In Reply to: Re: In the eighties BMW and Audi had, Justin VanAbrahams [Profile/Gallery] , Wed, 6 Apr 2011 00:44:38

great post. I love the idea of using spyker to produce a SAAB supercar, since they seem to have figured out how to do that... of course, now that's not as feasible since they are separating as business units...

In terms of making a cheaper car. I dunno. In business, you either need big margin or big volume. Ideally you get both but you certainly don't want "neither". By running a good bottom line, SAAB de-risks things... but they need to improve the top line (big time!). I read their current strategy as going after margin more so than volume. I think that is practical. The trouble with chasing volume is you have to win against the likes of Honda + Toyota (and even worse, the Koreans + soon the Chinese)... So imho, SAAB has to convince the customer base that it provides value to support a higher price tag. imho, where they sit right now is probably not too bad if they can shore up the margins. I believe that is what the existing business case is based on. $25k small car might work (Mini competitor) if they can either get margin or volume. harder to get good margin on a low sale price though, and I wonder what capacity the existing factory has to fight a volume war (even if demand is there)... expansion costs for low margin production can make things dicey...

just some thoughts...

James...

posted by 216.59.241...

• Food for thought, Gm ruined or saved Saab, SI, Tue, 5 Apr 2011 16:41:51
  • A marriage doomed from the start?, Tim, Fri, 8 Apr 2011 11:14:55
  • Re: Food for thought, Gm ruined or saved Saab, Liam S., Thu, 7 Apr 2011 13:50:17
  • Saved. But I say it with reservation., Mike Johnson, Wed, 6 Apr 2011 03:38:27
    • I agree, john b, Wed, 6 Apr 2011 08:35:23
      • I can only imagine...., Mike Lynch , Thu, 7 Apr 2011 11:40:32
        • I wouldn't think you'd have to, you kept telling us..., AeroEd, Mon, 11 Apr 2011 09:56:33
  • In the eighties BMW and Audi had, MikeVT , Tue, 5 Apr 2011 20:16:36
    • Re: In the eighties BMW and Audi had, SI, Tue, 5 Apr 2011 21:52:19
      • Re: In the eighties BMW and Audi had, Justin VanAbrahams , Wed, 6 Apr 2011 00:44:38
        • Re: In the eighties BMW and Audi had, James, Wed, 6 Apr 2011 10:40:38 <-- Viewing This Message
          • Re: In the eighties BMW and Audi had, Justin VanAbrahams , Wed, 6 Apr 2011 13:09:58
            • A friendly amendment, Dan-O, Wed, 6 Apr 2011 13:37:32
            • target Subaru + Volvo, not BMW + Merc., James, Wed, 6 Apr 2011 13:34:24
              • I agree, No Snaab, Thu, 7 Apr 2011 07:24:58
              • This conversation is in the right direction, Noel, Thu, 7 Apr 2011 06:32:14
              • The *real* advantage of a Saab over a Subaru ..., dmz789qqq, Wed, 6 Apr 2011 21:56:29
                • Re: The *real* advantage of a Saab over a Subaru ..., Justin VanAbrahams , Thu, 7 Apr 2011 10:42:44
                  • great post, a few bits of data for comparison..., James, Thu, 7 Apr 2011 12:34:06
                    • Many of us seem to be on the same page here., Noel, Fri, 8 Apr 2011 06:49:20
                      • Re: Many of us seem to be on the same page here., Justin VanAbrahams , Fri, 8 Apr 2011 10:01:09
                        • Hyundai also., James, Fri, 8 Apr 2011 10:33:53
        • Re: Great post! Thanks for doing the homework..., Joeychess, Wed, 6 Apr 2011 06:31:30
  • How about both?, Eric Law, Tue, 5 Apr 2011 18:20:19
    • yup. definitely both..., James, Wed, 6 Apr 2011 10:28:58
    • Re: How about both?, Dan-O, Tue, 5 Apr 2011 18:30:31
  • Saved......, Mike Lynch , Tue, 5 Apr 2011 17:00:53
    • Re: Saved...... 2nd that., Noel, Wed, 6 Apr 2011 08:24:42
    • Re: Saved......, kkelley, Tue, 5 Apr 2011 21:15:42

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• Prev by Date: yup. definitely both..., James, Wed, 6 Apr 2011 10:28:58
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