Saab-Spyker Burns $160m In 2010, Cuts Sales Projection To 30k
Since we’ve already irritated Saabistas by posting a comparison of the Nissan Juke to the 96, we might as well just come out and say it: Saab is one sick puppy. Third quarter results are out for the Dutch-Swedish automaker, and they’re not good: the firm has lost $70m on an operating basis last quarter, and has burnt through $160m in the the first nine months of 2010 [full results in PDF here]. Wholesale and retail sales in the first three quarters were down by 10 percent and 45 percent respectively compared to the first nine months of 2009, and Saab has cut its 2010 sales projections from 45,000 units to 30,000 units, or half of the 60k projection Saab started 2010 with. Improbably, the company still believes it will sell 80,000 Saabs next year, and 120,000 in 2012. And though Saab-Spyker has a negative equity of about $234m, the company says it does not need to recapitalize. In other words, comparisons to the Nissan Juke are the very least of Saab’s worries.
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I think what Saab needs is (with apologies to Jeremy Clarkson) a reasonably priced car. I like the very un-Saablike 9-5, and my local dealer here in MA told me sales have been ahead of his projections. The problem is, they need a competitive entry level model. The current 9-3 is now on its 8th year, and while it's a decent car, it's not really competitive, not with 270hp Sonatas flying around. A niche manufacturer trying to play in the mainstream will have trouble getting traction with a $50K car, as good as it may be. I think a slick, new 9-3 is what they need to get their mojo back.
It's interesting to compare the Jaguar turnaround to the current attempt at turning around SAAB. Jaguar recognised the need to reinvent the company by embracing a brave new styling direction. The result was a sales upturn. SAAB looks to it's past and sales keep falling... time to change the record SAAB.
A Saab story indeed. How long until the rest of the tooling and trademarks end up with a Chinese buyer at dimes on the dollar?
They're so toast that we'd might as well be discussing Saturn's chances. The NEW 9-5s are carrying eight to ten thousand dollar discounts before you start negotiating. The only ones I've even seen are in dealer inventories. Saab of Santa Ana has new 2010 9-3s in stock starting at $20,580. I doubt you can get an atuomatic Honda Civic EX for that in California. I know that the new 9-5 is still just a Buick, but you can't go far needing close to 20% discounts on your cars the day they're released.