Saab hangs on, stays optimistic
Various Saab vehicles, which include a number of old and upcoming models, are currently on display in this year’s Frankfurt Motor Show. The primary offering of the Swedish automaker is the new and improved jet-black Saab Turbo X, which debuted three decades ago. Amidst the top of the line upgraded models of Saab, the company keeps on slipping down in terms of its sales and the blame is being pointed on the so-called bland models it offers. As an answer, the very composed Saab constructed a strategy so that sales will no longer suffer: to remove the lofty target sales, to aim for low volume structure, and to focus on the Saab brand.
These are just the initial steps being taken by the Swedish automaker Saab to alleviate the company’s sales, which has slipped to just 133,000 units last year. Saab was far behind its rivals such as Mercedes Benz, Audi, and BMW. The statistics, however, cannot stop Saab from fighting back.
“We at Saab have been very inconsistent in our approach and we have to change that,” said Saab’s chief executive, Jan-Ake Jonsson, who is leading the automaker’s latest initiative.
One of the first steps being taken by Saab is to change the sales target of 250,000 units per year.
“We’ve created a structure where we can get returns at 150,000,” said Jonsson. “If we can get 175,000 units, I will be very happy.”
For the low volume structure vehicles, Saab has the turbocharged Saab Turbo X, which is part of the still ongoing Frankfurt-based auto show. A pioneer in the turbocharged engines, Saab’s new model has Saab parts such as a 2.8-liter power plant that can produce up to 280-horsepower and runs with a four-wheel-drive.
“The Turbo X is there to make a statement about our heritage and to communicate that the turbo is and will be important for Saab,” said Jonsson. “Also, the all-wheel drive system gives you the option of having more performance.”
Moreover, the last but the best step being done by the automobile company is to focus all the creativity and quality-engineering in improving the brand. This action has been seen as a step going forward because Saab will be offering models that are a far cry from its bigger rivals. According to Saab chief executive Jonsson, the company will no longer strive to become a ‘better BMW than BMW.’
“During the last couple of years, we have been really trying to focus on the brand,” said Jonsson. “Also, as part of that exercise it has also come to accept that the company’s sales could stay low for years to come.”
