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Re: An SUV: Not sure I'm ready for this!! (kind of long)
Posted by Larry West (more from Larry West) on Sun, 23 Apr 2000 08:34:03
In Reply to: An SUV: Not sure I'm ready for this!! (kind of long), Derek Shaffer, Sat, 22 Apr 2000 22:39:48
Someone posted something like this to me privately a while ago.
Here's my take on the whole thing:
I'd heard about the potential Saab SUV back in January, when GM
announced that it was exercising it's option to buy the half of Saab
Automobile AB that it did not already own.
>From GM's perspective, the Saab SUV makes sense. SUVs are selling in
record numbers, they are highly (very highly) profitable, and
'development' on a re-badged existing SUV is dirt cheap compared to
building a new car (or SUV) from the ground up (or off another
platform).
It's hard to argue against hard dollars with 'spirit' and 'essence'.
A Saab SUV would bring probably an instant increase in annual sales
of 10-20,000 units, all in the USA, and at a significant profit for
the division. It would probably increase sales of the 9-3 & 9-5, just
from bringing more people through the showrooms.
This doesn't mean that I'm completely happy with the situation.
However, if selling Saab SUVs means that Saab continues to exist,
that's fine by me. I'll still buy their cars, used or new, and as
long as there is a Saab, I'll be able to get parts and service for my
cars.
The problems GM will encounter are several. First, the car (including
SUV) market hasn't been expanding greatly. Sales increases are
usually a product of one brand or model feeding off of another. What
Saab will gain will be at the expense of GMs other divisions, mostly
(but they're hoping it's at the expense of Ford & others).
Second, the SUV market is showing signs of levelling off. The people
who wanted them have pretty much bought them, and are getting tired
of them. They though it would be 'cool', but now are realizing that
they bought a truck for $40,000, and really want the ride of a car.
Lastly, people are noticing the fuel inefficiency of the immense
trucks they are driving. The price of gas hasn't helped any in this
regard.
With any luck, by the time GM gets around to launching the Saab SUV,
the whole SUV phenomenon will be on a steep spiral downward, and it
will only exist as an artifact in the Trollhättan museum.
if you are interested in the NJ Saab Owner's Club, go to:
http://www.saabclub.stockholm.nj.us
--
Larry West
NJ Saab Owner's Club
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