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Posted by Otis (more from Otis) on Fri, 27 Nov 2009 19:50:45 Share Post by Email
In Reply to: Maybe we're to blame, No Snaab, Thu, 26 Nov 2009 08:43:42
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Having read all the posts on this thread up 'till now, I'll throw in my 2 cents. First off, it's true that if there were more used buyers out there, used prices would be higher. Supply and demand is a concept not yet debunked in my view. There are not a whole lot of buyers for new or used. A lot of people here have bought used, but there aren't a lot of people out there like that versus used Honda buyers, for example. One could search for Saab fans within a 50 mile radius of my home, and I guarantee they (we) would all fit in a phone booth.

A lot of people think GM killed Saab. I disagree. It's true that GM did Saab no favors from a marketing standpoint (there was practically no marketing come to think of it), but Saab likely never would have survived as a stand alone by the turn of this century. Global competitive pressures, tightening emissions and safety regulations legal liabilities of all kinds to consider - a relatively small player simply can't compete in today's environment. If you're a player like Porsche you can because you have pricing power; not so for Saab.

The world's car producers were struggling with over-capacity well before the economic crisis of 08/09. The crisis only exacerbated the capacity issues to the point that no one can make money if the U.S. is consuming new cars at a rate of only nine or ten million per annum. The Koreans are viciously fighting for market share. When the dust settle a bit more, the Chinese are eyeing our market. Buyers are responding to what they perceive to be the best values. In my opinion, Chrysler could disappear altogether save the Ram pickup and we'd never miss it. Pontiac, Saturn and maybe Hummer (as we mostly know it) are gone. Saab is simply a victim of a number of global trends, including the emergence of the Asian tigers. If it makes anyone feel any better, Volvo is in not much better shape, and even Jaguar would be in the same position as Saab if it weren't for its incredible cachet and the deep pockets of an Indian buyer.

Having said all this I'll miss Saab as much as most here, it's really very very sad...I feel like we are in posession of a great secret in the car world, but not enough people are paying attention.

posted by 216.19.1...


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