GM makes deal for Saab
DETROIT — For the new owners of Saab Automobile to make money selling small numbers of cars across the globe, they have to return to the Swedish automaker’s roots, industry analysts say.
Somehow, a consortium of investors led by custom sports car maker Koenigsegg Automotive AB must restore Saab to the quirky, cutting edge and reliable brand once favored by professionals who wanted to look smart rather than wealthy.
"It was seen as a discerning choice," said Tim Urquhart, senior automotive industry analyst with the consulting firm IHS Global Insight in London. "It was a professional’s vehicle, a doctor’s or an architect’s. A quality vehicle, but not an obvious statement like Mercedes or BMW."
GM announced Tuesday that it has struck a tentative deal to sell the storied brand, which started as a Swedish aircraft maker.
Koenigsegg, a tiny company which produces only a dozen super cars a year costing more than $1 million each, was founded in 1994 by von Koenigsegg, a Swedish sports car fanatic and entrepreneur who remains chief executive.
Von Koenigsegg, in an interview with Swedish television, seemed to agree, saying that the new owners would try to restore some of the brand’s heritage while finding a place in the market between upscale and mainstream.
"This is neither a luxury or a people’s car, but it has its own niche — a bit of postmodern comfort, sporty, but with environmental thinking," von Koenigsegg said credit scores. "We want to capture the Swedish aspect too. GM had a bit more of an international approach, and Saab drowned a little bit in that context."
IHS analyst Urquhart said GM didn’t seem to know what to do with Saab, and failed to set its models apart from mainstream brands. The Saab 9-7X sport utility vehicle, for example, is very similar to a Chevrolet TrailBlazer, and the 9-3 midsize sedan is a close relative of the Pontiac G6.
"Without being too rude about it, GM sucked all the brand value out of it," Urquhart said.
Tom Libby, an independent Detroit-area auto analyst, agreed that Saab lost its uniqueness in the now-crowded luxury segment and will have to find a new niche.
"We know that safety is addressed. We know that performance is addressed. We know that pure upscale luxury is addressed," he said. Saab has to find a "white space that’s not covered. I don’t know what that is right now."