sell end of this summer.
So Saab needs a smaller car soon, a 9-1 or 9X B-H or whatever they will call it (shouldn’t be MiTo or Miniformat - but a decent Golf/Scirocco/bmw series 1/ovlov C30-opponent is needed, why not just call it 9-2X, that wasn’t a that bad Saab, was it? So they have the 9-1 combination for a future small Troll fighting the Mini’s of this world ).
And please bring back a coupe, even if the last 9-3 was a 9-3 5-doors derivate (same as long before that the ultimate 900), does that matter ? I.e. the Alfa GT is an old generation 156 with a 147 dash-interior. Look at the Series 3 coupé & the Audi A5 (not to mention the power derivates M3 & S5, a 9-3 coupé, decently Hirsched wouldn’t that make a sensible alternative ?).
So again, when Fiat/Alfa can come up with those solutions, why can’t GM/Saab ?
Alfa is offering a limiited slip differential in both 147 & GT, called Q2. I haven’t driven one yet, and surely not as efficient as a XWD, but makes a nice inbetween. Reviews I have seen so far praise the Q2-system and handling is far better.
The old 9-3 coupés are driving relatively a lot around here. The coupé-buyers then have no alternative in the recent range, unless you take the convertible, which has a different imago and a higher price tag.
Look at the C- & E-klasses. What an exhaustive list of different motorisations. A 9-5 with power of the E-klasse AMG, why not ? Makes it a HALO-car in its own class.
My point is they have to offer more. Starting from the existing range, more could be possible. The Fiat/Alfa comparision shows that.
Of course we could argue about ressources and development costs.
But if they do not consider more options and choices and models and colours and interior styles and so on, sale figures will not go up either.
More marketing and more aggressive - but refined - ad campaigns will do the rest, but are no substitue for a too small range.
The engineers need to work fast & good first.
The designers work very good, they showed us a lot already.
And the marketeers should bring out something clever about real-world-safety to tell everybody that 5 stars at EURONCAP with a Saab is something far safer than the 5 stars for i.e. Renault & the likes.
(And unfortunally, I am afraid BioHybrid isn’t going to be the smartest route to raise sales not in short neither in long terms, it seems, if Europolitics are developping further in the direction taken now).
But Bara is right, it is all about perception.
But then look at Audi and where they came from, if there wasn’t the quattro in the eighties and the lot of efforts and successes in rallying, followed by a continuously attacking BMW & Mercedes in the nineties … Those are not laughing about Audi as they did before.
It takes time too, for Audi more than 2 decades. I hope GM consider these things, but it needs investment & dedication.
Maybe a strong person like Piëch was at VAG is needed at GM/Saab ?
As long they not swith the designers-direction and gives us cars in the Bangle & Da Silva trend. The design direction like known now and the way it evoluated in the past is just fine.
And about motorsport:
Surely all TS-readers know about the Carlsson and the Eklund stories, but that doesn’t live in general public and is partly to much history.
Which brings me to the point I’m still figuring out today: how was it possible no GM or Saab marketeer ever did something with the overwhelming Pikes Peak stroll Eklund showed us ?
53 joemama
// Jul 8, 2008 at 3:42 am
Gordon - Exactly. This is what I’m been badgering about for years. My local Saab dealer even thought I was nuts that no bluetooth was a deal-breaker.
They are slowly learning. These corporate suites need to learn how to use the Internet to learn about what their customers want.
54 jc_atl
// Jul 8, 2008 at 4:38 am
I confess to not having read all of the above comments but I’ll just toss off a few thoughts of my own.
The 9-7X was a failure from the get-go. Sure, they sold a few when they made them very cheap to buy, but it was just a bad idea. That a poorly conceived re-badge of a lackluster GM SUV is failing in the days of $4/gallon gas in the US is no surprise at all. As the saying goes you can’t put lipstick on a pig.
Why is the 9-3 failing to sell? I’m afraid that to the general masses SAAB is no longer perceived as anything in particular other than an also-ran against Audi, BMW and other marques that are and have been killing them in recent years, and it’s only gotten worse. Add to this the black mark of being a “GM” brand and there goes any illusion of “premier” or exclusivity - under the GM umbrella this distinction is preserved for Cadillac and Cadillac alone.
Look at primary the competition, Audi and BMW, both of whom have rolled out new product since the 9-3 was created. Sure, the facelift is something new but who got excited about it other than people who frequent TS and other SAAB fan sites? I would be surprised if many people still cross shop the 9-3 against the A4 or the 3-Series. On top of that the vastly improved A4 is just over the horizon and so if it were my money and I was in the market, I’d be awaiting the A4 to at least shop it against the SAAB. I know the interior is better, and it’s a fine looking car, so I’d wait for the A4, or, BMW’s 328i with its excellent inline 6, which frankly comes close to SAAB’s turbo’ed 4-cylinder in fuel economy and is faster to boot.
SAAB’s ONLY HOPE is for GM to cut them loose. I think if they stay with GM, they perish eventually. If they get sold there’s at least a fighting chance that someone with a clue and a desire to make them a true competitor again will take over and right the ship. If I’m GM at this point I stop throwing good money after bad.
55 1985 Gripen
// Jul 8, 2008 at 5:58 am
Would it be fair to say that Saab has completely failed (I’m not pointing fingers or laying blame as to why right now) at competing with the competition GM intended it to when they purchased Saab?
Saab always “made their own road” before. There was no real DIRECT competitor to them. Then GM came along and wanted Saab to be their Mercedes/BMW/Audi killer but didn’t give them the resources to do so. This strategy seems to have failed in regard to Saturn as well. That marque was originally created to be GM’s “import killer”.
I think this stupid “premium” experiment should be declared OVER. Make a Saab that is unique and what people want (which requires you actually get feedback from potential buyers in your target demographic). Give up on trying to steal sales from the Germans. It’s been a miserable failure. Go back to the hatchback layout. Try doing something “different” and release the world’s first production hybrid convertible (it doesn’t even need to be a plug-in at first if they don’t want to steal some of the Chevy Volt’s thunder). Take some chances and do something different for once.
GM wants Cadillac to be the player in Europe they originally intended for Saab. Let them.
Oh, and to SoCal Eric (comment #35 above) is it any coincidence that the only two Saab models included in the “big sale” right now are their two most expensive models? And the 9-7X is now probably one of the least desired Saabs with the price of gasoline increasing and the fact that this is its swan song year.
56 SaabKen
// Jul 8, 2008 at 7:18 am
On Jul 8, 2008 at 12:31 am Zippy said:
“SAABKEN, that is great news for Saab here is V*ncouver. Can we please have a few Saabs on the front lot instead of Saturns and secondhand Mercs and Infinitis?
When is the plan to open more dealers? ”
At one of our recent club meets at Coquitlam IKEA, we ran into a young guy who’s management with Dueck. He said in addition to the Lansdowne Saab-Saturn moving to corner of Steveston Hwy/Hwy #99 (you can see the building going up now), the large Dueck dealership on Marine near Main St. will also sell Saabs. There’s also plans for another Saab dealer in downtown, and possibly a 4th in North Shore.
Things can change of course, with the recent economic downturn. But the fact that Dueck picked up Saab can only be a good thing !!!
You *have* joined SCWC, haven’t you ?!?
57 Beren Erchamion
// Jul 8, 2008 at 9:40 am
To me it is probably a combination of things….and it probably changes based on demographics. This is why it is so hard to solve.
Saab is trying to be too many things. An SUV + Born from Jets does not make sense…neither does a 9-2 Subie. The market target and the message need tuning.
Toss in a bad economy + plus people waiting on cool new models.
To top it off rumors are flying (sorry bad pun) around in the US about Saab getting sold off or worse.
Toss all these things together and it is surprising sales are this good.
58 Scott
// Jul 8, 2008 at 11:56 am
I am enjoying my 07 anniversary convertible but called the dealer today because I had been eyeing a new ‘08 vert they had on their lot and asked the to give me a trade in value on the ‘07. I was expecting to loose a few grand but they came back and offered me a trade in value 10K lower than what I owe on it. The trade in value was also about half of the retail value of the car which really surprised me since it was only a year old. He said the main reason was because of the slower sales on the ’08s they can’t offer much for the ’07s since they will be competing with the ’08s. Looks like it will be a few years before I buy a new one…looks like it’s time for some mods since I’ll be holding onto this one for a while…
59 Richo
// Jul 8, 2008 at 1:44 pm
Cars are selling here in Oz
60 WC
// Jul 8, 2008 at 1:47 pm
My wife and I recently purchased the 9-3 convertible using GMs 0% financing. It was expensive, but it offered more room than the BMW 1 series convertible. It was also more fun to drive than all the others we test drove. The Toyota Solara had bluetooth and was less expensive, but it drove sort of pedestrian. After the lemon VW I had previously owned, Audi was not a consideration. The Saab also had good crash test ratings. I like driving the car so far.
For what you get in convertibles, the price is higher than the BMW 1 series and lower than the 3 series. With the incentives and financing offer, the price was comparable to the 1 series.
61 TuuSaR
// Jul 9, 2008 at 12:03 am
Different reasons for different markets. Dollar is so weak that I dont get how Saab can even sell 9-5 and 9-3 in the USA?
In Europe Saab needs 1.4 and 1.6 liter engines and plug-in hybrid. Fuel economy is THE trend now, not sport, not safety.
62 gunner712004
// Jul 9, 2008 at 6:30 am
from a uk perspective..
the figures you are counting are from registrations not sales. loads of cars are registered sitting on dealer forecourts. this year dealers have said enough and are not pre-reging cars. in fact the UK is about to lose many dealers because of this.
sales to the customer are about the same
registrations are well down
63 RAY
// Jul 9, 2008 at 7:25 am
I love the Saab legacy, but cannot stand the contemporary. Hate to say it, but Toyota Corrollas and Camrys have better styling than the 9-3 sedans.
I have cash in hand, but what am I holding out for ?
3 Dr Coupe, 3 Dr Coupe, 3 Dr Couple.
Why do I have to buy a convertible to have a Saab Coupe ? Convertibles are not always practical.
Please bring back the lines of the 900S Coupe design. That will interest the Saab fans of old and will win a new generation of Saab buyers.
Cheers !
64 unclefester
// Jul 9, 2008 at 7:55 am
Does anyone have an idea of what GM’s profit margin is on Saabs? Let’s take the 9-3 as an example - a loaded 2009 9-3 Aero XWD will probably top out in the low-mid $40s before any sort of incentives. In this price range, these cars butt-up against the German and Japanese competition and in some cases cost more than that. This will dissuade most ‘rational’ customers from buying a 9-3.
At this point in time, GM/Saab needs to realize that the base of loyal Saab buyers is shrinking and that they need to compete much more on a value/feature basis than an emotional one. To do this, especially in this economy, Saab needs to significantly reduce the price of their cars to lure additional prospective buyers.
I would propose that they reduce the price of their cars by 15%-20% and stop relying on crazy incentives to move cars are various points of the year.
This ‘everyday lower pricing’ could not only pull in additional, value-minded customers in this segment, but it could also serve to stabilize the future resale values of the cars (which is another thing that plagues our Saabs).
A 2008 loaded Turbo X costs ~$44000 USD. Just imagine if these cars were priced 15% lower at $37500 - I suspect that these cars would have been sold out a long time ago. The purchase by GM should have served to significantly improve Saab’s internal cost structure to enable these price reductions.
I wholeheartedly agree with previous posters about the Acura TSX (I purchased one the week they were launched in the US in 2003) - great car that delivers awesome value. The redesigned 2009 TSX will come in at just under $33k loaded. The 2.0Ts need to be at that price level to be competitive in that market - a comparably-equipped 2008 2.0T costs ~$37,500. That is a significant price difference to overcome.
The 9-3 cars are good cars for the money. They would be great cars at a lower price.
65 Idbandguy
// Jul 9, 2008 at 8:04 am
Opinion: In the US, folks have lost contact with the brand. Next to no advertising has left saab in the - at best - “after thought” pile.
We see other GM brands with high profile ads…
GM needs to commit to saab or spin it off.
Seems like they are are fitting a round peg into a square hole with cadillac in europe. Why not sell saabs there?
As for the US, I go back to lack of advertising push. In sight. In mind.
Out of sight. Well, we all know the rest.
I receive an e-newsletter from McCann Cady/Saab/Hummer in Fife, WA. They only show photos of and have articles about Cadillac. This dealer doesn’t even seem to be pushing saab.
My take? Saab USA needs to make the brand visible.
66 1985 Gripen
// Jul 9, 2008 at 8:11 am
ldbandguy: Money. It takes money to buy advertising. GM is not allotting Saab USA enough money to make big media buys. So Saab USA is trying to efficiently spend advertising money through targeted advertising.
However, that being said with all the “I haven’t seen a Saab ad in forever” comments here I guess they’re not doing the best job targeting their demographic. You’d think they’d be advertising in places that Saab buyers frequent. Like… TrollhattanSaab?
67 Stuart Aitken
// Jul 9, 2008 at 10:24 pm
Why is such a mystery as to why saab sales are failing.As i said in here before saab quality was poor, dealerships far too expensive and the attitude of saab customer relations simply shocking.Before i go any further let me assure sure you i am not a saab knocker but a long time saab owner.I said in a previous post that things would only get worse for saab and that`s excactly what is happening.Lets take the 9-3, does it really surprise you that 9-3 sales are poor,you say that the latest 9-3ss is a good car,that may be true,but you cannot say that of early 9-3 ss so why would you expect anyone to renew to a new 9-3ss.Quality was shocking for a car in that price bracket,cheap interiors cheap components overpriced servicing costs and customer relations department that had no interest their customers.You can talk about better advertising, branding excerisies etc etc but if your excisting customers are unhappy they will not come back i know a few people who will never buy saab again.Lets just hope the new models are better, along with sensible servicing costs and good customer relations and just maybe saab can start building a loyal customer base again…
68 riku1100s
// Jul 10, 2008 at 4:24 pm
There already are soo many reasons/excuses for Saab selling poorly, so here’s something to fix it ??
69 yaoo
// Aug 22, 2008 at 5:22 pm
the price is the main reason i think, in china, 93 2.0T are Selling 40000ERO. why the price is so far from the normel price.