The Business Plan To Take Saab Automobile Up Market

Posted on 29. Oct, 2009 by in 2000-2009

“Upmarket (or high-end) commodities are products, services or real estate targeted at high-income consumers.” – Wikipedia

Dagens Industri has recently posted what they believed to be a heavily summarized version of Saab Automobile’s new business plan.

This business plan effectively lists three phases of the plan, with the intent that by the final phase, the company will be fully transformed into an up market automotive manufacturer.

Saab History unlike many media outlets and blogs, decided to verify this information with official channels before communicating or speculating about it here online for the global public.

In my correspondence with folks at Saab Automobile AB, I have received responses from them stating that they cannot comment on this report. I would have liked to hear that it was either false, or had some truth to it. However, I did hear that “business plans can change” which leads me to believe that if this plan is in fact authentic, there could be some modifications to it as things progress and markets change, etc. If the plan is not authentic, then it really doesn’t matter what was in this list because we have no real idea if it’s authentic or not.

I can actually say that I believe this was just someone’s speculative editorial from Dagens Industri, from what I’ve learned from other insiders over the past week.

So, why am I posting this you may ask if I don’t believe it’s really authentic? Well, I think that for historical sake, it should be noted because who knows, maybe down the road the plan in part, could see the light of day and we’ll have a time stamped record of it here on Saab History for our reference.

Here are the phases from Dagens Industri of what they believe Saab Automobile’s business plan.

The 3 phases for Saab:

2010-2011: present phase

* 115.000 cars sold gives break-even financially

* Average price per car: 189.000 SEK / €18.3034/ $27,102.15 USD

2012-2015: transformation phase

* 80.000 sold cars gives break-even financially

* Average price per car: 208.000 SEK / €20.143 / $29,874.40 USD

* New models including a 9-5 Koeningsegg Edition

2016 – : premium phase

* 65.000 sold cars gives break-even financially

* Average price per car: 280.000 SEK / €27,160.26/ $40,215.54 USD

* New models including a New 900

Tags: , , , , , ,

No Responses to “The Business Plan To Take Saab Automobile Up Market”

  1. max

    30. Oct, 2009

    Saab lovers everywher should be holding their breath….this is the kiss of death….. No way in that short time could changes in the product portfolio and improvements in reliability propel Saab’s to be sold at 150% of current prices just to break even….. NO WAY…

    Reply to this comment

  2. peter

    31. Oct, 2009

    The 150% increase in prices could reflect a change in mix ?

    Peter

    Reply to this comment

  3. Ted Y

    31. Oct, 2009

    Re: “Change in mix” — If you are including electric and hybrid, that would ease my price concerns somewhat.

    Reply to this comment

  4. Jasper

    31. Oct, 2009

    That is good news about SAAB going upmarket.
    Not so good for the sibling company VOLVO.
    The Russians test crashed a Geely at 40 mph.
    Result: 10% chance of occupant survivalability.
    Good luck Volvo with your new parents.
    Thanks to Madd Maud SAAB will be the only bona fide Swedish car company left on the planet.
    MM is truly incompetent and doesn’t care about job losses at Volvo nor get it that in five years VOLVO production will be moved entirely out of Sweden.

    Reply to this comment

  5. Anders

    31. Oct, 2009

    I think there is no need to worry. SAABs are best used and many years old. Old SAABs will always be a good buy!

    Reply to this comment

  6. Robin

    02. Nov, 2009

    Sad to say it will not work the brand cannot be taken so far up market in the time frame stated, it will take at least 5 years and will require at least 3 new models adding to the current range, industry insiders seriously doubt the group will have the finances required to develop them to the level that will justify the prices they expect to be able to charge for them, Robin

    Reply to this comment

  7. peter

    02. Nov, 2009

    It took Audi around 30 years to become an accepted member of the premium club.

    Arguably, 99, 900, 9000, 9-3 and 9-5 have all been targetted as premium contenders but have not been accepted by the marketplace.

    I’m afraid 5 years, is optimistic.

    Peter

    Reply to this comment

  8. Robin

    03. Nov, 2009

    Peter you are correct 5 years is very tight to achieve the required status, but it is possible, the Koenigsegg connection should help and I believe Saab are starting at a higher level than Audi were, the problem is that unless they get huge investment to develop new exciting models it will not happen. Robin

    Reply to this comment

  9. nc

    03. Nov, 2009

    so what ? the average cost of a saab will be 27 160.- eur by 1.4 (as de the dealer margin is about 40%) that makes 38.500 for a saab, then i guess you have to add 5000 or 7500, as prices increase by 2000-2500 eur evey two years, not bad.

    Reply to this comment

  10. nc

    03. Nov, 2009

    the only thing they have to do is to increase the quality of the plastic and the saab 9.3 can compete with the audi 4 and bmw 3

    Reply to this comment

  11. peter

    03. Nov, 2009

    The dealers would be ecstatic to have a gross or retained car margin of 40%. In fact, these days they would be ecstatic to retain 4% !

    It is not possible to comment on the prices :

    Saab has different positioning in different markets
    Is this with or without taxes
    Taxes in which country
    USD v EUR v any other currency pricing change is always considerably in arrears.
    l
    I doubt Saab or any other European brand makes money in US whilst the dollar is artificially depressed to support US industry.

    Peter

    Reply to this comment

  12. Robin

    04. Nov, 2009

    NC I work for a car manufacturer in the UK and can advise you that dealers do not enjoy a 40% profit, most dealers get around 9% as a base figure, there can be some registration bonuse’s and occasionally there may be some special deals, but nowhere near 40% occasionally it could get to around 17% but that is rare, they generally survive on less than 12% Robin

    Reply to this comment

  13. Robin

    04. Nov, 2009

    NC I work for a car manufacturer in the UK and can advise you that dealers do not enjoy a 40% profit, most dealers get around 9% as a base figure, there can be some registration bonuse’s and occasionally there may be some special deals, but nowhere near 40% occasionally it could get to around 17% but that is rare, they generally survive on less than 12% Robin.

    Reply to this comment

Leave a Reply



Production Concept