Re: In the eighties BMW and Audi had - Saab General Bulletin Board - Saabnet.com
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Re: In the eighties BMW and Audi had
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Posted by James [Email] (more from James) on Wed, 6 Apr 2011 10:40:38 Share Post by Email
In Reply to: Re: In the eighties BMW and Audi had, Justin VanAbrahams [Profile/Gallery] , Wed, 6 Apr 2011 00:44:38
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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...

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