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Date: Wed, 16 Apr 2003 09:07:25 +0100
From: Martin Rich <M.G.Richnopsam.ac.uk>
Subject: Re: GM to increase SAAB lineup


On Mon, 14 Apr 2003 21:16:25 -0700, B&D <NO_SPAMnopsamCOM> wrote: > >I think the European cars tend to be the high end cars - I think in some >cases because the competition at the nonluxury sedan areas, the European >brands would not be competitive. I recall the Ford Escort I drove after the >Ghia retailed for about US$17k equivalent. Ouch! In practice few 'ordinary' cars are sold on both sides of the Atlantic. There are exceptions: Volkswagens sell in the US, the Chrysler Neon manages to sell respectably in Europe, and Ford makes the Focus on both sides of the Atlantic - though I seem to remember that the five-door hatchback which is by far the commonest version of the Focus in Britian seemed very rare in the US. But most of the Chevrolets or Pontiacs or Oldsmobiles that GM makes in the US are never sold in Europe, any more than Astras and Vectras are sold in North America. There is a niche market in the US for slightly posh European cars, which is where Saab fits in, just as there is a niche market in Europe for monster American four-wheel drives. New cars in America (like many other things) look cheap to anybody from Britain at least - it doesn't help that car prices in Britain are the highest in Europe. But there are all sorts of costs in introducing a car into a new market, to do with gaining approvals and adapting the design to local requirments, and these costs are only worth bearing if you expect to sell a reasonable number. Martin

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