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USA Auto Sales 101 - Volume, then Breadth. Sedan First.
Posted by redirector (more from redirector) on Sun, 28 Apr 2002 19:27:10
In Reply to: Ford Focus Hatchbacks sell like hotcakes..., IronJoe, Sun, 28 Apr 2002 15:35:27
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Saab/GM is attempting a major turnaround or looking to triple sales in 5 years (Saab stated double or triple was their goal...), they are correct in their focus with the 9-3... they must PRIORITIZE the largest addressable market that fits their values. That starts with a sedan.
KQuigley is right on -- Audi's turnaround was based on the A4 Sedan, and it retained Audi's Core Value -- Quattro. Recall that Audi had a nice hatchback coupe pre-dating the A4 -- they didn't update that variant as their renaissance vehicle. They chose a sedan -- proven acceptance by a large US audience. A good debate is what is Saab's Core Value -- seems like Saab's DNA includes a combination of fwd, turbo, safety, comfort... Not a single defining item (BMW's is the straight six plus 50-50 balance, so it doesn't have to be a single component). A hatch isn't a core value, it's a line extension.
Look at Saab's goal -- they need unit sales volume, then they can look to address manufacturing capacity to offer product line breadth. The first product must be addressed at the largest market segment -- the entry-luxury sports sedan market, dominated by BMW, Audi, MB, and hotly contested by Lexus, Infiniti, Volvo, and Passat. I don't know how many total sedans are sold in this segment, maybe 1.5 Million per year. Since Saab doesn't have a small sedan, for the vast majority of these affluent buyers, Saab's nice 9-3 hatch was not even considered an alternative.
Now, with all these competitors achieving volumes -- and maintaining some pricing and depreciation strength -- they can afford to diversify, offering their heavy store traffic some alternatives... AWD, Wagons, coupes, and a sprinkling of hatches.
But Hood, don't look at the Lexus or MB Hatch (or lowprice econoboxes) as evidence of a big sport-luxury hatch market -- they didn't start with those, they brought them on as flanking products to their bread n butter sedans.
Saab has bigger issues than retaining a small core hatch audience. They must grow, and GM is backing them with the $$$ to ensure they don't make the mistake of selling niche products to the same customer base year after year.
Original or distinctive strategy? Perhaps not. Tested and Successful? Absolutely. And if it sells (and it will, because Saab makes a great product, GM has the money and Lutz loves the Aero), they'll reverse their stance and make a hatch, too. But first things first.
Last point - the 9-3 sedan shouldn't cannabilize the 9-5 if they do their homework... All competitors have small medium and even large sedans to trade customers up as their needs change.
Redirector
2002 9-5 Arc sedan
posted by 168.73.24...
Posts in this Thread:
- I've seen first official pics of the new 9-3, Clawfinger, Sat, 27 Apr 2002 07:25:55
- How come no one mentioned engine lineup?, JIM, Mon, 29 Apr 2002 11:43:33
- I betcha its all a fake........, Paul
, Mon, 29 Apr 2002 11:34:55 - I'll wait for the Hirsch 9-3 Aero....AWD 6 Speed n/m, Johnny del, Mon, 29 Apr 2002 00:25:36
- Hatchback Reality, Sieglo, Sun, 28 Apr 2002 16:33:08
- I'm in love but would like a hatch also and 3 spokes, Atul, Sun, 28 Apr 2002 15:06:43
- Sweet, Sieglo, Sun, 28 Apr 2002 11:28:38
- Re: I've seen first official pics of the new 9-3, Jonas, Sun, 28 Apr 2002 11:04:37
- Awsome!, Coolknight, Sun, 28 Apr 2002 07:41:01
- Good looking car! A hatch would've looked better! n/m, KS, Sat, 27 Apr 2002 23:45:41
- Am I the ONLY one who doesn't like it?!?, IronJoe, Sat, 27 Apr 2002 23:19:24
- I agree with you., Tim S, Sun, 28 Apr 2002 12:34:54
- Yup... You're the only one!, KQuigley, Sat, 27 Apr 2002 23:47:45
- yeah, it's just you! ;-), Ron H, Sat, 27 Apr 2002 23:41:37
- Any chance the Diesel will make it to N. Am.? n/m, Cannonball, Sat, 27 Apr 2002 18:59:40
- No!, BillR, Sun, 28 Apr 2002 10:40:39
- wait, did you say tabloid? :)......n/m, Quinn S. Kurz, Sat, 27 Apr 2002 13:37:57
- looks nice, but looks like a BMW...n/m, Boris 88SPG, Sat, 27 Apr 2002 11:00:34
- Now you can see it on the web!!! (Link), Clawfinger, Sat, 27 Apr 2002 08:22:02
- Nice looking. Rough translation of info in the article, Notes, Sun, 28 Apr 2002 12:10:39
- Roof line reminds me of the Audi A6 or VW Passat, Allen K, Sat, 27 Apr 2002 14:00:47
- Wow, good job... and again, nothing like the spy shots., Scott Paterson
, Sat, 27 Apr 2002 11:56:35 - handsome, John A., Sat, 27 Apr 2002 08:41:16
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