Saab: Life Is Peachy
Published: January 6th, 2011
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Last year, Saab sold 31,696 vehicles in markets around the world. For some contrast, that’s less volume than the Mazda6, Ford Flex or Acura TSX sold in the US alone last year. But don’t worry folks, according to Saab-Spyker boss Victor Muller [via Automotive News [sub]], everything is going to be just fine. As it turns out, Saab has a very specific problem with an easy cure.
One of the largest challenges in 2010 was to restock our dealers around the world to normal levels again, especially in a market like the United States, where you need dealer stock in order to be able to sell cars. For instance, when we acquired the company, there were a mere 500 cars left on the ground in the United States. Normal inventory levels in this market should be at 6,000-7,000 units. In 2009, Saab Automobile sold 39,800 cars, but built only 21,000. As a result, inventory levels were depleted by almost 19,000 units. In 2010, we only filled the pipeline with less than 4,000 units. All in all, with all the accomplishments made so far, I am very confident that the foundations for delivering on our business plan are in place.Except for the fact that, according to Wards Auto, Saab-Spyker ended November with 269 days of supply, the largest inventory in the business. In November of 2009, when Saabs were allegedly “depleted,” Saab’s US operations were rocking an industry-leading 156 days of supply. As recently as 2007, Saab matched its current global number in the US alone; last year, the brand sold 5,445 units, a 37.3% drop from 2009’s abysmal (but, given the firm’s turmoil, understandable) 8,680 unit performance. Next year, Saab wants to sell 80,000 units worldwide, and plans call for 120k units and profit in 2012. I’m not sure where Muller gets his optimism from, but I could sure use a hit of it about now.
More by Edward Niedermeyer
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There is still something about Saab. i may be optimistic (not quite as much as Victor Muller) but there is something different in driving a Saab versus driving a Malibu. Yes, there's the Epsilon platform and Ecotec engine under the hood, heck even the radio used is from every other GM product, but what makes Saab, in its present form, so alluring that when TTAC post anything Saab related people come out asking about the possibilities of owning one with others arguing over GM influence and reliability issues. There is no where near this much passion/angst/interest when the Hyundai Sonata is mentioned, which according to TTAC is the best four door sedan presently sold in the US for a reasonable value. Maybe it's the appliance versus the automobile argument that keeps the Saab drivers coming back. There is defiantly something Saab possesses that I can't figure out, but i know it's there (being a daily saab stalker on cars.com, myself).
Thanks for the spot-on reply.