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It’s March 30th, 2010. Exactly 18 months from today.
Whilst the rest of the world is still recovering from President Palin’s invasion of the Winter Olympics in Vancouver*, LL Bean carparks across America resonate to the sound of twin exhausts as SaabUSA conduct demonstration days there (but only on rainy days) at the behest of their new CEO, a previously underacknowledged blogger.
OK, that’s not a likely scenario. The Canadians will hold the Alaskerican advance at Whistler. But I’ll be 40 years old that day and I’d like to envision something.
——
September 2008 may well be remembered as Black September or something similarly bleak. The credit crunch that blew out to a crisis bigger than the GDP of most countries. The vote that squashed the potential solution. GM might do better if they try and ride a unicorn to the end of a rainbow in order to access some cash.
And September car sales? They’ll probably make August look like a picnic. In August, US Saab sales fell 50% compared to the prior year. In July it was 37% and in June it was 57%. For the whole year so far, Saab sales are down by 33%.
In the last few years, the management at Saab USA have canned two premium elements of Saab’s existence in the US: the European Delivery Program as well as the Aero Academy driving school.
They persist with outdated and boneheaded options packages that deny the consumer a chance to get what they really want at a reasonable price.
The brand’s image is defined more by the lack of advertising than by any messages contained within the meagre number of ads that are actually aired.
Dealerships are closing at a rate that’s unheard of and those that remain will mostly be combined Cadillac-Saab showrooms that’ll bring little marketing benefit to either brand.
For 2009, they’re releasing a 2.0T XWD model without the e-LSD option that would make it truly remarkable and in these lease-averse times, they’re pricing their cars well and truly out of the reach of their natural market, happy to appear desperate when Edmunds once again reports (in any given month) that Saab spent more on incentives than any other car maker.
And for some strange reason I can live with all this. I’ll give you two reasons:
1) My confidence that the management there will have moved on to other things by March 30, 2010**, and
2) As always, it’s the product, stupid!
One can dream……
——
It’s March 30th, 2010.
I’m recently home after travelling to Vancouver to watch the Winter Olympics, which went off without a hitch and were thoroughly entertaining. Long live elite sport! The trials of driving around Vancouver back in 2008 were a thing of the past with all the infrastructure work that so pained our travels a few years ago proving to be totally worthwhile.
It’s my 40th birthday and as I rise and go about my normal daily routine, I get an email from Alex in New England telling me he’s booked his European Delivery trip to pick up his new Saab 9-5. The car’s now built in Germany but they ship it to Trollhattan for delivery in order to maintain that authentic feeling. Alex is still a little undecided on whether to make a side trip to Hirsch in Switzerland. Their work is now permitted for fitment to US vehicles, but it’s still fairly expensive. Darn US dollar.
Alex is still very excited, though, and for good reason. The new Saab 9-5 that debuted just a year earlier at the Geneva Motor Show has been voted International Car of the Year. I drove it at the product launch in Sweden 8 months ago, just after the Saab Festival, and it really was a stunner.
I smile as I gaze over my monitor and look at the photo of a Cadillac sign being removed from a car dealership in Leipzig. Someone happened to be nearby when it happened and they snapped the photo for me, knowing how much it would mean to me to see the wreath and crest experiment in Europe finally cease.
That decision meant that funds were freed up to fast track the development of the Saab 9-1 compact car, a production version of which should be showing in Paris in six months time, with another 12 months before it goes on sale. The new GM CEO, Carl-Peter Forster, confirmed the model just days ago.
And that’s the real reason I’m smiling.
Life begins at 40, apparently. Well, not quite. We’ve still got a reasonable mortgage to pay off, but by the time the 9-1 comes around we should be well positioned to purchase our first ever brand new car and the 9-1 is the one that I want.
As I mentioned, the new 9-5 is an absolute stunner, but it’s too expensive for me and I’m more partial to smaller cars, anyway. The 9-5 has been an outstanding success, though. I got word just a few weeks ago that it’s now outselling the 9-3 in Germany, which is now on track to become Saab’s second largest market on the strength of some price re-positioning with the 9-3 and the sheer brilliance of the 9-5.
The 9-4x is selling in solid numbers there and in all other markets where it’s offered. It turned out to be a fair entry into the crossover market, but the rush away from larger vehicles in the US as frugality came to the fore back in 2009 really dented it’s chances of making a major impression. Hopefully it’ll do better there next year when the diesel model comes out and they replace that straight six base engine with a DI turbocharged four.
Yes, the US is still Saab’s largest market. When Steve Shannon moved on to another role back at Buick last May, some new blood came in and reassessed things. Progress has still been slow there due to the recession continuing, but things are looking up. Whilst the Aero Academy never returned, other measures have been taken to rebuild the premium nature of the brand in the US.
It all started when they gutted the Customer Service division previously controlled at a central GM office somewhere in Michigan. That office repeatedly proved beyond doubt that they were idiots in search of a village and the new crew, trained exclusively by Saab staff so as to deliver a consistent message and actually care for the customer, has done wonders at a grass roots level to begin the job of restoring faith amongst the brand community. Saab’s own internet forums (yes, they finally embraced the internet) are abuzz with positive experience stories.
Since then, they’ve tossed the Born from Jets slogan and McCann Erickson have produced some great advertising, which has actually been seen by consumers as Saab finally took a decision to show their wares in major markets.
The final piece of the puzzle will be the new Saab 9-3, which will be built in Trollhattan from later this year. 2008 buyers weren’t that happy when Saab dropped the price of the 9-3 late in 2009, but everyone else acknowledged that this was a necessary step. The new 9-3 will be slightly smaller than the outgoing model, and will once again cement the 9-3 as Saab’s undisputed volume seller.
Ah well, that’s my morning email out of the way. Time to head into Trollhattan Saab HQ for another day at the office. One of my contacts at Saab Oz messaged me twice last night about the big Australian 9-5 launch I’m attending tomorrow. Apparently Mr Ian Thorpe is demanding only blue M&M’s in his dressing room to remind him of his swimming days.
Moody biatch!
——
* this isn’t a political blog, but I couldn’t resist at least one reference. It’ll stop now.
** I have nothing against the current management of SaabUSA personally. They’re all great guys. But I can’t identify a single positive thing that’s come out of those offices in the last 18 months.
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13 responses so far ↓
1 PT
// Sep 30, 2008 at 2:38 pm
Nice rant steve. Well balanced.
Here’s an essay question for all those school students who want to prepare for first year marketing at university next year.
Saab: The persistance of a brand despite its marketing and commercial management. Discuss.
2 Rogan
// Sep 30, 2008 at 2:57 pm
I’ll more than likely be joining you in Canada for those 2010 olympics, Swade…
-Rogan
3 Jeff
// Sep 30, 2008 at 4:17 pm
CEO Forster would be pretty much the best thing ever, second only to GM giving Swade a position on the board of directors.
4 Troll96
// Sep 30, 2008 at 5:26 pm
Perhaps the diary could also have added the following…
Sales of the 2011 9-3 are expected to take off following Saab’s decision to eliminate the back seats in favor of supersized front seats for aging baby-boomers. Newly-retired boomers are the only demographic still loyal to the German/Swedish/Mexican/American car maker. Saab was left with little choice after designers concluded that only small pets and double amputees could fit in the back of the downsized vehicle.
Ever socially-conscious, Saab has been awarded the Eco-2011 prize after the breakthrough discovery that all of its Bio-Power vehicles could achieve 50 mpg running on recycled melamine. Huge stocks of surplus melamine became available in 2009 after the export market for Chinese processed foods collapsed.
5 ctm
// Sep 30, 2008 at 7:22 pm
Sarah “evolution is evil” Palin… I think she can see dinosaurs from her porch in Alaska.
Yep, those oil deposits are full of dinosaurs. Dead for centuries, but they are there! EnG
6 MarkoA
// Sep 30, 2008 at 9:04 pm
Very nice! So you kicked Steve Shannon to Buick. All righty!
2010.. I know I´m not driving a new Saab anymore, my main car is of different make. Saab was not able to offer XDW eLSD diesel combi with raised suspension. I drive Subaru. On some nice sunny afternoons I take my fully restored 900 T16S Aero for a spin and enjoy the h**k out of it! International Saab club meeting is in Finland 2011. Long live Saab.
Gävla GM…
7 Drew B
// Sep 30, 2008 at 9:56 pm
And no doubt President Palin has well and truly proved that a pit bull has more brains than a hockey mom, regardless of whether it’s wearing lipstick.
8 Tedjs
// Sep 30, 2008 at 11:47 pm
Hopefully in this timeline I am passing my ’07 9-3 on to my wife and enjoying picking out a new Saab model of my choice since there is plenty of new product to choose from.
This would also mean that:
GM used a large chunk of the money it received in the 2008 economic bailout (or rescue) plan to revitalize Saab (after the bill finally passed on October, 3rd 2008).
I made a lot of money after buying GM stock for $1.98 a share on October 2nd, 20008 after nearly a week of record drops in the U.S. stock market.
Gasoline stabilized to a reasonable level in early 2009 as a result of a sound energy policy that came from the new administration that was elected in late 2008.
Erin Burnett (formally an anchor on CNBC) became the U.S. Secretary of the Treasury due to her uncanny ability to explain economic policy to Americans in plain English.
9 Smoke_Jaguar4
// Oct 1, 2008 at 12:02 am
Surprise news for 2011:
The next 9-3 will feature a mild hybrid approaching 300 HP and 40 MPG combined.
10 MitchbSC
// Oct 1, 2008 at 1:01 am
I see Aero Academy’s demise mentioned twice. I was in for service two weeks ago to have a tire patched. Either merged on to an offramp through debris or found one of the finishing nails my 6 year old kid had on the driveway. One of the sales managers caught me, took me aside, and said he *just* heard from a *customer* that Aero Academy was canceled. He was concerned whether I’d buy Saab. I told him ‘don’t worry’, I’ll be back. Saab’s performance and economy can’t be matched by anything else in the GM lineup. Anything that does loses on style. I also informed him that Aero Academy was lost to cut backs about two months ago. Too few went. It required too much marketing dollars and insurance. I’m the rare case where Aero Academy won the purchase decision, as I almost went Audi in 2006.
Speaking of 2010. Looks like my 2007 9-5 Aero will be a classic. I got out of air travel for my job and have been driving my 9-5 to a job site 3.5 hours away. Love the car! (Love the mileage reimbursement too.) 28.5 to 30+ MPG depending on octane, speed, and my mood on the accelerator. Too bad it’s a lease. 13 of 27 payments left. I wonder if GMAC has “StupidBuy(tm)” for those of us who want to keep our leased vehicles. For what I remember it’ll cost, I need to write the US Congress for a bailout.
Hey, speaking of pollyticks, sorry to bring a counterpoint to the group-think (yeah, but I’m one-quarter French-Canadian, it happens) :
1. Saab will not have models in queue to meet the mandate of President Obama and Greasy Joe Biden that we in the U.S. return to rural areas in a zero carbon footprint manner to work the collectives.
. I would’ve considered Obama until his selection of Biden. What a Loonie. Change? In Canadian coins maybe … [Note: McCain is a flaming boob too but I can't ridicule the elderly before noon Eastern time.]
2. Canada has kicked U.S. butt every time we’ve tried to invade. President Palin’s invasion would only result in a massive cash infusion to the Canadian economy, albeit at $0.35US to the Loonie in 2010. The US Northwest and Midwest will subsequently request annexation by Alberta, Saskatchewan, and Manitoba.
3. Loonie. OK, I’ve said it three times. Nothing? Beetlejuice, then?
11 eggsngrits
// Oct 1, 2008 at 10:54 am
All:
Saab is certainly adrift in the US. It’s all about the product, which is a direct quote from Steve Shannon himself. So, it should follow that new product can’t come soon enough.
12 zippy
// Oct 1, 2008 at 11:03 am
I will be LEAVING Vancouver during the Winter Olympics.
SWADE, I almost fell of my chair laughing at this comment “The trials of driving around Vancouver back in 2008 were a thing of the past with all the infrastructure work that so pained our travels a few years ago proving to be totally worthwhile.” Wishful thinking for anyone who actually lives in Vancouver.
I have booked my fights to Geneva -whilst I am on holiday in the UK- for the 11March so I hope the all-new 9-5 will be there. I shot an email to Saab HQ in Sweden who verified the car will be there.
13 Rogan
// Oct 1, 2008 at 11:23 am
Alright, it’s on.
No, it’s not. Comments are now closed. I’ll nip this one in the bud and learn from my mistake.
I knew that including a humorous reference to her disastrous (by any measure) interview with Katie Couric would possibly be a hot button issue, but there’s around 1,300 words here, the vast majority of which are about Saab. – SW
And, in the spirit of peace, I’ve gone farther than nipping the bud and I’ve pruned back all of the unfortunate stumblings ino the political arena. Cars, it’s about cars. With civility, please! EnG
-Rogan