Koenigsegg Saab Plan - Saab Going Up Market
#1
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Just because Koenigsegg is working to by Saab doesn't mean that the maker of million dollar coupes plans to spend time in the mass-market end of the buying pool. In fact, according to Swedish newspaper Dagens Industri, Koenigsegg wants to make more money selling fewer Saabs, which it can only do by taking Saab upmarket. And the numbers being reported indicate not just medium luxury, but top shelf, Cadillac Margarita luxury. Straight from the paper, this is allegedly Koenigsegg's ambitious three-step plan:
2010-2011: The current phase
- 115,000 cars sold gives zero in operating profit
- Average price per car: 189.000 SEK ($27,546 U.S.)
2012-2015: Transition
- 80,000 cars sold gives zero in operating profit
- Average Price per car: 208.000 SEK ($30,311 U.S.)
- New models including 9-5 Koenigsegg Edition
2016 - : premium
- 65,000 cars sold gives zero in operating profit
- Average Price per car: 280.000 SEK ($40,804 U.S.)
- New models include New 900
There's a bit of confusion over average prices mentioned. The current base price of a 9-3 in the U.S. is $30,360, and it wouldn't make sense to have the average price for the entire model line in the current phase be less than the base price of the cheapest car in the cheapest country, even at a higher volume. (The base Saab 9-3 starts at 301,990 SEK, which is $44,008 U.S.)
If the devotees at Saabs United have it right, a commenter in the original Swedish article who also claims to be a Saab dealer said the average prices are missing region-specific taxes, so they should be 55-60% higher. That would make the transaction price in the current phase about $43,000, and in the final, premium phase about $63,000 with a 55% markup.
While the numbers are fuzzy, what is pretty clear is that Saabs are going to cost a lot more in seven years if Christian K. gets his way. And they'll have to be, if he wants the company to break even on 65,000 cars sold annually, which would be a 27,000 unit decline from last year's (unprofitable) numbers. Saabs United also has a well reasoned look at the various sides, but still, for Saab lovers and watchers, this must all sound a bit crazy. But, hey... so is a Koenigsegg.
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#2
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So, they're pulling off what Hyundai should have done with the Genesis line-up?
I mean, everyone has suggested that Hyundai should have created a new brand to promote their upscale items (Veracruz, Genesis, Equus). Saab is gonna do it, but leaving the mainstream market behind.
Will Saab succeed changing its course as a "new" brand of cars? Or will its name and market perception keep it from climbing up the ladder?
I mean, everyone has suggested that Hyundai should have created a new brand to promote their upscale items (Veracruz, Genesis, Equus). Saab is gonna do it, but leaving the mainstream market behind.
Will Saab succeed changing its course as a "new" brand of cars? Or will its name and market perception keep it from climbing up the ladder?
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I've always liked Saabs. They are quirky interesting cars with interesting engineering. With no more GM ties, they will have even more Swedish engineering and DNA. I see no problem in Saab going upmarket. Saab is already fairly upmarket, and they have not been making any profit. They might as well push them further upmarket, giving Saab a better image and finally some profit.
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