Johnny has posted an interesting excerpt from an interview with Jan-Ake Jonsson, published in Sweden’s Dagens Industri newspaper today.
This was originally posted in comments, but I thought it worthwhile bringing into the light in a separate article.
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A really interesting interview with Jan-Åke Jonsson is published today on Dagens Industri site.
Some excerpts (sorry for the quick and rough translation):
[About delays and cancellations of new models:]
“Our only change is that we have pushed 9-4X from 2009 to 2010. We have been successful in these discussions within GM”
[About the decreasing sales volumes:]
“We knew 2008 and 2009 was going to be difficult, because we are just about to launch new models. We already expected decreasing volumes and took measures last year to adjust the production.”
[About sales volumes in the USA dropping by 30%:]
“We have made a decision not to chase volumes at any cost. Instead we have raised the prices by 11 % between 2008 and 2009, we’ve added more standard equipment which is good for the margins, we’ve moved away from some sales networks [not really sure how to translate that one.. /J] and our US operations have actually gone from a negative contribution to a positive segment contribution [not sure about what JAJ means here /J] despite a sales drop by 8,500 cars.”
This year Saab will sell just short of 100,000 cars, and next year it will be even less. But JAJ confirms that two new models will be launched during 2009: an all new 9-5 “to be launched second half of 2009″, and the 9-3X.
“I think it [9-3X] has a much greater potential than we have imagined. It is a vehicle that is more passenger car-like than a cross-over. That segment has a potential to grow more than expected.”
Whether the plans for a 9-1 is cancelled:
“No. We have a need for a small car and we have lots of different ideas. If we work together within GM it could be engineered really quickly. But GM needs to get a clear view of the future finances, whether there will be financial support from the government. For now, the 9-5, 9-4X and the new 9-3 are prioritised.
DI: sounds like the decision about a future Saab small car is way ahead?
“I don’t think so.”
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Again, like the interview I did with Eric Geers last week, JAJ is maintaining a positive frame of mind for the media.
Also of note is the confirmation from the boss of what was mentioned last week, that the Saab 9-5 is still scheduled for release in 2009, most likely as a 2010 model.
The note about the US market actually making a positive contribution is an interesting one and it’s one that I just can’t comprehend. I’d love to get some better of understanding as to what he meant here. The 9-7x makes huge margins, as does the 9-5, but the incentives they’ve been offering on these models must surely eat significant amounts out of those margins.
I hope he really means it when he says a small car would be quick to develop. And I hope we still get a chance to see it happen.
My thanks to Johnny for the link and the quick translation.
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Sounds like he means that selling less cars at higher prices is actually making more money than selling as many cars as possible at almost no profit. I suppose only they really know though…
Not exactly on subject, but how exactly do you pronounce “Jan-Åke”?
Jan-Åke
The “J” is pronounced without the “d” sound.
The “an” is with a long “a” as in the bird Swan. (replace “Sw” with the “J” above) = “Jan”
The “Å” sound is pronounced as the sound of “oa” in broad.
The “ke” sounds like the “ke” sonds in kernel.
Easy: Janoake
TT is right, except that in English that would be a short “A” sound in “Jan”. Long “A” is like the “a” in game.
I don’t care about the pronounciation. I’ll probably never talk to him. But I see that Jan is being pronounced almost the same way as we Dutchies do it.
In the meantime this is the second time that we hear that selling Saab’s in the USA actually brings money in GM’s pocket! I think the first time was in an interview with Wagoner, but it could have been Jan Willem Vester too.
I hear the message but am not sure whether Saab can really profit from raising its prices. Of course, it does not make sense to “chase volume at any costs”, as JAJ is putting it. Anyway, in some markets, “volume” is not the term you would use to talk about Saab sales figures, anyway.
Voume, on the other hand, is what dealers need to be profitable, as many dealers do not or hardly make money from selling new cars. They make money from selling used cars (No new cars, no used cars!) and from maintenance and servicing. If you don’t have many cars to service – as it seems to be the case with quite a few Saab dealerships – you will finally have to give up the brand and close down or find another brand that will provide more volume.
For the dealers all of that sounds like bad news. Without loyal dealers that are willing and able to provide excellent service quality, a brand is likely to lose customers. That seems to be happening to Saab in many markets.
In the end, Saab will have to come up with a new and very clever marketing strategy – and I guess, it better be new to the industry than new to just Saab.
Yours
saabista63
Higher prices and a much more favourable dollar rate to the swedish krona (compared wuth previous years) can make a big difference to the bottom line
But can Saab survive at high prices without the US market? Doubtful.
“we’ve moved away from some sales networks ”
I read this to mean … “we no longer offer employee purchase discount pricing on the 9-3 which discount compiled with massive rebates substantially impacts our profit position”