Saab planning new models to lure in customers
General Motors is not alone in making huge losses. Their subsidiaries are doing no good either. Saab is one good example. However, Saab is now trying to make amends by launching three new models in Europe in an effort to boost volumes and break even. The company as a result would now have five products in the market from current two models in the European market.
One of these new models would be a big 9-7 sports-utility vehicle which is already available for sale in the United States. In addition, a smaller model 9-4 is also expected to be launched in the European market by the GM’s subsidiary. In addition, Saab is also said to be developing a compact car in the segment consisting of rival models like VW Golf and GM’s own Opel Astra.
However, this model is not expected to reach the retail market before 2010. The auto company is currently running in red and the losses are mounting on with every passing year. The company has also reported to have made losses of around 1.9 billion Swedish crowns in the first half of the year.
However, Saab is optimistic as their chairman Carl-Peter Forster recently told a media group that they expect to break even with sales much below the market expectation of 200,000 cars a year. Saab sold around 120,000 cars in Europe and North America last year.