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Posting will be light this weekend as I head off to the north island for a family engagement. I’m taking my laptop, though, so things will still be happening.
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An update on the leasing thing….
GMAC are going to post a 2.5 billion dollar loss this quarter. So I guess that’s why leases are off the table for a lot of brands.
As for GM, they’re going to take leases off the table for a number of models (mostly SUV’s) and adjust their offerings for other vehicles.
From Automotive News (sub):
….while we obviously can’t make guarantees, we are in the market today with competitive programs to make GMAC leasing more affordable and plan on continuing to offer this financing alternative as part of our August incentive play on ‘08 and ‘09 models (with some adjustments and exceptions).”
GM plans to continue offering a “balanced menu of options” for buyers including cash incentives, lease deals and attractive financing, one dealer briefed on the plan told Reuters.
I have no idea what this will mean for Saab in particular, but I have a feeling it’s not going to be good news.
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As a cross-play, GM plans to hike incentives on the vehicles most effected by the lease situation – SUVs, crossovers and some poorer selling vehicles.
Some SUV’s will see up to $4,000 on the hood, though I haven’t seen anything about Saab in the article.
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It’s the 1st August here in Australia. I think GM will breathe a sigh of relief that they get a weekend off before having to report what will be another slaughterhouse month in sales terms. This time last year Saab USA sold 3,247 vehicles. I wouldn’t be surprised if the didn’t get over 2,000 in July this year (and that’ll be the second successive month).
Again, Automotive News:
Automakers are expected to report on Friday that U.S. auto sales fell for a ninth consecutive month in July, as the industry hits its worst showing in 15 years.
After recording reasonable worldwide sales in 2007 of around 125,000 units, Jan-Ake Jonsson did an interview with a German publication earlier this week where he said they hope to reach 110,000 this year, and the same next year. Consequently, I can’t see July being a good month anywhere in the world for Saab.
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Back in May, Saab spent a bucketload of cash promoting the Turbo X in Automobile Magazine.
Here in July, Automobile Magazine has at least proven it’s journalistic independance by heaping a bucketload of crap all over the Turbo X’s head. Not satisfied with getting one reviewer’s opinion about the car, they writeup everyone from a senior editor to a copy editor. I guess the janitor was busy.
When you scan the specifications on the Saab Turbo X SportCombi (despite the 9-3 badge on the back, Saab insists you call it just the Turbo X), you can’t help but get excited…..
….Sure, the traction of Saab’s all-wheel-drive system is impressive but the overall driving experience of the Turbo X does not live up to the impressive specifications list, especially for close to $45,000.
That’s typical of what you’ll get at the link.
Of course, all the people that have actually paid money for the car write to me and tell me they absolutely love it. Having ridden one and driven a pre-production version, I can see why.
But it doesn’t mean that Saab couldn’t benefit from some serious investment. If they’re talking of the 9-3 as feeling old now, imagine what they’re going to be saying about Saab’s volume seller in a few years from now.
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John McElroy makes sense at Autoblog:
Every day Chrysler LLC builds Euro-spec versions of the Chrysler 300 at its assembly plant in Canada, bolts a V6 diesel engine into most of them, and ships them off to Europe. That diesel 300 gets better fuel economy, over 30 mpg, than all the other vehicles in Chrysler’s U.S. showrooms. But it’s against the law for Chrysler to sell that car in America.
Right now Ford and General Motors are trying to figure out how to bring many of their fuel-efficient European models to the U.S. and manufacture them here. They’d love to do it immediately, but it will take them several years to modify, test and validate those designs before they can meet U.S. regulations. Until they do, it’s illegal to sell those cars in America.
Anybody else out there agree with me that this is crazy? Let’s let automakers bring their fuel efficient European cars over here immediately. As long as a car meets the Euro 5 emission regulations and the latest European NCAP safety standards, we ought to let them build those vehicles in the U.S. with no other modifications.
Anyone who wants a TTiD Saab 9-3 in the US should lend a “hear hear!” in comments over there. It just doesn’t make sense.
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In another example of Saab Germany starting to get wheels in motion, Saab are getting all fashioned up in Berlin. The story’s not too interesting, but it’s a good photo:
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And while we’re talking fashion, that’s a lotta shoes…..
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20 responses so far ↓
1 Markac
// Aug 1, 2008 at 11:28 am
Unfortunately the 9-3 doesn’t seem to be aging quite as well as the 9-5 did, and things will only get worse. Just imagine being a dealer trying to sell the 9-3 in late 2010 or early 2011. Sales will probably be on par with current 9-5 in 2008 and that’s scary. Yes the 9-3SC crossover version will help a bit, but it’ll still be just a new version of a comparatively old car. That version only has a short life expectancy anyway.
Dealers will have to rely on the new 9-5 for quite a long time, so let’s hope it’s pretty fantastic.
The 9-4x might add a few sales, but now the bubbles pretty much burst for SUVs, it won’t be add a lot.
2 2-don
// Aug 1, 2008 at 12:04 pm
Here, here!
3 2-don
// Aug 1, 2008 at 12:19 pm
You know, I was waiting for a review like that. I knew that there was too much positive and that someone was going to be negative just because. I have not had the chance to test drive one so I can’t call them liars but I have been expecting this type of a review. Anyone else?
4 Alex
// Aug 1, 2008 at 12:29 pm
I keep hoping and hoping that the big secret at Saab is that the next-gen 9-3 is much closer to production than we have been led to think it is. The talk of the 9-X Biohybrid being a preview of the next-gen 9-3 supports that, the fact that it’s taken to long for the 9-3X to hit the market, not so much.
Either way, articles like this just drive home how much the brand needs new product. I think the Turbo X is a decent enough car, and that to a longtime Saab enthusiast the warm associations with the Saab brand make paying ~$45k for what really is a $35k car make a lot more sense than it probably should. The problem for Saab is that the other 99% of the new car market doesn’t see things that way, and sales numbers are showing that Saab would really do well to attract at least a few of them.
So while I don’t like to see the Turbo X get slammed in reviews from major automotive journalists, I can’t say I’m all that surprised to see them either. Saab either needed to tone down the hype (and pricetag), or deliver the true “STI with luxury” that everyone else seems to have been hoping the Turbo X would be. Instead you have a bunch of disappointed journalists, many of whom actually LIKE Saabs, scratching their heads and asking why Saab can’t get the car it deserves. (and here’s a sorry to everyone else: as much as I like to hear about good reviews from the little guys, what Saab really needs right now are good reviews from the likes of CAR, Top Gear, Automobile, Motor Trend, and Car and Driver. A positive cover story from one of those guys is worth 1000 good reviews from the likes of Motorweek or the Boston Herald)
5 David P
// Aug 1, 2008 at 12:53 pm
I read the Automobile reviews and I was left scratching my head about their comments. I have had my Turbo X for two months and have really enjoyed it. The comment about the exhaust sound was way off target, it sounds great windows up or down. The shifter is not rubbery, although the comment about second gear is right, it is very tall for some reason. The steering could be a little more precise, but it is not bad and certainly on par with an A4 or G35. I felt like they were really being negative on a very good package. I do have the sedan and haven’t driven a sportcombi so some difference may be accountable to that. I bought the Turbo X instead of an S4 because of my prior experience with Saab and that god-awful grille on the Audi.
I would like to see a comparison done by an authoritative magazine like Car & Driver or Motor Trend. David E., Automobile Magazine misses you!
6 Swade
// Aug 1, 2008 at 1:05 pm
^^^ and that’s what I hear from just about everyone who got one.
Thanks David.
7 1985 Gripen
// Aug 1, 2008 at 1:53 pm
Maybe GMAC can borrow some cash from ExxonMobil, who raked-in a record USD11.7B this quarter.
8 Cerulean
// Aug 1, 2008 at 7:41 pm
Work this one out. In the UK it is possible to buy a Cadillac BLS Wagon TTiD Auto for £23,895. This includes sat nav, Bluetooth, dual electric seats, full leather, rain sensing wipers etc. To buy the equivalently specified Saab 9-3 Vector Sport you would have to find £32,315, a difference of £8,420!
Now I know not everyone wants a Cadillac over here, but bearing in mind these both roll off the same production line how can Saab justify the difference, especially in todays tough market conditions.
9 Steven
// Aug 1, 2008 at 10:53 pm
Can anyone confirm that the 1.9TTiD is no longer only Euro4? Even if it is now Euro5, that this still a LONG way from the 50 state emissions requirements for oil burners in the US.
10 Adam
// Aug 1, 2008 at 10:57 pm
What this highlights to me is that Saab continues to be 5 years late with every new product and development, going back 20 years. If things don’t change quick they’re going to be 5 years late to their funeral too. So disappointing.
11 SaabLance
// Aug 1, 2008 at 11:22 pm
Report from the sales frontlines:Dealer in major Mid-Atlantic Metropolitan market….current 9-3 Turbo-X inventory @13 UNITS!!!. Five Auto.Trans,Four 6 speed Manual Trans. Sedans. Two A.T.,Two 6 speed Manual Trans. Sport Combis. Turbo-X Units delivered to date: ZERO/ZIP/ZILCH/0!!!!! Sales for this dealership regularly in the 250-300 unit range over last 5 years. Draw your own conclusions.
12 Ned
// Aug 1, 2008 at 11:45 pm
Yes, Automobile was a bit harsh on the Turbo X. Car and Driver reviews it in a “short take” in the September ‘08 issue, and are slightly more positive. They especially liked the “nicely balanced handling,” saying “the Turbo X has a taught feel on the road, and if you press it hard it rotates nicely when you ease the throttle near the cornering limit.” But they didn’t like the “pogo-like hop on certain freeways and the occasional harshness over severe bumps.” Nor were they impressed with the acceleration. They seem to question the value proposition as well.
I’ve driven the Turbo X on some challenging back roads, and I also liked the handling. The steering seemed fine to me. However, I know what the Automobile writer means about the “soggy” feel — it feels heavy compared to a straight FWD Aero, and lacks that sport compact tossability. Its limits are higher, but the feel is different. I had no complaints at all about the shifter, and I didn’t notice the overly tall second gear, but I’m not surprised because my 9-5 Aero has this. But my biggest problem was the boomy exhaust noted by Automobile. At around 2,200 rpm, the whole car seemed to resonate with a bass frequency that drowned out everything else. I wouldn’t want to live with that on a daily basis.
So in the end I’m with Alex on this. While I really like the Turbo X, I’m not surprised at some negativity, especially considering its price. The 9-3’s aging platform is difficult to mask.
13 zippy
// Aug 2, 2008 at 12:00 am
Ouch thats gotta hurt. I think GM left Saab on the back burner for a little too long and its beginning to show. The new 9-5 should have built 4-5 years back when they had some kind of premium platform that was to be shared with Alfa Romeo. The renderings of the ‘10 9-5 are, imho, very promising but Saab really do need to get that new 9-3 out asap.
Regarding my personal dealings with Saab, I have some very good news to share with you all and I will be sending Swade the details when the deal is done.
14 swade
// Aug 2, 2008 at 12:07 am
Sounds encouraging, Zippy. Bought a 9-5, then?
15 sam
// Aug 2, 2008 at 2:33 am
Thanks for keeping up on the leasing issue with GM, Swade, as the availability of a reasonably-priced lease deal will determine whether my next car is a Saab, or something else. I appreciate all the work you put into this site.
As for sales figures, you need to put it all in context. All the manufacturers are hurting at the moment. Just this morning I read the tales of woe from Nissan and BMW, as well as the big loss from GM. Last week it was bad news from Toyota.
16 seth
// Aug 2, 2008 at 5:01 am
I would love a TTiD 9-3. I would run out and buy one tomorrow, if they were availible in the US.
17 1985 Gripen
// Aug 2, 2008 at 5:26 am
Steven, you are correct in that Euro 5 is a long way off from Tier 2 Bin 5 requirements in many of the most-populous U.S. states.
In Europe they pay much more attention to carbon dioxide emissions whereas in the U.S. it’s biased toward limiting oxides of nitrogen (NOx) emissions. Euro 5 NOx emissions are higher than the U.S. requires.
However, the German manufacturers are getting around this by making their vehicles Tier 2 Bin 5-compliant by installing NOx catalysts (as in the case of the sold-out VW Jetta TDI and the Mercedes-Benz E320 BlueTEC) and/or urea injection (as in the case of the Mercedes SUVs on their way for sale in North America).
I would think with The General’s vast resources they could piece together a team of engineers to add a NOx catalyst and/or urea-injection system to the exhaust of the TTiD (and other GM diesels available in Europe). But then again, they couldn’t even provide their own diesel engine for the TTiD (it’s a FIAT engine) or the Cadillac CTS (it’s a VM Motori)…
18 sam
// Aug 2, 2008 at 8:20 am
As long as diesel is 50 cents a gallon more than premium fuel, as it is currently, I don’t see diesels becoming a popular choice for autos in the USA. The price premium over gasoline and higher cost of the motor pretty much offsets the increased efficiency you get from diesel, IMHO. Of course, there is a subset of the automotive public that will buy diesels regardless of the cost advantage, so maybe it is worth catering to them. But it doesn’t make sense to engineer and certify a diesel for the US market unless you can recoup the investment by offering it in a large variety of GM models, not just in Saabs. Sorry, I just don’t see diesels as the savior of GM or Saab.
19 Saaboy
// Aug 3, 2008 at 7:49 am
HEAR HEAR to TTid in the USA
20 Jeff K
// Aug 3, 2008 at 9:41 am
9-5 TTiD Combi. Please.