Re: Not so unprecedented... - Saab NG900 & OG9-3 Bulletin Board - Saabnet.com
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Re: Not so unprecedented...
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Posted by Fred Swartzendruber [Email] (more from Fred Swartzendruber) on Thu, 1 Feb 2001 10:32:05 Share Post by Email
In Reply to: Not so unprecedented..., Nevin, Tue, 30 Jan 2001 20:54:41
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$8,000 off a $40,000 convertible is a little different than the apparent fire-sale on base and SE 9-3's, it seems to me.

I've been assuming that Saab was subsidizing lease and financing rates in order to build market share, but logic would suggest at some point they have to stop bleeding red ink.

If they don't succeed in firming-up a market position in the "near-luxury" segment commanding prices similar to entry-level Mercedes' and BMW's, their choices include moving down-market and pricing more realistically, perhaps "decontenting" their cars to cut costs, leaving the US market (think Peugeot), or eventually going out of the auto business. Having GM as the parent isn't exactly reassuring when you think of those options!

On the other hand, maybe nothing is permanent, with rumors Peugeot is thinking about another try in the States. And look how VW and Audi were practically given up for dead, in the US at least, in the early to mid '90s. So product still matters...

BTW, I don't see why this is "whining."

Fred


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