Re: SAAB's Future.......? GM & Component issues? - Saab 9-5 Bulletin Board - Saabnet.com
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Re: SAAB's Future.......? GM & Component issues?
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Posted by JohnW (more from JohnW) on Sat, 28 Sep 2002 20:28:42 Share Post by Email
In Reply to: SAAB's Future.......? Kinda Long, Sorry..., 9sound, Sat, 28 Sep 2002 19:43:54
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Likewise having had Saabs for a while - going back to '96 and a 900se thru a '98 95se and now a 2002 Aero - I have formed the view that Saab under the stewardship of GM now are likely to be making money: now and the quality IS improving.

1)The Saab brand will prosper because the R&D resources of GM are at Saab's disposal - a niche manufacturer with just two models could have never afforded the expense of developing the new '93 for instance.

2)Model life cycles are long and the changes year to year relatively minor and not amounting to big R&D expenditure. GM will keep it that way, slowly introducing new derivatives with huge commonality in components.

3) Like most manufacturers a sizeable chunk of a Saab is not actually made BY Saab, more like made FOR Saab and therin lies the problem.

4) A Saab is a IMHO is a pretty well screwed together Automobile - almost all of the failures are 'bought in' components - I sincerely doubt that Saab manufacture the SID displays for instance.

5) It would be incorrect to assume that items replaced under warranty are at cost to Saab - a lot of the cost (if not all) will be passed back to the component supplier and the rest as part of an insurance claim.

6) Yes, you did read right - Insurance claim - many manufacturers underwrite their Warranty Schemes with an Insurance policy - its done to protect them (and the overall viability of the company) as far as possible for product liability litigation as well as providing some stability in financial accounting.

7) Now GM have gotten their heads around what Saab is as a brand and translated that into a marketing strategy they will be gently and persistently chewing away and the BMW/Audi/Volvo/Merc competition with ever so slightly 'different' offerings.

I believe the future is bright for Saab - like the rest of the motor industry though another conflict in the Middle East could seriously scupper everyones dreams - address the component quality issues and all will be well!

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