Originally posted by desmo9@Dec 11 2003, 01:32 PM
GM only has a minority stake in Subaru. So how's the 9-2 help Saab and GM in the long-term? Expand on that knowledgeably and I'd be alot more receptive...so would alot of others who like to read and participate.
I think it's a refined X-car case, and I think I'm right in my analysis... but I may not be on all counts... I want dialogue to help drive the issue. Maybe someone will make a counterpoint that I haven't considered, and I'll feel better about GM's decision. GM has made alot of bad ones in recent years. Who are you to write my post off with a five-word blurb about my "complaining"? As in I'm a glass-half empty personality because I see GM screwing up? I see alot of things they're doing right, too... but this doesn't happen to be one of them. My hope is that some influential folks are on this forum and forming their viewpoints, too.
Lastly, you don't know who I am, how many shares of GM stock I own, or much else about me... so why do you think this "shouldn't mean anything" to me? And even if I owned no shares, every American is a stakeholder in GM -- and in the American auto industry. I think there have been a fair number of clueless nimrods running the show there in the past couple decades. Their blunders have been bad for the industry, bad for the U.S. economy, and have robbed we enthusiasts of the ability to take pride in our American automobile establishment. I want to see this trend reversed...THAT'S why this matters to me.
You have got to be kidding me!! "How does the 9-2 help Saab and GM in the long term?"
By adding a 9-2X, which doesn't compete with any other vehicle in the Saab lineup, Saab does a few things.
1) It expands its line-up, which should increase sales. It's sales are 120% higher than the previous years. And its overall sales are on target to reach historic highs.
2) By adding the 9-2X, you target new demographics and expand the customer base, which in turn translates to increased sales.
3) By adding a hatchback into the lineup, you cater to Saab enthusaist who reeled over the loss over the 9-3 hatchback last year and have the need for a vehicle with greater interior space.
How does it help GM in the long term?
1) It allows them to realize economies of scale.
2) Premium automobiles have a greater profit margin than 'economy" cars. Therefore, this translates into high profits.
3) It brings credibility to GM in Europe... that GM has the ability to create cars that people WANT to drive, and are EXCITING to drive, and provide an extension to the history of the brand name. (Remember, Europe is the market of the future. If they can't compete there, then GM is dead.)
4) A strengthened Saab with the addition of Cadillac and Alfa in Europe will provide credible competion to the German premium brands.
I think what we have seen, with the resurrection of Cadillac and Saab is, to paraphrase a Japanese admiral, the "awakening of a sleeping dragon." The problem with GM for the past 2 decades is that their cars were not desired by anyone. They had lost a certain spark to it. Not to mention the atrocious quality problems. but NOW... GM has the highest build quality of any US manufacturer. Their customer service numbers are right up there with Lexus. But their cars are still a big bore. Oh... but wait a minute... we've got NEW cars from GM!! H2, CTS, XLR, 9-3, Escalade!! These are teh cars that Maericans WANT. So what if they can't afford them? Everyone wants a 7-series, but only a handful ever buy them!! These are cars peopel WANT to drive. it brings excitement back into GM.
It is an uphill battle for GM. They are still fighting a perception problem, and that's to be expected. Rome wasn't built in a day. Or in GM's case, "Rome wasn't REbuilt in a day." Just wait and see.