Third Model Will Help Make Saab Profitable

[Perian]

Link: http://www.autonews.com/apps/pbcs.dl...0316008/111601

Jason Stein | Automotive News / March 19, 2007

GENEVA -- With the addition of a third model in its lineup, General Motors’ Saab brand will be profitable “toward the end of the decade,” GM Europe President Carl-Peter Forster said.

Forster said GM has recently lowered Saab’s break-even level substantially by cutting costs. GM’s task is to now start growing the brand with new product, he said. Forster is chairman of Saab.

“We have taken the break-even point down massively,” Forster told Automotive News Europe at the Geneva motor show. “It’s not too far from where we are now.”

GM does not break out financial figures for its brands, but analysts estimate Saab has lost about €750 million since it was acquired by GM in 1990.

In Geneva, Forster said Saab will unveil a face-lifted version of the 9-3 and a new 9-5 within the next 18 months and “we will work on an expansion of the product lineup into the SUV range in the not-too-distant future.” With a third vehicle –- a “tailor-made” Saab SUV –- Forster said Saab will “definitely be profitable.”

GM has folded the Swedish brand into its global production and product development system, cutting jobs and reducing costs. In the US, GM tried to boost Saab by giving it the 9-7X, a medium SUV based on the Chevrolet TrailBlazer, and the 9-2X, which is based on the Subaru Impreza mid-sized car.

Those models have not sold well. But Forster said a new SUV-type vehicle designed as a Saab will help make the brand profitable.

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[Perian]

Originally Posted by Perian

“we will work on an expansion of the product lineup into the SUV range in the not-too-distant future.” With a third vehicle –- a “tailor-made” Saab SUV

I wonder what that will be?

If they take the modification route, I'm sure there will be capacity at Spring Hill for a lambda based derivitive.

This time however, time is on Saab's side. No more Chevy and Subaru grill changes.

They can take the time to really differentiate it from the new Chevy model to be produced there.


Or perhaps a Vue based model from Mexico?

Who knows?

.

[jbartley]

9-4x yaaay!

I think a shortened lambda, would make a nice 9-6x.

[kenman923]

Third model? Don't they already have four models? Are the discontinuing the 9-2 and 9-7x?

[SUPERBADD75]

more on the destruction of the Saab brand... WTF are they thinking at GM HQ? the 9-7X and 9-2X haven't done well because they are not Saabs, they're not what Saab is all about, and they never will be. Saab doesn't need an SUV, Saab doesn't need the 9-3 to be ruined by an ugly face that's supposed to be based on the Aero-X concept, and Saab doesn't need to have all the shots called from Detroit. Saab made their way on quirky luxury cars that were fun to drive and didn't fit the mold of BMW or Mercedes. why does GM continue to try to pattern Saab after the other luxury marques? by going a different direction they'd be able to lure in a different clientele that isn't being satisfied by current offerings. Saab needs luxury hatches and wagons that are safe, fun to drive, and unique. i hate this, i love the Saabs of the '80s..... the brand doesn't even come close to resembling that company now. what a damn shame.

[paul8488]

9-2x is already gone, and they don't consider the 9-7x a true Saab (which is correct). I like the idea... 3 Saab nameplates, at least in the short term, works well... since there are sedan, convertible, and wagon 9-3s and sedan and wagon 9-5's. Later they can add a proper 9-2 or 9-2x and an Areo-X, but adding a small CUV first is a wise first step.

[Xeper]

Maybe something like this...


This was taken from a GM official presentation video.. hmmm

[nadepalma]

Originally Posted by kenman923

Third model? Don't they already have four models? Are the discontinuing the 9-2 and 9-7x?

He probably means a 3rd model that will be sold world-wide. The 9-7X is only sold in North America as was the 9-2X.

[Blair1118]

Captiva??

[JVal14]

Originally Posted by SUPERBADD75

more on the destruction of the Saab brand... WTF are they thinking at GM HQ? the 9-7X and 9-2X haven't done well because they are not Saabs, they're not what Saab is all about, and they never will be. Saab doesn't need an SUV, Saab doesn't need the 9-3 to be ruined by an ugly face that's supposed to be based on the Aero-X concept, and Saab doesn't need to have all the shots called from Detroit. Saab made their way on quirky luxury cars that were fun to drive and didn't fit the mold of BMW or Mercedes. why does GM continue to try to pattern Saab after the other luxury marques? by going a different direction they'd be able to lure in a different clientele that isn't being satisfied by current offerings. Saab needs luxury hatches and wagons that are safe, fun to drive, and unique. i hate this, i love the Saabs of the '80s..... the brand doesn't even come close to resembling that company now. what a damn shame.

I think a lot of people (at least traditional fans of Saab) feel this way. I was never a fan of the older Saabs, and I'm no great historian of the brand, but I can understand how people would be upset by the current direction. That being said, GM didn't acquire Saab for it's niche market or to attract a small cult following with it's quirks. It bought Saab to glean it's FWD and 4-cyl. technology, and also to gain entry into the European market. In order to accomplish the latter, they have to go mainstream and compete with BMW and Mercedes. This has been the plan from the beginning, and while it's understandable to be angry that GM bought Saab to change it, taking it mainstream should be expected. And it doesn't necessarily mean the brand won't be successful, it means it will be done in a different way.

IMHO, I think it's more important that Saab offer a competent entry level 9-2 than introduce a trendy crossover. If nothing else, Saab should compete with Volvo, and I think Volvo will have success with the S40/V50/C30. In general, I think customers (both U.S. and Euro) would be more willing to try out a new Saab car than a new Saab SUV. On top of all of this, luxury makes are increasingly offering smaller cars (A3, 1-Series, C30) and GM has no such offering; to me Saab is the natural choice to bring something like that to market.

[camaro_freak]

Originally Posted by kenman923

Third model? Don't they already have four models? Are the discontinuing the 9-2 and 9-7x?

I hope so.. I hate rebadges...

[dederer]

The 92x wasn't a saab but a good blue print of what a small Saab should be. The 97 was the best of the group on that platform. An SUV with Saab design and engineering ques would be nice.

[CrunkedRL]

Originally Posted by Blair1118

Captiva??

I can see that. Maybe as a Land Rover LR2 fighter, it already has the Euro styling. I still think Saab needs a hardtop convertible to compete with the likes of Volvo though.

[Lichtronamo]

Probably paired with the Theta Cadillac "BRX" CUV rumored to be positioned below the SRX.

[HoosierRon]

Originally Posted by SUPERBADD75

more on the destruction of the Saab brand... WTF are they thinking at GM HQ? the 9-7X and 9-2X haven't done well because they are not Saabs, they're not what Saab is all about, and they never will be.

What are they thinking? Oh, I don't know... maybe they are thinking that Saabs are sooooooo cool and quirky that, but for the arrogant Americans, Saab would have gone out of business entirely years ago. Then who would you blame?