Author Topic: Saab aims to sell 30,000 vehicles annually in the United States  (Read 4999 times)

Steve McF

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Saab targets customer's heart, brain, wallet in N. America
Saab aims to sell 30,000 vehicles annually in the United States
Joseph Lichterman
Automotive News Europe | July 8, 2011 06:01 CET

DETROIT -- Saab executives said they're optimistic the struggling brand will be able to attract customers despite production stoppages at the company's Trollhaettan, Sweden, plant and cash flow problems.

The Swedish automaker aims to target consumers and instill confidence with a grass-roots marketing campaign that focuses on the "heart, brain and wallet," Saab Cars North America President Tim Colbeck told reporters at Saab's North American headquarters in suburban Detroit Thursday.

Colbeck said the company must move away from selling vehicles based on price and focus more on making customers enthusiastic about driving Saab's vehicles.

"Our goal is to find ways to connect with our owners and connect on that emotional level so we instill this passion," Colbeck said. He said eventually Saab aims to sell 30,000 vehicles annually in the United States.

Hurdles remain, though, as Swedish Automobile NV, Saab's parent company, had to scramble last month for funds to pay staff in Sweden, and production at the Trollhaettan plant has been stopped most of the summer because suppliers stopped shipments after their bills went unpaid.

Aug. 9 plant restart

Swedish Automobile said Thursday that production at the plant is expected resume Aug. 9 after the Swedish government approved a 28 million euro ($40 million) deal for the automaker to sell 50.1 percent of its plant to a group of Swedish real estate investors.

Swedish Automobile and Saab also say that in "additional funding commitments" have been secured over the past few weeks.

Production of the 9-4X, Saab's new crossover being built by General Motors Co. in Ramos Arizpe, Mexico, has continued as scheduled, Colbeck said in an interview after the event.

The first 2011 9-4Xs, which share a platform with the Cadillac SRX, were delivered to U.S. dealers on Saturday, Colbeck said.

Saab is optimistic that the 9-4X and other new models scheduled for release over the next two years will help reignite interest in the brand and draw consumers to dealerships.

Tom Backes, general manager of Guilford Saab in Guilford, Connecticut, said the dealership hasn't received any 9-4Xs yet, but the vehicles "can't get here soon enough."

Ad outreach

The dealership sent out e-mails to 3,500 customers interested in the 9-4X to let them know that the vehicles will be arriving "shortly," Backes said, adding that the dealership has received "interest from a cross section of demographics that never would've [previously] walked into our store."

Saab hopes to replicate that excitement with advertising campaigns targeted at the automaker's niche audience, Executive Director of Marketing David Rooney said at the event.

Most Saab drivers are highly educated, independent-minded and have household incomes of more than $100,000 (about 70,175 euros). Rooney said the key is to make drivers feel like Saabs are premium vehicles that fit their lifestyle.

The company has launched Internet campaigns on Facebook, car Web sites and other lifestyle sites. Saab also has print ads in six select markets -- including cities in the Northeast, Chicago and Denver, Rooney said.

Saab also is showcasing vehicles in high-end malls and is offering extended test-drives for interested customers. Still, Colbeck said the company has no immediate interest in expanding into TV advertising.

"TV is down the road for us," he said. "It's a scale that's not necessary for us right now. You're paying for too many eyeballs that aren't interested in you."

Saab sold 323 vehicles in the United States in June, which was a 50 percent gain over June 2010. During the first six months of the year, Saab sold 3,471 vehicles, a 370 percent gain over the first half of 2010 -- a transition time just after the automaker split off from its former owner General Motors.

Kev_Mc

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Re: Saab aims to sell 30,000 vehicles annually in the United States
« Reply #1 on: 11 July 2011, 07:53:21 AM »
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Tom Backes, general manager of Guilford Saab in Guilford, Connecticut, said the dealership hasn't received any 9-4Xs yet, but the vehicles "can't get here soon enough."

Ad outreach

The dealership sent out e-mails to 3,500 customers interested in the 9-4X to let them know that the vehicles will be arriving "shortly," Backes said, adding that the dealership has received "interest from a cross section of demographics that never would've [previously] walked into our store."

Can't see them selling many 9-4x's here in the UK until they shove in a diesel. Think the LR Evoque will sell bucketloads - Top Gear tested a diesel in last nights episode in the US so would have thought they'd be available from launch.

If they sold the 9-4x here with LPG they might have more takers....

Steve McF

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Re: Saab aims to sell 30,000 vehicles annually in the United States
« Reply #2 on: 12 July 2011, 11:10:36 AM »
Yes, why on earth they have not doen a diesel is beyond me.  :o Makes no commercial sense.

An LPG version would be a good compromise for sale in Europe, although petrol stations selling LPG are not that great in numbers as they used to be.

But they need diesel, and possibly some smaller petrol engines.

I glanced over a review of the car in What Car the other day in the shop, and noted that the 9-4X only got 2 out of 5 stars. That is not good enough I'm afraid. This is a new product, and Saab need to shift metal, - even if it is this GM product. By not having a broader choice of power units, Saab arecommitting commercial suicide with the 9-4X!

DRM

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Re: Saab aims to sell 30,000 vehicles annually in the United States
« Reply #3 on: 15 July 2011, 10:31:58 AM »
I can only concur.  The lack of a diesel will kill this car outside of North America.  Even over here in Australia people are going for diesel in this type of vehicle as a result of rising fuel costs overall and parity between diesel and petrol prices.

Let us hope this does not come to represent a fatal error of judgement.  Every other Euro manufacturer offers their SUVs in diesel.  This could be the car to save Saab, if they get it right.

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Re: Saab aims to sell 30,000 vehicles annually in the United States
« Reply #4 on: 17 July 2011, 01:02:10 PM »
The 9-4 is a car that was supposed to be released 2 years ago and should have been released 5 or 6 years ago. It's a bit of a strange car, quite why GM made SAAB concentrate on cars for the US market when they should have been working on more cars for the European market (and by extension places that want cars that are more European in scope). Once they cracked this market well then they should have been going to look towards the US markets.

Given that so many other European marques are just not available in the states as they know they can't compete there (Renault, Peugeot, Citroen, Alfa, Fiat for example) quite why there was this thing that SAAB should treat it as their major territory I don't know.

DRM

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Re: Saab aims to sell 30,000 vehicles annually in the United States
« Reply #5 on: 17 July 2011, 03:01:09 PM »
It is a strange car.  I think they would have been better off concentrating on a 'core' Saab, such as a new 9-3 convertible, or 9-3 coupe.  People identify with that type of Saab.  Throw in something special to attract people, rather than just a bandwagon jumping crossover.  However, perhaps the market for these SUVs will hold up in the US.  I see them beginning to become less popular elsewhere.

I have a colleague who has a three year old 9-3 convertible that is coming up to the end of lease.  He likes it, but leases for business reasons.  He would like another convertible.  However, he is not sure why he needs to pay A$10 - 15 000 more than he paid for this one three years ago to get a basically unchanged vehicle so is looking around at other options and will probably leave Saab.  The fact that the value of the Australian dollar has changed considerably in that time only adds to his displeasure.

On the flip side, the 9-4x if it was available in diesel would probably be the only car in the Saab range that would fit my family car requirements and at least it looks a lot better than the 9-7x.