Trollhattan Saab has changed!
The site you're viewing now is the original Trollhattan Saab weblog, though it's now an archive only and no new material is posted here. As of February 2009, all new material is posted at our new site - Saabs United.
Please join us at Saabs United and get your daily Saab fix from Saab sources all around the world.
As I fossicked through GM’s third quarter 2008 sales data last night, I had a Donald Rumsfeld moment. I realised that there was something that I didn’t know that I didn’t know.
I’ve always just assumed that Saab were GM’s smallest brand. Even though they’re a global brand, the sales are so small and Saab always seems to struggle so much to forge a real identity that I figured they must be GM’s smallest brand.
Not so.
That’s right. Hummer is GM’s smallest brand. I’d never consciously thought about it, but I guess it makes sense.
And if GM can work up a business case to sell their smallest brand, then surely they must be able to work up a scenario to put us all out of our collective …… ummm…..exhaustion (misery just didn’t seem right) and sell Saab to someone who will make something of it.
Here are Saab’s 3Q global sales figures again, as I wrote them up last night:
Saab global sales were down in the third quarter by 29.3% (20,938 this year vs 29,633 last year). For the full year so far, Saab’s global sales are down by 21.1% (75,453 this year vs 95,620 last year).
Now, if I were writing that for Hummer, it would have read as follows:
Hummer global sales were down in the third quarter by 54.6% (8,402 this year vs 18,521 last year). For the full year so far, Hummer’s global sales are down by 39.5% (30,302 this year vs 50,087 last year).
Or, to put that in terms that are less eloquent and easier to compare:
Saab 3Q 2008: 20,938
Hummer 3Q 2008: 8,402Saab Global 2008: 75,453
Hummer Global 2008: 30,302
BUT, I hear you say, Hummer have been on a bummer due to high fuel prices and the news of its imminent sale. To that, I’d say compare those year-to-date figures that were quoted in the comparatives (i.e. for 2007, before the sale and fuel spike).
Saab YTD 07: 95,620
Hummer YTD 07: 50,087
GM Global data broken down by individual brands is not that easy to find. They’ve only been publishing it in recent times. Nevertheless, I found this quarterly global sales report that took things back even further, into 2006.
Saab – full year 2006: 133,936
Hummer – full year 2006: 82,380
What does all this mean?
Not a whole lot in the overall scheme of things. Whilst Saab might be bigger than Hummer and have a modus operandi that’s more in line with the world’s future motoring needs, Saab doesn’t have the distinct identity that Hummer has, which therefore makes Hummer an easier item to sell, to some degree at least.
Still, it means that Saab has something.
If this whole GM/Chrysler thing means that the merged entity has a chance to sit down, take stock and evaluate its portfolio of brands, I hope it does something consciously good with Saab rather than just letting it burn in the background, or fade away to nothing.
Saab has been weaved into the fabric of GM operations, but they still have a worldwide marketing presence and real estate in Trollhattan. Where there’s still something like that to offer, there’s someone who may be willing to take it on at the right price.
–
16 responses so far ↓
1 PT
// Oct 30, 2008 at 10:21 am
A nice ray of optimism. Thanks Swade.
2 jchan2
// Oct 30, 2008 at 10:38 am
I’m hoping Nissan-Renault takes on the brand; it would give Renault a US Dealer Network to reestablish itself and the necessary funding Saab requires to refresh its lineup…
Plus, there’s little overlap with Infiniti in the US, at least IMO.
3 Kroum
// Oct 30, 2008 at 10:56 am
Don’t know why everyone is so focused on Renault-Nissan – they already have Inifiniti, which is a very popular brand in North America and they seem hell bent on establishing its presence in Europe, too. Now, I will be the last person to put a faux premium brand on the same table with Saab, but buyers speak with their money.
PSA makes more sense as a Saab buyer – unlike R/N, they have virtually zero presence and prestige in the U.S. Even in Europe, Citroen is not at Saab’s level of prestige and exclusivity.
I also see BMW as a possible adopting parent, but I do have my fears – the Bavarians put the last nail in Rover’s coffin. To their credit, however, they have managed Mini extremely well, so perhaps they are better at handling niche brands.
Realistically, there won’t be many buyers willing to part cash for a money-loosing automaker with a limited model line-up, poor reliability record, production facilities in one of the wealthiest countries in the world, and virtually no market share. Sadly. The buying frenzy is over and risky investment endeavors are so Q2/08.
4 Markac
// Oct 30, 2008 at 11:08 am
I’d still like to see Mercedes give Saab a go. I know the whole Daimler/Chrysler thing was a monumental stuff up, but buying Saab woud be totally different and on a much smaller scale.
It would give Daimler a two pronged attack against BMW and Audi and a small 9-1 car could even go up against BMW’s Mini. Mercedes could definitely do with another brand. Smart doesn’t really count for much and I think Saab in the long run, could take Mercedes away from it’s (sometimes) conservative appproach to almost everything. There would be a lot to benefit to both brands.
5 ck1x
// Oct 30, 2008 at 11:32 am
I for once agree with the whole Renault/Nissan thing. I think most people that would buy a Saab would not purchase a an Infinity or a top of the line Nissan for that matter. The distintion between the two brands are varied enough where the two products could co-exist in the same market just targeted differently. Plus under a Renault/Nissan tie-up we would have a greater chance of seeing the Aero-X produced for sure. Yeah I don’t know why we are throwing ideas like these out they are probably far from reality of what will likely happen with Saab, but it’s a fun thought in the end..
6 zippy
// Oct 30, 2008 at 11:32 am
Hate to put a damp squib on the Hummer/Saab comparison but I do suspect Hummer makes a lot more per vehicle than Saab does.
7 swade
// Oct 30, 2008 at 12:24 pm
Maybe not as much more as you think, Zippy. But on the whole, probably.
One third of Saab’s US sales are made up of 9-5 and 9-7x and I imagine those two would have bigger margins than Hummers. Of course, then there’s the incentives they’ve put on the hood of those vehicles, but I don’t think Hummers are necessarily going at MSRP either.
Kroum, I’ve wondered about BMW, too. I always wanted Porsche as an adoptive parent, but now they’ve taken over VW, BMW might be the other good fit (much as I hate to say it).
8 Mag-X
// Oct 30, 2008 at 2:11 pm
Hummer may be smaller, but GM doesn’t act like it. I still see commercials for the Hummer. On the other hand, I was seriously surprised just to see an ad banner for Saab on Pandora the other day.
You’d think in these times of high gas prices, they’d be pushing Saab hard, but no, they’re still trying hard to move Hummers and Escalades.
9 ctm
// Oct 30, 2008 at 5:47 pm
I’m kind of intrigued by all this praise for a French owner of Saab. Do you know the state of the French unions? Think UAW, then add 5 times more socialism and 20 times more nationalism. One hour after the take-over they would rally in the streets of Paris and demand that this weird thing called Trollhättan is closed down so that the French workers have something to do.
10 ctm
// Oct 30, 2008 at 6:56 pm
Actually, I had a dream (or something) last night.
Porsche is buying the VW group. Reasons? Burning their cash, preventing Audi from building even more supersportscars, and maybe to get even in some old family feud. Through VW, the also get control of Scania. Why not sell Audi? It would bring loads of money at the moment. Audi seems to stand more and more on their own compared to the rest of the VW group, so it could work to chop it off. And when they got rid of Audi, they buy Saab. Saab will never build supersportscars, and can replace Audi as a premium brand much more in line with the tastefulness of Porsche. And once again, Saab and Scania are together… Oh my…:)
11 swade
// Oct 30, 2008 at 7:06 pm
ctm, I think you’re in the wrong industry…..
12 van god los
// Oct 30, 2008 at 7:48 pm
ctm, sorry to disappoint you but audi is wayyyyy to attached to VW to be sold as an idependent entity.
they share almost all of the platforms, engines, transmissions, … with other brands of the VAG group. That’s one thing that the VAG group does very well : they make one good platform/engine/transmission/… and then put it in lots of different brands (seat, skoda, vw, audi, porsche) and models.
Examples : the new 1.4 tsi engines (with compressor and turbo!), the DSG 6 and 7 traps dubble clutch transmissions. That are engines and transmissions that GM has no substitute for.
But GM does have 10 (or so
) 2.0 outdated petrol engines.
13 Ken H
// Oct 30, 2008 at 9:31 pm
Porsche is melting into VW because they then have a chance to survive with the future emission limits. The average CO2 number for VW would be quite low, even with Porsche on board.
14 ck1x
// Oct 31, 2008 at 2:28 am
Well I for one think at the current rate GM is going, they could care less about the whole Saab brand and it’s future. Someone actually mentioned this before on this site and I’m starting to wonder if it may come true. Maybe GM is producing excellent Concept models just to generate buzz for the brand so that they can sell it for the potential that’s there and not for the current product line-up status. You have to admit, with the press and critical acclaim that Saab receives from it’s ground breaking concepts, under the right management and with the right financial backing Saab has the most untapped potential of any automotive brand out right now.
15 GiTi
// Oct 31, 2008 at 6:28 am
The best fit would be Daimler (Mercedes, Smart) of Germany.
They have no good offers when you want a front wheel drive.
There is not much overlap in the potential customer base (modern vs conservative).
This take-over would certainly improve SAAB sales in Germany but may hurt in UK.
16 OHNO
// Oct 31, 2008 at 8:44 am
After selling Saab solidly in the UK for the last 20 years I can see nothing ahead but a shut down…
I can’t see the Saab marque is of any value to BMW group what so ever .
It would be better for BMW to let Saab die from a business point of view. There would be less competition in the marketplace and I’m sure they would pick up customers if Saab closed down.
Renault has it’s hands full with Nissan and why would Mercedes need another brand? They already have a model range beginning with virtually every letter of the alphabet to fill every niche already .
What real value does Saab give to any other car maker other than it’s name ? ….And sadly who really cares anymore other than a small hardcore of fans …who tend to buy second hand cars .
As already said the legendary brand loyalty is all but gone , the products are dated , poorly made , unreliable and well off the pace of the current crop of cars.
I hear far to frequently ,from customers, that they have had several Saab’s in the past but they will never have another .
The majority of new customers who have come to Saab in the last 5 years will never buy another.
GM does not want invest. It simply can’t be worth investing in . The company does not make money and does not sell enough cars.
There are simply to many models and manufactures to satisfy the global market place. Sadly some manufactures will have to go.
To me it really does seem another Rover type situation . However Rover did have the Mini .. Saab has ?? I can’t see the Swedish government being at all interested in getting involved . Can you?
Also the sales figures are totally inflated this year anyway !!
Currently there are simply thousands (over 2000 maybe over 3000! )of pre registered Saab’s sat at the docks .
UK Saab franchise agents and specialists have had enough and many have shut down or have chosen to leave the franchise.
When there is almost 30% off a new car you know there are problems ahead. Also the warranty reduction and price increase in the US seems quite a black statement of Saab’s predicament .
The UK is the biggest market for Saab and if it’s awful here I can only guess how bad people are feeling worldwide .
I really think that GM thought the Cadillac BLS would take off over here ( have you seen how much they spent on advertising the car ) . If it had I think Saab would have already been on the way.
I’ve sold Saab for the bulk of my life but I’m very sad to say that part of me would like it put to rest before the good memories people have of the older cars fades away . I can see a similar end as I think Oldsmobile had ? Maybe 1 years notice , a final run and then closure. We are already seeing big signs in cost cutting – wish does not fill me or my co workers with any confidence for the times ahead.