Comments

• SaabLance said:
  

  James,I too have a long (14 years)background in Saab sales and know just how important a strong, market competitive lease program is to Saabs success in retaining market share vs competitive Euro brands.As of today 08/01/08 GMAC has raised the base lease rate on the 9-3 by Two full basis points putting it at a low of 6.95% on a 9-3 SS and an astonomical 9.1% on the 9-3 convertible. A 9-3 base 2.0T Auto.Trans,Sunroof,Cold Pkg.will now be leasing at over $500.00 per month even with Lease/owner loyalty and $1,000 cap.reduction and inception fees. I’m sorry to say it but our days are numbered!

  -August 2nd, 2008 at 12:59 am
• NJ_Nick said:
  

  Great write-up. The technology (2) is of particular interest and I agree.

  I wish that GM would let SAAB define itself as a progressive premium brand. SAAB could be the first premium brand to only offer BioPowerFlexfuel/plug-in/hybrids/diesel engines in its line-up. Give up the horsepower race and produce cars that are environmentally friendly but still fun to drive. Move your mind, indeed.

  -August 2nd, 2008 at 1:34 am
• Olaf said:
  

  For example Technology:

  some months ago a friend told me about the fact that the new RENAULT Mégane has 4-Wheel steering. We here all know that the 9-3 carves on ReAxs System and we love that handling.
  The Problem is the marketing: if nobody knows the advantages, others will come and claim the features for them. Another Example is E85. Here in Germany now OVLOV makes big advertising for their FuelFlex System. Hey Guys, we at Saab have it already for some time, so please set free some more marketing budget to show what we have. It’s a shame.

  It’s not enough that people get off my 9-3 SC with ReAxs and tell me smiling that this was a perfect ride before they walk over to their BMW’s or Audis that they purchased without knowing SAAB-Technology.
  Now they talk about the RENAULT and their 4-Wheel steering…:(

  SHOW WHAT YOU HAVE SAAB!

  -August 2nd, 2008 at 1:48 am
• Sven van Dijkman said:
  

  Comments and my thoughts on your DYNAMIC = leadership views, in your order:

  1 Design
  Yes, Saab should be distinctive, daringly different. The trend of the latest concepts is pointing in the right direction. Now we need to see that design trend executed into real products. And it should not only be the looks, but the whole works: the feel, the touch, the smell, the driver-car interaction, the versatile functionality (”the hatch” some call it).

  The cool design Apple-products have through their diabolically good functionality and the unconventional marketing that goes with it. Maybe a bit to far of the GM map to that happen, though. Could a bunch TS people figure out the marketing side…?

  2. Technology
  Saab does, within the current GM world, not have technology privileges. Neither XWD, nor turbo, nor Biopower. It is far too costly not to share this within the group even if Saab technicians have developed it from the start, it is now GM property. Saab will not even be the brand to carry new technologies first (eg. Chevrolet Volt). Sometimes they will (eg. Biopower). Saab is next to Cadillac a premium brand, not to be confused with a spearhead brand. Premium means higher priced, lower volumes, higher margin, and, especially, perceived (!) higher value.

  Perception is key. In the transparant world a tech advantage has a very short lifetime, so its value is also limited. Again marketing and pr is most important. Here the slightly negative brand perception of the press is most important. Again I am not sure if a GM brand can be marketed in such way as Saab would need. There is hardly any or no tech advantage to be talked about.

  Thus it has to go back to Saab’s original values: Scandinavian - Safety - Saabish. Scandinavian means that the cold weather aspects of the car always should outperform any “non-Scandinavian” brand, take for example heated seats, defrost capacity, correct cabin temperature at low outdoor temperature, etc, as well as XWD driving on slippery roads - for whatever reason slippery - and . There lies the tech challenge.

  On Safety the cars should perform better than excellent in order to survive, but it hard to see that that is incorporated in new Saab’s. But in my opinion a Saab should no matter the opposition free its drivers from getting into accidents, and secondly always let them survive, with as little injury as possible. Look and drive like a beauty, but act like a F-1 car when the shit hits the fan! Owner / Passenger safety should prevail over fuel consumption in a way of perception. It should be more important to make the car safer than regulations require and then just meet fuel/exhaust emission rates. than vice versa. Here is a another challenge!

  Saabish means Saab mo jo, could be much. An example: the canopy on the Aero-X. Make cars like that (even just a small series of sports cars) and you’re a winner!

  3. Functionality
  Also see Design. Function dictates form, design is the outcome of the functionality you want. You might option that the current functional (and legal) requests make it difficult (as always) for the designers, but the timeless design and functionality of old day Saab’s proves that the current design fashion that all car makers fall into, does create a gap where a unique Saab design would take it own place without dismissing the four sets of golf clubs.

  I am looking forward to your comments on marketing. I think it goes hand in hand with the other aspects of design and technology.

  -August 2nd, 2008 at 1:57 am
• NineTwoX said:
  

  All this talk about how Saab’s days are number has me thinking it’s time to trade in the 9-2X while it’s still worth something.

  -August 2nd, 2008 at 2:14 am
• ctm said:
  

  To me, it’s obvious why Saab is failing in general, and in the U.S. specifically. They have two outdated medium-sized cars that lack every bit of modern design language and up-to-date technology + one dinosaur with a nose-job. The process of trying to rationalize and interpret the situation on the market there is meaningless and a waste of time. Bringing XWD or Diesel or Bluetooth to outdated models does not help a bit. There is no way to breathe life into those cars, no matter how much advertising they do. Those who buy Saab at the moment are not the average Joe. They are mostly either die-hard Saab fanatics or people that are well educated on the market and have money to spare on something different without any worry about the risk. Saab cannot live on that. Not even the old 900 - the perfect icon - was enough to save Saab. Not even back then when competition was far less cutthroat. That is why Saab has to change. And they change with new models and a new direction.

  When Saab have a modern lineup on par with their competitors and that lineup is failing, then it’s worth spending some time wondering what Saab is all about. Until then, this is how it is and nothing can change that. Not an extra 100 bhp, not new rims, not eLSD. Just hope that GM can sit it out for another 18 months.

  -August 2nd, 2008 at 2:19 am
• 1985 Gripen said:
  

  ctm: “just hope that GM can sit it out for another 18 months”. See, that’s what I’m afraid of. For what? In 18 months what if the 9-4X is a huge sales flop because people decide they don’t want a normally-aspirated V6 SUV with fuel prices they way they are (and are projected to be in late 2009)? What if the next-gen 9-5 isn’t spectacular and is simply just another luxury contender in a saturated market? I haven’t seen anything to indicate the 9-5 will be anything really special. Even if GM can hold-out for 18 months to give Saab their legs what if the stupid product decisions of the last decade or so don’t pay-off? Then do they say, “that’s okay, we have the follow-up to our best-selling model coming in just two more years. We’ll just wait for that and hope it’s a sales hit”???

  -August 2nd, 2008 at 2:39 am
• sam said:
  

  SaabLance, you’re scaring me. You are describing what I am hoping to get when my lease runs out in November. I’m paying $365/month for my 2004 9/3 lease. If it goes up to $500/month, then I’ll be looking elsewhere for wheels.

  -August 2nd, 2008 at 2:50 am
• Kroum said:
  

  Fully agree with ctm (once again).

  The lease rates were absurd in the U.S., and I can seriously see other brands’ leasing arms following GMAC and Chrysler. People were buying expensive cars on subsidised leases with 3 years free maintenance and $0 down, at 0% leasing rate - cars they could not otherwise afford if they had to obtain financing through their bank.

  The same thing happened on the housing market, and the end result is known to everyone here I assume. The party can’t go on forever, and eventually you wake up with a hangover.

  I’m sorry Sam, but a $365 lease for a premium European-made car with free maintenance and full warranty in 2009 is something that cannot happen. The USD has lost 50% of its value since January 2004, energy prices have trippled, and the global economy is in the midst of a credit crunch.

  GM and Chrysler simply had to cut their programs first because their cash situation does not allow them to wait any longer. Certain other manufacturers may have the cash to ride it out for some more time, but at some point consumers will have to face the economic realities of today.

  -August 2nd, 2008 at 3:11 am
• Andy said:
  

  Success in any business, ultimately defined by financial measures, depends on developing a great relationship with customers. The following statement from “The Constant Customer”, by McEwen and Fleming describes it very well: “…satisfying customers without creating an emotional connection with them has no real value. None at all.” This emotional connection leads to loyalty, advocacy, or even a feeling of psychological ownership. So how do you do this? You certainly need a quality car that delivers good value. For Saab that probably means world class safety, practicality, reliability and good performance. It also means being treated as if you are special by both the dealer and the Company. If you are going to go head to head with the premium German and Japanese companies you can’t settle for less.

  My new 9-3 Aero AWD is my fourth Saab and the eighth counting my wife and mother-in-law. The most influencial reason is the great dealership that delivers fine service, getting things right the first time (mostly) and going out of their way to make us feel better the few times they didn’t deliver. My few interactions with Saab were mixed, but mostly positive. As long as they produce competitive cars it has been hard to get me to switch. I’ve come close to buying BMWs a few times, but I generally don’t want to order from the factory and it is virtually impossible to get one equipped the way I want at either BMW dealer in town. More importantly I won’t buy from someone who tries to sell me more than I want, or acts like I should view it as a privilege to buy a BMW and pay essentially list price with a low trade-in allowance besides. There is certainly room for improvement in recent Saab car design, but as long as I feel good about the rest of the equation, I’ll probably keep buying. Maybe Saab commercials should pay more attention to the loyal users and less to hype.

  -August 2nd, 2008 at 3:31 am
• 1985 Gripen said:
  

  Kroum: I guess Sam has a choice to make. If Audi or BMW or Ovlov or whomever can offer him a better lease deal than Saab in November he’ll likely have to take it. He’s Saab’s customer to lose.

  I would imagine it’d be in Saab’s best interest to keep the leasing price low on their cars to compete and at least move product. Look at how poorly Saabs have been selling even with the industry’s deepest discounts. We have to face it, in the broader U.S. marketplace Saabs are not desirable automobiles and the company has to adjust pricing according to demand.

  -August 2nd, 2008 at 5:08 am
• 1985 Gripen said:
  

  Another thought: Sam apparently has his car on a FIVE-YEAR lease and now that the lease is up if he liked his Saab enough he has his choice of the exact same two models (unless he wants an SUV) he had five years ago. Sure, they’ve undergone a face lift, but they’re the same cars. Does he want to lease an updated version for the next five years that he just spent the last five in? I mean, you’d have to really like a car to spend a decade in it.

  -August 2nd, 2008 at 5:14 am
• NineTwoX said:
  

  According to an article on Autoblog, BMW will be also raising their lease rates.

  -August 2nd, 2008 at 5:20 am
• Troll96 said:
  

  This reminds me of Saturn. For years, they played “wait until next year.” Then in 2007 they released a bunch of really nice cars, including the Aura, the 2007 North American Car of the Year. Sales grew some but not enough to make up for years of corporate neglect and a product-starved lineup. The long-awaited Astra debuted this year but has been a sales flop despite its history as a high-volume seller in Europe. So even if Saab released all the dream cars that we have been hankering for, it still might not be enough for a small brand trying to shed a high-maintenance/rapid depreciation image just when it’s warranty is decreasing and its purchase/leasing costs are increasing.

  -August 2nd, 2008 at 5:29 am
• Kroum said:
  

  Grip, my point was exactly what NineTwoX is now saying - everyone will be forced to review their lease rates and terms sooner or later. It’s not just how desirable a given product is, it’s also the overall economic conditions. BMW, M-B and the rest are all in the business of making money, too, and they all have shareholders to report to, just like GM. Their cost of borrowing has increased, too, and the residuals on their cars are not much better than Saab’s, as evidenced in this writeup.

  Also, Sam has the car on a 4 year lease - Nov. 2008 - 2004 = 4, as per my calculations. A $365 payment is a good payment. Imagine for a moment there was no leasing available anywhere at any rate - what would you be able to finance for that money, at a high interest rate? A Toyota or a Chevy, most likely.

  -August 2nd, 2008 at 6:21 am
• 1985 Gripen said:
  

  Kroum: I was thinking that he has a 2004 model year car he’s trading-in for a 2009 model year car. That’s five years. Sorry if I mis-calculated.

  Your other points are well-taken. The point I’m making is that Saab can’t just price the cars to what they need to make money. They also have to consider what their competition is selling for and how desirable they are. Truth be told Saab isn’t even on most peoples’ radar, but everyone’s heard of Audi and BMW. In order for people to even get to a Saab dealer’s lot, something has to draw them in. Since the cars themselves are not a huge draw right now, it’s going to have to be price.

  Saabs are currently the most discounted cars in the INDUSTRY in the U.S. They’re even more discounted than HUMMER. Think about how many different makes of cars there are on sale in the U.S. Saab is DEAD LAST. They discount their cars over $8K on average just to move metal. If they increase the lease amounts on Saabs I predict they’re going to move even less metal than they already do.

  -August 2nd, 2008 at 6:47 am
• Kroum said:
  

  Grip, I completely agree about the need to be competitive. But discounting cars up to $8K per unit just to move metal is disasterous in the long run. It would not matter how many people bought Saabs, heck, it would not matter even if every other American bought a Saab, if the company cannot make money on the cars it sells. You keep losing money just to move metal and soon there’s gonna be no metal to move.

  As an interesting side note, Ryan had dug out a bunch of articles from 1989-1990 regarding the purchase of Saab by General Motors for a research article on his site. They all referred to “the struggling Swedish automaker” bought by the “cash-strapped American behemoth”. Some things never change, and the truth is Saab has probably been losing money for the better half of its 60 years in existance. Come to think of it, it’s a real miracle the brand is still around.

  -August 2nd, 2008 at 7:03 am
• Paul Guinnessy said:
  

  My lease is up next year and I haven’t decided whether to risk buying the car out right (as I like it) or replace it with something cheaper. Currently the private sale price on a 06 9-3 sportcombi is around 15K. That’s nearly the same price I’ll get when if I buy it 14 months from now. Love the car, but I’ve noticed the front end started creaking for no apparently reason recently. That’s not a good sign for a long term purchase (particularly as I leased this car instead of buying it as I was worried about the reliability, something its been good at until this creaks started).

  -August 2nd, 2008 at 7:11 am
• saab9x said:
  

  you hit a lot of nails on the head.

  “Cars are like our clothes, our hair, our watches, etc. They make a statement. When customers spend upwards of $30,000 they want to look good.”

  “Safety. Saab must maintain their record as one of the safest cars on the road.”: this morning, i was just looking at “bmw magazine” (2/2008–…albeit untimely and left at the gym by someone, likely a bmw owner, perhaps preoccupied by the mystique of using a turn signal…) and noticed lots of articles or testimonials about bimmer safety (and how a crash in any other brand would have brought about fatalities). well, safety has always been saab’s domain. if others want to imitate, so be it, but saab needs to tout that feature (”born from jets” muted it), not only in terms of responsibility, but also in terms of coolness, and, as in bmw’s case, sophistication.

  “Less flimsy cupholders. Make them strong and functional not only beautiful. Think practical.”: amen! i’m afraid to use my cupholders–…rather, i’m afraid to let the women i’m dating use them. (”no” to everyone else.)

  “Saab has so much potential and it is time to strike and MAKE IT HAPPEN. We have watched Saab make cars to meet existing product benchmarks and then keep the products too long. It is time to set the mark and start thinking of the new benchmark 7 years into the future.”: true, that!

  good post.

  -August 2nd, 2008 at 7:13 am
• NineTwoX said:
  

  Saab needs to be the brand that all these people go to who are getting out of their leases. You know those Lexus, BMW, & MB leasers who want the image but not the price.

  IMO, a lot of those owners who cannot afford another BMW will probably end up with a Toyota or Honda.

  -August 2nd, 2008 at 9:54 am
• PT said:
  

  For what its worth, BMW Australia just dropped their finance rate by 2 % points to 8.64%. That said, wer’re talking about a market where a 335 sedan is >$100k on road so I think they’ve got a little more wiggle room than the US. Not to mention that there are nothing like the free service packages etc that you guys are describing. Toyota have just announced fixed price servicing ($250) for three years on new cars.

  $0 down, 0% finance and Free Servicing sounds like a sub-prime meltdown waiting to happen to me. If you haven’t got the cash for a car ( or can’t afford market rates to borrow) and can’t afford to service it, you really shouldn’t be driving it.

  -August 2nd, 2008 at 9:03 pm
• Markac said:
  

  Saab9x: “Saab has so much potential”. It always has, but it just needs a new landland.

  It truly needs someone who can recongnize what it is about, understand it’s unique qualities and bring to the market, prouducts that embody those qualities. After 18 years GM has failed to that and most likely will always fail mainly because it just basically has never understoood what Saab is about.

  In some ways Saab is like a tremendously gifted orphaned child that got adopted by parents that diidn’t understand they had adopted such child. The child was brilliant but needed special handling and special schools to bring out it’s unique potential but the parents have never been able to totaly recognize this and couldn’t afford the special educational requirements that the child needs.

  That child still has so much to offer. It just needs to find the right parents.

  -August 2nd, 2008 at 9:08 pm
• Erik said:
  

  Some things to ponder…..why was the 9-3 removed from the gm employee program….to save money? If that were the case, gm could have reduced the dealer payout and still have retailed units. On top of that, gm is going to pay the dealers for each unit they sold in 07……not “saving” money. The warranty reduction…..to save money, I don’t think so. Maybe these moves are to divorce gm from future obligations and open the door to sell Saab…..let’s all pray together….

  -August 2nd, 2008 at 9:15 pm
• Ned said:
  

  I agree wholeheartedly with Andy’s post about good dealer service. I have always received outstanding, courteous service from my dealer (I believe the one where SaabLance works), and from one in the St. Louis area when I needed service out there. This has created a connection for me, without which I would be more likely to move to another brand. A friend of mine who bought his two 9-5’s from my dealer expressly told the service manager she was the reason he came back for a second Saab.

  I’ve determined Saab dealers recognize the importance of service, and make a real effort, because they know it’s one way they can retain valuable customers.

  But it can only stem the tide unless or until the brand has competitive product. Anybody really think the 9-3 will measure up to the new Audi A4, which will also offer an efficient four-cylinder turbo? Anybody compare the current 9-3 2.0T to the new Acura TSX? For refinement, it’s not even close, but when the Aero-spec 2.0T arrives the Saab will at least be close to par dynamically.

  -August 3rd, 2008 at 12:05 am
• Mat said:
  

  I think you forgot one of main things what regular costumers needs:

  1. After sale support and stop of ignorance

  I have writen SAAB GM official post where they claim that is waiting 14 days on exhaust part, being 12% per year without car because is in official service repair shop, they dont feel hard if they repear your gearbox 4 times in 3 years. . - Answer was that it is SAAB standard and according to internal regulations and asked me why I declined discount for new car because they were afraid to repair current one.. I have also a apologize of superiors because of this letter, but it is normal that costumers who wants to know what to do with damaged 3.0tid engine because of factory quality problems waits on official answer more than 4 months. 3.0 on end ended on car dump. Last year my friend bought company car from SAAB official dealer and repair shop. In 6 month he had his car 4 years on repair and they offered him a special discount on KIA car.
  Situation was so bad in past years that we (costumers) founded own association and started to deliver spare parts by our own. On average we needed 5 to 7 days, official dealer up to 21 days. In half year of strugle with GM officals situations improved. Dealer was changed and new one seems to be on good way.

  Unfortuntaly old dealer still has SAAB oficial repair shop licence. I cant understand that.

  I still own 4 SAABs (c900 1980, 9-3 I.gen 2000, 9-5 1998 and 9-5 2006 new model). I am just sad that unexperienced aftersales managers are destroying this brand. I am very positive toward brand and I personaly thing that most of owners dont care what GM marketing philosophy want to achieve - we buy SAAB’s because of our own individual beliefs and emotions. We all do our profesions on our job, and I think it is basic what we demand from our car manufacturer that also he runs his job profesionaly.

  actualy what brand perhaps want to achive is someting that perhaps evend doesnt need to.. we (costumers) are so indvidual that SAAB can be just SAFE premuim brand because rest of character give costumers by them own and personal attitude and behaviour.

  Nothing what you posted wont stop costumers fleeding from brand if you dont assure propper aftersales support.

  Free to contact me any time if you are internal person devoted to improve situation. I think that documentation I gathered during last year gives plenty of work for COO (chief operation officer) office and internal process control . My case went from state level to Eastern europe officess and I simply think that it was resolving to slow and in wrong directions.

  More or less I gave up to improve GM and SAAB processes and I enyoy in my own SAAB world.

  -August 3rd, 2008 at 6:07 am
• francis said:
  

  hello, here my opinions about the Saab problems from the view of Luxembourg/Europe
  1. the image of Saab here was very good, safety, technology etc., but since several years, this image is loosing, because there are no new models and no extension to smaller cars or coupés etc.
  2. the service of Saab Luxembmourg is very bad, due to the fact that Luxembourg depends of the Belgian Importer whose service is the most bad I saw after 35 years driving cars
  3. If Saab needs up to 5 years to bring new models, the sales figures will decrease to an exotic brand

  my car : convertible 9-3 MY 04/2007 1,8 t automatic, white
  and I loke it very much !!! nice caar !

  francis

  -August 3rd, 2008 at 6:01 pm
• Sensonic said:
  

  I think that keeping the old models (=selling the old models) for so long is derived from Saab 96 and Saab OG900 since they were so long in Saab’s car model line-up.

  GM thinks that even though other manufacturers (especially Japanese) are introducing their new models every second year or so, Saab could still stick to its guns and keep selling the old models for 7-11 years. I guess GM’s loss of money has also something to do with it. It’s better to spend some money for those high volume cars (such as Opel here in Europe) than invest to Saab which is only selling ~150000 cars / year. It’s also very silly that some money has been invested on Cadillac BLS but the good thing is that at the same the engineers at Saab have been able to develop 9-3 and introduce the facelifted model of the car.

  Through 60’s-70’s-80’s it was possible to survive by selling the same (well, some faceliftings here and there) model but I think that now in 21st century it’s almost impossible. It seems that Saab and Volvo are the only car brands which are able to do it somehow whereas other premium manufacturers change their model more often. Well, that’s only possible by investing more money to R&D but in the situation where GM is right now, I’m afraid that’s not gonna happen.

  Nevertheless, I got a good offer from my favourite Saab salesman and I think I’m gonna order ym. 2009 9-3 Sport Combi 1.8t (now when it’s equipped with six gear manual transmission) in the near future

  -August 4th, 2008 at 1:53 pm

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